Impact of COVID-19 on India Business Industry

This is bad time for the entire business world even a small shop owner suffer crises due to this global pendemic . While there’s no slew of tried-and-true best practices for dealing with this global pandemic, the are some business which are going to be changed after covid-19 , these business ideas can help you emerge out as a leader through this crisis.

Moreover, it is equally essential to understand that the concept of the online marketplace comes with a futuristic approach. I truly believe that there will be a solution to this pandemic very soon. The world will be a healthier and safer place once again. And the businesses will be gaining their momentum. but after pendemic their is a new era of doing business, in which internet play a major role for making business easy .

We have been forced to adopt digitalization in our everyday life. These new habits have created new business opportunities but at the cost of huge economic losses. Enterprises had to adopt new normals and smartly diverse their operations. Other industries like tourism, travel, real estate have also been impacted. In these adverse times, the role of decision-makers to implement smart and sustainable business models is very important

1.Education Industry:

The 1st industry which is going to change Education , Children are missing their school/collage , as they have been inside at home for a long period of time. Digital education has experienced new growth in these periods. Many schools have tried different online teaching platforms to fulfill their requirements. The assessment of assignments and taking online exams are the newest challenges these schools are facing. Home tution and coaching centers are out of market , somehow big coaching center able to go online and hardly fulfill requirement and provide material to student because have fewer resources and facilities to avail these tools, but it’s very hard for them too, but small coaching and tution center are out. Their place is taken by some new internet era their is a lot of educational-Tech Platforms like Byju’s, Extra marks, Vedantu etc. are eating up their market.

Besides these, teachers are struggling to make their students understand the concepts. Therefore, recorded videos are frequently being used, which contain more options and animations to represent the concepts. but still it’s not enought for students

2.Health Care\medical Industry:

The most affected industry in the covid -19 is the health care industry.The impact of the coronavirus pandemic and the lockdown it triggered is clearly visible in financial markets. But there is still no clarity on the deeper impact that it is having across businesses and industrial sectors. Here is an impact analysis in healthcare sector.

The healthcare sector is at the epicentre of this unprecedented global pandemic challenge, and the private sector has risen to the occasion, by offering to the government all the support it needs, be it testing support, preparing isolation beds for the treatment of Covid-19 positive patients or deploying equipment and staff in identified nodal hospitals.

Just because of covid -19 all the global health care industry only focous on only COVID-19 , and all the other disease medicen on demand , all hospital are only about to check covid -19, putting on hold of a large number of patient of less harmfull disease , and all clinic are closed . their are also some online site / app’s which are providing home delivery of medicines and home service of doctor , but it’s not fulfill of requirement , and these are very expensive so poor people are not able to get medicine and doctors.

What is the impact on India’s medical devices industry?

  • The medical devices industry has also taken a hit. The country imports consumables, disposables and capital equipment including orthopaedic implants, gloves, syringes, bandages, computed tomography and magnetic resonance imaging devices from China. Due to the current crisis in China, the medical device manufacturers across India are finding it difficult to source important raw materials and electronic components from Chinese factories.

3. Self-Care Industry:

This pandemic has shown us the importance of self-care during negative times. We got to know, to lead a stable and efficient life, keeping our mind stable is essential. This has resulted in a boost of self-care content consumption online.

Consumptions for motivational contents, exercises, healthy diets, mind management etc. has increased exponentially. Subscriptions for the online webinars of established trainers has increased hugely.

Minimalist mindset adoption has seen higher growth numbers, which suggests, people now care to stick with essential items than luxuries. We have realised we require a fairly minimal number of items daily and the rest of the items are actually blocking our cupboard spaces.

4. Entertainment Industry:

we miss the cinema halls, a cheers from the crowd and we enjoying the ridiculously priced popcorn looking at the big screen. We are unsure when we can experience this again, as people are preferring to maintain social distances and cinema halls seats can be an easy prop to transmit the virus. Therefore, some yet to be released movies are releasing online, through the partnerships with media streaming applications.

In the covid-19 lock down all shooting , editing , composing etc are closed all artiest are in house thair is no prodction house working, but soon as we expecting end of pendemic and all these start again and we enjoy it. but in this digital era, platforms like Netflix, Amazon prime etc. have capitalised hugely and have become a necessity for many entertainment seekers than a luxury.

