The corona virus or more commonly known as COVID-19 is a name that will be remembered for a long time to come. It grew up very secretly just to devour the whole world along with killing millions of people. It is one of the deadliest diseases known to man which originated in the Wuhan province of China and spread to over 150 countries. It has affected many economies.
Impact on Indian Businesses in 2020:
As we’ve been witnessing, from the second quarter of 2020, there has been a complete shut-down of all kinds of businesses, because of the lockdown implemented due to the pandemic outbreak.
The impact of COVID – 19 on the economy is very troubling. No one has managed to outrun the ill effects. Economies of more than 100 different countries have been demolished to an extent that, some of them have asked for monetary help from the International Monetary Fund (IMF). Different Business sectors around the world like, Hospitality, Entertainment, Aviation, etc have seen a major destructive impact. Numerous sports events that are National and International such as IPL (Indian Premier League) and the Olympics have been postponed from their regular event time. Many of the schools and colleges have been closed now, for about a year now. The Coronavirus has also disturbed the whole marking which is now resulting in distortion in the functioning of various online businesses or any e-commerce sellers, such as Amazon. There has been a very huge impacting the countries like the USA, Italy, and Spain are suffering the most, reason being their death toll has gone very high.
Impact on Economy:
There has been a big shift in the world’s economic market. And also, the share market has witnessed crashes that went from bad to worst day by day. Manufacturing units, factories, restaurants, pubs, markets, transportation means, supermarkets, malls, universities, and colleges, etc. everything was shut down and are barely surviving to even be maintained. The fear of coronavirus has restricted the movement of individuals and made us live a minimalistic life. People were not even going out to purchase the everyday needs and essentials, and these all were indirectly creating a significant impact on the world economy as a whole. The Organization for Economic Co-operation and Development (OECD)revealed that they had to cut down their expectations from the global growth to 2.4% which was earlier about 2.9%, and warns all of us that it could fall down to as low as 1.5%.
India, as an economy is facing a huge downfall in government revenues and growth of the income for at least two more quarters, will be continued because the coronavirus has made an impact on the economic activity of the country as a whole. A decline in the investor sentiments impacts the privatization plans of the government and other various industries.
The lockdown in India will have a significant impact on the economy, majorly on the consumer baskets (Consumptions) which is one of the biggest components of GDP.