Sector Wise Impact on Indian Economy caused by Covid-19
Biplab Das, INN/West Bengal, @Biplaboriginal
This Corona Virus has decelerated the economy of the world and Indian Economy is also disordered to a great Extend. The coincidence also stands that Corona has been led to the world epidemic during the Financial Year end (March2020).
This Decelerate faced by the economy, constitute of many sectors which has been facing them and would require time and assistance to stand back at its place once again.
Some of the sectors that stand to be highly impacted are as follows:
Chemical Industry: Some chemical plants have been shut down in China, which has led to restrictions on shipments/logistics. It was found that 20% of the production has been impacted due to the disruption of Supply of raw material.
For instance, China is a major supplier of Indigo that is required for denims, and has also been trodden due to Covid-19. Business in India is likely to get affected so people securing their supplies.
However, it is an opportunity for US to try and diversify their markets. Some of the business can be diverted to India which can also be taken as an huge advantage.
Shipping Industry: Corona virus outbreak has impacted the business of cargo movement service providers. As per the sources, per day per vessel has declined by more than 75-80% in dry bulk trade.
Auto Industry: Its impact on Indian companies will vary and depend upon the extent of the business with China. China’s business no doubt is affected.
However, current levels of the inventory seem not to be sufficient for the Indian industry. If the shutdown in India continues then it is expected to result in an 8-10% contraction of Auto manufacturing in 2020.
Pharmaceuticals Industry: Despite being one of the top formulations of drug exporters in the world, the pharma industry of India relies heavily on import as of bulk drugs. Due to the corona virus outbreak, it will also be impacted.
Textiles Industry: Due to corona virus outbreak, several garments/textile factories in China have halted operations that in turn affecting the exports of fabric, yarn and other raw materials from India.
Solar Power Sector: Indian developers may face some shortfall of raw materials needed in solar panels/cells and limited stocks from China.
These are some of the Sectors that have been affected and caused a downfall in the Economy and would require time to stand back and return to normalcy.