Meanwhile, we realised that authentic and valuable contents can win hearts even after a quarter of the century. Mythological series like Ramayan, Mahabharat etc. were adored hugely by everyone, which showed us, true contents can hold the attention of any age group. The nostalgic feeling and throwback to old days kept the TV channels alive.

5.Hospitality Industry:

All Hotels and restaurants have been shut down across globe and in India since last 3-4 months which is hugely impacting the pockets of owners. Many owners had to fire workers to sustain the period, though the future revenue figures are uncertain.

 With leisure and business tourism coming to a standstill because of the Covid-19 pandemic, India’s hospitality sector is facing its biggest crises ever,  pandemic and the containment measures introduced by Governments globally and in India resulted in a severe drop in foreign and domestic travel across the world, in both the business and leisure travel segment. This will leave a lasting impact on the credit profile of airlines and hospitality companies. Globally, hotels have acknowledged the depth of this decline with recovery stated two to three years from now.

THANKS !

Deshdeepak

Image source : google

MODI ANNOUNCES 20 LAKH CRORE RESCUE PACKAGE

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 In a televised address nation before the end of 3.0 national lockdown , India’s prime minister, Narendra Modi, announced an economic rescue package of 20 Lakh carore{ $260 billion}  which is aproxx 10% of  Indian GDP  for a nation that, although relatively successful in controlling coronavirus infections, has been left economically devastated.

The Rs 20 lakh crore economic stimulus announced by the Prime Minister takes into account the measures that the government and RBI have already rolled out in the form of Rs 1.7 lakh crore in cash and free food and Rs 5.24 lakh crore in liquidity support. That pegs the new stimulus at Rs 13.1 lakh crore, or 6.5% of GDP, which will likely come in the form of loan guarantees for MSMEs, wage support for MSME workers, aid for migrant labourers, tax sops to make local production competitive, tax cuts to spur spending and support for construction and housing sectors. The total package at 10% of GDP puts India in league with likes of Germany, Sweden and France and way ahead of Spain, Italy, the UK and China.

Prime minister  was short on details but said the relief package, which amounts to around 10 percent of India’s gross domestic product and was larger than expected, would help all classes, from farmers and migrant laborers to big businesses.

He urged Indians to become more economically self reliant  which means using of indian made product more than international product giving a example of mahatma Gandhi ji as he campaign to boycott British textiles and buy Indian cloth instead.

“Be vocal about local!”  prime minester said . “Who can stop us from becoming a self-reliant India?”

He further said  that India can make many products locally, boasting that the country went from manufacturing almost no PPE kits or protective masks before the coronavirus pandemic to now making hundreds of thousands each day.

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As so long national lockdown of a 1.3 billion people pandemic have hit its economy especially hard, leaving millions of poor people unemployed. All across the country, out-of-work laborers have been pouring from cities and returning to rural areas where they hope to rely on family members to survive.

As Prime minister promised that in the coming days India’s finance ministry would reveal all the details of fund and who will get benifit from this package, migrant laborers , farmers, honest taxpayers, MSMEs  (micro small and medium enterprises ) and cottage industry.were  among the people who would be helped by the stimulus plan.

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 As 3.0 National lockdown will end on 17 may , Mr. prime minister didn’t directly address  that national lockdown  further extend, but he said that during the next phase of the lockdown,rules would change. And he hinted that the lockdown might be eased.

“All the experts are telling us that corona will be part of our lives for a long period,” Mr. Prime minister said in his half-hour speech. “But we cannot allow our lives to revolve around corona, corona, corona.” He urged Indians to continue wearing masks and maintaining social distance.

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India has reported around 70,000 corona virus infections and 2,300 deaths. For a country of 1.3 billion people, that is a very low as compared with other richer countries. Though testing is lower here as well, which may mean the infection rate is higher than reported, many public health officials have said India has done a good job so far in containing the virus.

 

THANKS !

