Every fall in the economy can be seen as a new opportunity. The spread of pandemic by Corona virus has made a huge disruption in economic activities, resulted the biggest loss to the global economy in a small period of time. The silver lining of Covid-19 is that it has generated a huge demand of personal hygienic and protective equipment world over. Also there is a high demand of paramedical and cleaning staff. Government quick and pro-active measure may be a game changer for Indian economy.
Corona has made a huge impact round the globe within a very short span of time. No economy, no person, no corporate, no product in fact nothing spare by pandemic of novel corona virus originated in Wuhan province of China in late 2019. Its massive and fast spread all over the world, has compelled the think-tank busy round the clock to find some quick innovative solution at present and also to cope up future conditions as well.
Our discussion, here, is limited to its impact on economy, resulting an opening a new era in world economy where India can play a leading role.
The large number of economic activities, like education, travelling, entertainment, games and sports, tourism, religious, non-religious, political and apolitical meetings and gatherings stopped unexpectedly by the outbreak of Corona virus. People across the world are bound to start thinking on healthcare, lifestyle, food habits, sanitisation, cleaning, social distance maintaining, thank god the advancement in technology make it feasible to a large extent. It seems that the biggest victim of corona virus is the economy, i.e., the livelihood of the people and not the life of people.
Transport sectors irrespective of its nature land, water or air are badly hit by Corona lockdown and other precautionary measures taken by Government. Some of the small operators are already facing cash crunch and may hard hit of bankruptcy in the coming days.
Second big hit of lockdown is hotel industry which has been struggling of slowdown for quite sometime. Big business may turn around with some initial difficulties but the smaller may face difficulties in terms of financial, operational in restarting the operations. Tourism sector which are complimentary to hotel industry is cent percent closed sector and is not seeing re-opening within a quarter or two. The entertainment industry in the form of film industry, small-screen industry, event organising is also following the similar fate. The unemployment de-generated in these sectors is a big concern to the economy.
The restaurant and fast food sector is another big hit of Corona lockdown. The sector is not seen to revive in the near future and has de-generated unemployment for all its employers, employees and suppliers associated with.
A large number of industries are closed under lockdown resulting productions closure, many of them need long time to restart. So a possibility is that there will be a demand – supply gap will cause price rise.
The auto sector has been passing under hard time has now facing a big burnt. Its ancillary industries considered to be a good employment generating, enters into a very grim situation.
Similar condition is noted in realty sector. This sector is also high employment- generating. But the revival of this sector will be a long drawn story in the present scenario.
Though the essential commodities like, food grains, milk, medicine, LPG, vegetables etc. are kept away from lockdown but due to disruption in supply chain make it vulnerable to consumers, farmers and SMEs.
Government need a huge planning to deal with the unusual economic condition along with health care to make it stabilized in a year or two.
Opportunity for Indian Economy
Every fall in the economy can be seen as a new opportunity. A large number of workers have lost their job due to economic lockdown. So a big opportunity in India for labour intensive industries is to expand and exploit the world market. Covid -19 has generated a huge demand of personal hygienic and protective equipment world over. Also there is a high demand of paramedical and cleaning staff. Government is expected to make some reformative measure so that industries working in this sector can expand and also new enterprise may come out.
Pro-environment machineries and equipment those which control or reduce pollution will be at higher demand in the coming days and Indian industries can take this as an opportunity. Some drugs produced by Indian Pharmaceutical industries are already at higher global demand after the outbreak.
More global demand will come out for essential goods as production and supply chain in some developed countries are badly disrupted. More manpower demand will be generated in service sector relating to healthcare. Government need to come out with training and skill development in this sector which can be a large employment generating sector for India.
China is the country from where corona virus originated and the way they have dealt the issue internationally, at the initial stage of its spread, is under suspicion globally. China may have to bear the burden of international loss in the form of export loss in future. This can be seen as an opportunity for Indian industries to flourish their business globally.
(Simranjeet Singh IMBA- Islamic University of science and technology)