With over 350,000+ detected cases in more than 185 countries around the world, Coronavirus is one of the fastest spread pandemics the world has ever seen. While governments across the globe are taking precautionary measures, the economy has taken a massive hit due to the outbreak of this virus. According to the UN Conference on Trade & Development, the Coronavirus outbreak might cost the global economy a loss of over $1-2 trillion in 2020 alone.
Currently, the countries that are facing the maximum brunt of this outbreak are China, Italy, and Iran followed by The United States of America and The United Kingdom and others. To help companies survive these tough times, governments are providing various aid packages to businesses. For example, the USA has launched a 50-billion dollar fund to help companies that are in trouble and the Indian government too had set up a financial task force to evaluate the scenario.
That being said, while the breakout of the virus in India was a little later compared to other countries; hence, the number of people is still small. With about 420+ cases detected currently and five deaths, the pandemic is starting to show its ugly face in the country. In an attempt to prevent further spreading of the virus, the government of India has adopted multiple security measures.
Under the leadership of our Prime Minister, Mr. Narendra Modi, has done a commendable job at making sure we are able to prevent the spread of the virus. These include shutting down most shops, offices and educational institutions. A spokesperson of WHO praised his efforts praising the countries impressive commitment to combat Coronavirus. Moreover, At the SAARC nation video conference, The Prime Minister has proposed creating a COVID-19 emergency fund with India initiating a contribution of $10 million.
While these efforts have surely helped curb the breakout of the pandemic, the economy of India and businesses in the country have taken a severe hit, especially SMEs who are still surviving month-from-month. On the other hand, some industries have seen an unusual growth since the breakout. In a more holistic approach, the economy of our country sees a decline in the GDP and the export ratio. Furthermore, experts have predicted that the Indian fiscal deficit will be further affected.
In this article, we will cover both sides of the coin, the industries that have taken the biggest hit and the industries that are flourishing.
The Industries Worst Hit Due To The Coronavirus
Taking all precautions possible to ensure India doesn’t reach the effects of stage 3 of the Coronavirus outbreak, the government has suspended all the visas. Moreover, screening for the virus has become mandatory for all people traveling from one location to another. Besides this, the government has enacted section 144, wherein many shops, malls, and educational institutions have been ordered to shut down. Due to these actions, many industries have been impacted negatively. Here are a few:
The Entertainment Industry
As socializing is a huge issue and one of the main reasons for the spread of the pandemic, the first action the government took was shutting down malls, marketplaces and movie theatres. This has caused the entire entertainment industry to come to a standstill. As malls have multiple different shops, the loss of business is overwhelming. Even in cities where the government has not implemented section 144 and ordered the shutdown of malls and other centers, people are extremely scared from stepping out of their houses. Hence, regardless of the location, the entertainment industry has taken a downfall.
The virus has been spreading throughout the world, primarily due to people travelling from one place to another through flights. As people have stopped travelling, the aviation industry has seen a major decline in their revenue. Many flights have less than 50% occupancy, and people aren’t purchasing tickets, despite the major discounts provided by airlines.
Taxi and cab services which recently gained a lot of popularity, including Uber & Ola are facing an all-time low booking count. The main reason for this is the confined space of a cab which makes it a red zone for the spread of the virus. In fact, among the first cases, the virus was spread by the passengers of a cab to the cab driver, and things escalated from there.
The Poultry Industry
Due to the outbreak of the virus, people are scared to consume poultry as they believe it will lead to them being infected by the disease. Due to this, the prices of farm-gate chicken have dropped by 60% due to a lack of demand. Farmers are resorting to desperate measures to seek government assistance as the Covid-19 crisis is more drastic than the bird flu outbreak in 2006. However, the decline of this industry is unfortunate as there is no proof that consuming poultry products leads to a person being infected. Hence, it’s best to stay away from such rumors and encourage the recovery of this industry.
The Tourism Sector
Probably the industry that has been hit the worst, the tourism sector has come to a complete halt as people aren’t travelling. Moreover, as the government has recommended complete isolation, the concept of staycations is not helping too. In fact, The Taj Mahal has recorded the lowest footfall ever in the past decade since the breakout of the virus. This has led to the complete shut down of one of the seven wonders of the world, banning tourists from entering the premises. Moreover, many of the other popular tourist spots, including the Statue of Unity and multiple monuments and museums around the world.
The Industries That Stand Strong In The Wake of the Coronavirus
While most of the prominent industries are failing, there are a few who have stood strong even in the wake of this pandemic. It’s important to note that the rise of these industries is an effect of the Coronavirus outbreak. The businesses in most of these industries are addressing an issue or gap caused due to the security measures adopted to prevent the spread of the latest pandemic.
To prevent themselves from being infected from the virus, many people are purchasing masks and sanitizers. Every expert in the healthcare industry is promoting the use of these medical accessories. Moreover, as there is no definite cure or medication that people can take to save themselves from the virus, these accessories have become very popular as they are the only resort.
People are extremely cautious as the number of deaths due to the Coronavirus is increasing daily. Hence, people want to detect if they are suffering from this disease as soon as possible. Due to the number of tests and people visiting the doctors, the healthcare sector is soaring.
Online Grocery Stores
As people are in isolation and don’t venture out, the need for online delivery has increased immensely, especially in online grocery stores. In fact, these stores such as BigBasket, Grofers, and online grocery businesses have reported an 85% hike in all the orders since the virus breakout.
Digital payments industry are seeing are little over the normal transaction, due to coronavirus outbreak. As people are furious about the future nobody wants to spend cash, as they want to keep it safe for future spendings.
India being an entrepreneurial country, can face some issues in the wake of these troubled times. However, the United Indians and with the support from the government and its determination, the economy will soon recover as soon as the breakout dies down.0