Deshdeepak

 

 

 

data and image source – google and news agencies

 

 

EFFECT OF COVID-19 ON INDIA CHINA TRADE

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As COVID-19 has play a very bad impact on the world economy. Almost  every economy shutdown due to implimentation of  national lockdown across the world , and   Access to the outside world has shrunk; almost every county has severed their supply chains with China. Lockdown has shrunken our business , work ,education,  social life, evening previously spent with friends are now passed plugged into laptops and mobile phones. The lockdown by India imposed has affected the domestic trade too. in India lockdown extend by Modi government till 19 may , and in this long period entire nation  shut down almost each and every business, every job, startup , even small business  effected by this lockdown , each and every person of the nation are in their house  doing nothing , using mobile and laptop.

In China their is also lockdown which is now open as China is a big exporter  of a large amount of commodity across world, and to India  because  a large number of manufacturing unit in China. and all the manufacturing unit are shutdown either closed the product due to global pendamic  .

As per the official Chinese data, a 12.4% decline in India- China trade was seen for the month of January and February 2020. China’s export during this period was about 67.1 billion Yuan.

Many sectors have suffered huge losses due to the imposition of the lockdown. The medicines imported from China have seen a huge jump in their prices. Paracetamol imported from china has seen a hike in its price by up to 40%. India imports 70% of its medicines and medical raw material from China. Due to which we will soon see a price jump in medicines.

China has been a leading exporter of electronic products. Televisions and mobile phones whose 75% and 85% of the components respectively are Chinese made, are going to be hit. Supply from China is shut since December 2019, which caused a shortage of cheaper basic products. DAIKIN, a Japanese air-conditioner manufacturing company has already informed its retailers that the company is going to be increasing prices by 5% to 7%. Products which can be made easily in our own country are imported from China because they are cheaper. Discounts earlier received on mobile phones and other electronic items will be cut off and are expected to hike in price, there are expectations that there will be a 10%-20% increase in the price of electronic products.

As India has shut down the exports, it will make the textile industry suffer. India is one of the largest producers and exporters of cotton yarn. India exports about 25% of its annual cotton and cotton yarn to China. The cotton export is being held up completely.  The fabric export has seen a sharp decline. The cost of raw cotton has been reduced by Rs.200 to Rs.300, because there is no demand from China.

Toys will get costlier because the toys imported from China which cost about Rs.10, if made in India costs around Rs.17, this is due to machinery. China manufactures toys on a larger scale. Whereas in India the production is on a smaller scale as compared to China, and without the advance machinery as in China.

Out of every 15 diamonds of the world 14 are cut and polished in India. India exports 36% of its diamonds to China, this will cause India to lose around $1.05-1.3 million. India’s gold market saw a 92% decline in demand for this Akshaya Tritiya, the annual spring festival Hindus  for which, consider it to buy gold and demand of yellow mettle is very high during this festival.The alloy is mixed with gold to give it strength and durability, and  the platinum used to gold rhodium polish are imported from China; this will force the retailers to increase their making charges, resulting in an overall increase in the price of gold and silver jewellery.

As China is the largest exporter of iron and steel in 2019 having exported 87.3 million metric tons which equals approximately 15.8 % of global exports and its expected to increase in the price of the production after covid -19 As regards steel, although Chinese export prices of steel do influence Indian export realisation, imports from China of pipes (Chinese share 32.0% of total imports of this category in April-January’20), GP/coated products (Chinese share 14.3%), electrical sheets

India faced a similar slowdown back in 2008 which caused the GDP growth to fall from 9.8% to 3.9%. The Great Recession of 2008 made China the economic powerhouse. This slowdown is due to the lockdown where all the factories and workplaces are closed. It is expected that after the lockdown opens the demand will be back on track, but it will take time because people have suffered a pay cut and are left with lesser money to spend on wants, and due to the shortage of imports from China, people will have to pay more for the same than they paid earlier. Japan has earmarked $2.2 billion to help its manufacturers shift production out of China. India can be the next best location after  China; because India has a lower labour cost and is easily accessible to other countries. and ,India is working MNC’s planning to shift their production units from China in the post coronavirus world. The Finance Ministry has asked a select group of industry representatives to send “implementable” suggestions on an urgent basis to make the country a global manufacturing hub

THANKS !

Deshdeepak

 

 

 

Data source- google and govt. of India and china official website.