Courtesied to the coronavirus outbreak, there’s no dearth of challenges and worldwide calamities across all walks of life. Lives lost, communities are isolated and nationwide unemployment clouds over us for the foreseeable future. However, the worst of all is its impact on the Indian economy at large. A lot of critics out there claim that more lives will be lost because of people being unable to pay their bills than being infected by the deadly virus.

In India, famous epidemiologist and economist Ramanan Laxminarayan said, the coronavirus “likely..ill just rip through the population.”

We have already started seeing the impact of the novel virus, with the country on a stand-still, businesses no longer operational and people living in constant fear of what the future holds for them. From the travel sector to trade & entertainment sections of the economy, there are scores of industries affected by the Coronavirus outbreak. To start with, let’s just say that we’re getting to the gravest of economic low in the previous 11 years or so.

Economists forecast growth of meagre 5% in the upcoming year. A massive hit of 0.3-0.5% in the GDP is on the charts. Breaking down which, we are likely to witness a massive financial and operational breakdown in industries across the nation.

 

Here are some major sectors that are facing the wrath of Coronavirus outbreak:

1) Hospitality Industry

Impact Of Coronavirus Outbreak

Overview:

There has been a major blow to the hospitality industry due to the numerous travel restrictions and growing paranoia cursed by the coronavirus outbreak.  From hotels taking up a difficult stance, flights halted, cruise ships quarantined and lockdown imposed withing the majority of cities across the nation, this sector is inevitably taking the worst of impacts.

Breakdown:

The restaurant businesses, which stand at a value point of 4,23,865 crores as of now is likely to cut short to 50% of this number. The aviation sector is the second most impacted region, with over 900 international and around 100 domestic flights being halted, the industry might be looking at an 11,000 crores gap in their revenue structure.

Conclusive Coronavirus Impact:

More agencies working on these numbers state that around 38 million people are likely to lose employment in this sector, making the economic impact deeper than just numbers and monetary losses.

 

 

2) Real Estate

Real Estate While Coronavirus Outbreak

Overview:

The next big coronavirus impact has been surfaced by the Real Estate sector. People afraid to invest in anything right now are unwilling to move out of the comfortable bubble they are in right now. Coworking spaces, that fall in the same bucket with a difference of workspaces rather than homes, are largely the victims of this phenomenon.

Irrespective of commercial or housing centric real estate sectors, this season has seen the biggest fall in the recent memory. Given the auspicious months of Navratris and other sects of beliefs working for decisions by potential buyers, the coronavirus outbreak has struck a massive blow to it.

Breakdown:

Developers are focusing on completion of existing projects rather than new launches in these times of peril. A fall of 15-20% on the same can be expected by the analysts this festive season. And since most of the buyers hail from working classes, who are now uncertain about their jobs, the concern seems to stay for a longer time than expected.

Conclusive Coronavirus Impact:

Due to the coronavirus outbreak, a sudden fall in inquiries can be seen. And which if nothing is a direct impact on the real estate sector. Whereas sections of this industry like coworking spaces are readily working towards a sustainable solution, the other parts are still under the sword lifted high.

 

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3) Banking

Coronavirus Impact on banking in India

Overview:

Banking, another essential part of any economy, in an alarming situation due to the Coronavirus outbreak. With restrictions on operations, lockdowns of general trade and movement, the banking industry falls right in the course of disaster.

With individuals sceptical of a major meltdown in the upcoming months, they are even refraining from a number of banking operations as well. Which is by far affecting the revenue-generating mechanisms at play. And amid these times when a widespread virus outbreak is likely, people have lost trust in such institutions for the time being.

Breakdown:

Given the coronavirus pandemic and its uncertainties wafting in the economic world, trade has come to a halt. Subsequently, those who were unaware of this eventuality and who had taken credit from these banks and which is quite normal to any trade-specific operation are likely to turn into bad loans or non-performing assets (NPA) in the near future. Also, given the financial year completion right at the doorstep, there’s very less that can be done to counter the impact.

Conclusive Coronavirus Impact:

Coronavirus is not only a killer syndrome to the people, but to the economies around the world as well. And it may not be evident right away, but the shockwaves would be visible upon the banking sector in the aftermath.

