The Battle between Coronavirus and Humanity

Coronavirus cases and death tolls are increasing every day. While the lockdown has managed to prevent numbers from growing rapidly, the virus still remains a threat.

While many of us live indoors to ensure that this threat is minimized, there is a spiral and direct impact on the economy, the mental well-being of people and the overall way of living as we know it.

Some surveys and data

According to the latest World Bank assessment, India is expected to grow 1.5 percent to 2.8 percent. The International Monetary Fund projected a 1.9 percent increase in gross domestic product (GDP) for India in 2020, as the global economy is experiencing the worst recession since the Great Depression in the 1930s.

According to a CLSA report, pharmaceuticals, chemicals and electronics businesses are likely to face supply-chain issues and prices will increase by 10 percent.

According to CII, GDP could fall below 5 percent in FY 2021 if financial action is not taken immediately.

A FICCI survey showed that 53 percent of Indian businesses indicated a marked impact of COVID-19 on business functions. And 42 percent of respondents said that it could take three months to return to normalcy.

The United Nations Conference on Trade and Development (UNCTAD) suggested that India’s trade impact could be as high as $ 348 million due to the outbreak of COVID-19.

According to KPMG, the lockdown in India will have a significant impact on the economy mainly on consumption which is the largest component of GDP.

Understanding the Impact

Concerning imports, the addiction of India on China is enormous. Among the top 20 products (in the two-digit of HS Code) which India imports from the planet, China accounts for a substantial share in nearly all of them.

India’s total digital imports accounts for 45 percent of China. Around one-third of machines and nearly two-fifth of all organic compounds which India buys from the entire world comes from China.

For automotive components and fertilizers, China’s share in India’s export is greater than 25 percent. Approximately 65-70 percent of active pharmaceutical ingredients and approximately 90 percent of particular cellular telephones come from China to India.

Concerning exports, China is India’s third-largest export partner and accounts for about 5 percent share. The effect may cause these sectors namely organic compounds, plastics, fish products, cotton and ores, amongst others.

In India the 3 big contributors to GDP namely personal consumption, investment and external trade will get influenced.

Sector-wise impact

The epidemic and the resulting lockdown have affected various sectors, including MSMEs, hospitality, civil aviation, agriculture and allied sectors.
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Pharmaceuticals

There is significant concern for India on the pharmaceutical industry, with 70 percent of mainly active pharmaceutical ingredients (APIs) being imported. These APIs are required for a large number of pharmaceutical manufacturing companies in the country.

As COVID-19 is rapidly making its way through India, the drug is going to become the number one consumer demand, and because there are not nearly enough APIs to manufacture the drugs, the prices of the latter merchants and the market skyrocket Are being seen Vitamin and penicillin prices alone have seen a 50 percent increase.

Tourism

Travel and tourism sector in India has witnessed the biggest decline as a result of COVID-19. Coming up with a sluggish economy and growth over the years, COVID-19 is widely expected to bring the sector to the brink.

The aviation and tourism sectors have been largely affected, due to the near collapse of the region, the cancellation of inbound visas, and stringent restrictions on domestic or international travel.

The aviation and tourism sectors have been largely affected, due to the near collapse of the region, the cancellation of inbound visas, and stringent restrictions on domestic or international travel.

Hotel & Restaurant

The restaurant and food service business has seen a huge decline. Business holidays, holiday vacations, family vacations, gate-vehicles, social occasions, etc., are closing completely and as such the hospitality sector is taking a difficult step.

Sorting is inevitable in the restaurant sector as cash flow has dried up almost completely. Small and medium-sized restaurants will be the most affected as they struggle to cover fixed costs.

Aviation

This outbreak has affected the aviation industry. The Indian government has asked airlines to work under pressure, following an indefinite tourist visa.

Private airport operators have requested the government to allow a minor passenger comfort fee to be levied on air fares to cover the increased operating costs.

Automobile industry

The auto industry currently contributes about 50 percent of the production gross domestic product (GDP) in India; consequently this industry is going to be the most impacted industry on account of this worldwide pandemic.

Uncertainty is hovering over the Indian automotive sector and also the coming weeks are expected to unleash a plethora of challenges for the business staring at decreasing earnings and fast-evolving customer tastes. Automobile and part manufacturing plants have been shuttered across the planet, customer footfalls in showrooms have dropped sharply, automobile sales are falling dramatically and virtually every significant industry event is being cancelled or moving the digital manner.

Macroeconomic problems that added for the crisis include the decrease in demand/consumption both in both urban and rural markets, plus a liquidity crisis in the financial industry.

Electronic industry

Almost 55 percent of electronic equipment imported by India emerge from China. These imports have slid down to 40 percent in light of this coronavirus outbreak and following lockdown.

India’s electronic business can confront supply disruptions, manufacturing, decrease effect on product costs as a result of heavy reliance on electronics part provide directly or indirectly and local production.
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Implications on the workforce

Undoubtedly, with this tragedy impacting the company across the nation, it is going to create quite challenging situations for your workforce. Companies aren’t fulfilling the earnings targets consequently, forcing companies to take price cutting conclusions.

Job reductions and salary cuts are probably from the high-risk services industry, such as airlines, hotels, malls, multiplexes, retailers and restaurants, that have witnessed a sharp, drop in demand as a result of lockdowns throughout the nation. Not just the workers of multinational businesses, but everyday wage employees are affected the most throughout this catastrophe.

According to a preliminary evaluation report, almost 25 million jobs may be lost worldwide because of this coronavirus pandemic, however a global coordinated policy response might help lower the effect on international unemployment.

Impact on employee mental wellness

This pandemic has created an environment of uncertainty among the people across the country. While we are focusing on maintain our physical health but somewhere we are ignoring the fact that this situation is affecting our mental health too.

Anxiety level is increased in employees resulting in serious health issues.

Effect on employee mental welfare

This pandemic has created an atmosphere of uncertainty among people across the country. While we are focused on maintaining our physical health, but somewhere we are ignoring the fact that this condition is also affecting our mental health.

Serious health issues result in increased levels of anxiety in employees.

According to recent media reports COVID-19 is having a positive impact on crime, as it is being said that the crime rate in India is witness download trend but what about non-reported crime, ie domestic violence. The National Commission for Women, which receives complaints of domestic violence from across the country, has recorded a more than two-fold increase in gender-based violence in th   e national coronovirus lockdown period.

Everyone is on edge due to the uncertain future arising out of job losses, pay cuts, lockdowns and increased violence within home boundaries.
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Lower level effect

This lockdown has hurt daily wage earners, contractual labor and self-employed workers pushed out of jobs amid the country’s high unemployment rate, mainly in the informal economy in rural and urban areas.

According to the rapid assessment survey, according to civil society, which focuses on the human rights of socially excluded communities, 92.5 percent of labor has already lost one to three weeks of work.

We need to understand that the effect of this virus will be not only economical but also social. The virus does not differentiate between rich and poor, between one state or the other. It is time for all of us to truly rise up as humans, as a society, as a country and continue to battle the virus with resilience and empathy.

The government is taking all necessary steps to help us fight this situation. All of us, as individuals, have to do our work by caring for our own wellbeing – physical, mental and emotional – and the people around us, our family members, our domestic employees and our teams at work.

Follow the rules of lockdown. Don’t be in a hurry to get late. Let’s find other ways to reduce costs. It is easy to be generous and kind when it is good to be generous and kind when times are good. It reveals true character during these difficult times.