With logistics, trade, e-commerce, travel and a number of industries taking a direct hit as a consequence of mass quarantine, the downfall of Banking is what shall lay as the tombstone of an economic calamity in India.

 

4) Ecommerce

Ecommerce During Coronavirus Outbreak

Overview:

E-commerce, an industry touted to be the future backbone of many economies across the globe, is also trapped in the spirals of Coronavirus outbreak. And even when FMCG platforms are under the radar of scepticism and paranoia. People afraid to keep any contact with the outer-world or communities, there is a substantial spike in this industry.

A blessing in disguise for this sector or a sadistic opportunity, eCommerce platforms like Flipkart, Amazon, etc. have witnessed a 30% hike in the orders since Quarantine has emerged as the only plausible solution to the coronavirus outbreak.

Breakup:

According to eCommerce industry leaders, the credit goes to Coronavirus paranoia that people are unwilling to step out and are resorting to e-portals for buying essential commodities. A substantial hike in new users at online grocery suppliers like BigBasket, Grofers, etc. can be seen. The sales of sanitizers, face masks and other toiletries have exponentiated 10 folds within the previous 15 days.

Online streaming services like Netflix and Amazon Prime are expecting double the business expected this year. So in a word or two, the impact is huge but for the good of the eCommerce industry in India and globally.

Conclusive Coronavirus Impact:

All in all, it’s a golden opportunity for the eCommerce industry during the Coronavirus outbreak in India. It’s time for them to build long-lasting trust and relationship with Indian masses, by only helping and contributing to the efforts put in by the authorities and the general public in breaking the chain of this contagious calamity.

 

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5) Marketing & IT

Marketing sector during coronavirus outbreak

Overview:

Given the coronavirus outbreak is affecting majorly every sector in the world, business houses serving IT and marketing solutions are similarly in the loop. When the clients are not making money, their spend mechanism has come to a halt as well. Eventually impacting the IT and marketing sectors globally and the Indian IT and marketing houses are equally under stress.

Breakup:

A clear cut assumption or an analysis of Coronavirus impact on marketing would be premature as of now, but things and consequences can be foreseen. Tough times are waiting for us ahead. If the outbreak continues with the same vigour and pace, these industries would take more than just a contradictory belief to sail through the rough seas.

Conclusive Coronavirus Impact:

Marketing & IT, being non-essentials of any economy get the least of leeway when it comes to getting relaxation from any economic stress. In the aftermath, getting these sectors back on track would be a tough nut to crack. Getting along with the calamity is one thing and coping back to the former stance in the market is going to be a whole new ball game.

 

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6) Media & Entertainment

Media & Entertainment During Coronavirus Outbreak

Overview:

With coronavirus outbreak sending ripples across the various business sectors of the world, media & entertainment are counting days for this to pass by. With stadiums empty, movie theatres shut, advertising costs reaping out zero numbers, the matter is of grave concern by now.

Painting a dull picture ahead, reports state that the entertainment industry of India, Bollywood, is to take a hit of more than 10-20 lacs per week, without earning a single penny.

Breakup:

With the shutdowns and lockdowns in process, the percentage of losses is likely to hit more than 50% of the media and entertainment industry. While online streaming is making the most of these times, the offline modes and concepts are far from any sigh of relief.

With recent occupancy of theatres with a capacity of 800-1000 seats falling down to 10-12 per cent, the number is expected to fall more drastically in the upcoming days. Given the current turn of events with section 144 imposed at the major entertainment hubs of our nation, even the performing arts industry is facing the guns as well.

Conclusive Coronavirus Impact:

Relaxation is far from even being expected right now. The stormy weather may take days, weeks and maybe months to clear out. Uncertainty around coronavirus is one of the key contributors to the panic situation among the targeted audience. And until this is contained and controlled globally, the paranoia will increasingly affect this sector on a rigorous note.

 

Coronavirus Outbreak has impacted economies across the globe. Coping mechanisms are put into play, but these are making hardly any difference to the pertaining situation. Lack of understanding and controversial facts about its lasting after-effects make matters worse. Post to it, what’s going to be the fate of the Indian economy is still a question yet to be answered.

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