The Great Depression was the last incident which comes in the mind which wedged the economy of the entire world and now with Covid 19 outbreak, the robust economies of the globe are grappling to survive with the current scenario in the stir of an unmatched demand jolt and a cessation of all significant financial deeds that drive development and growth. As the Coronavirus hovers the global evolution, the condition remained miserable, imposing the government of countries across, to take the necessary steps to spread the pandemic in the form of lockdown. India too have executed the most restraining mass isolation.
Although the lockdown is a great move to restrict the radical effects of the Covid 19, but it has incapacitated businesses across various segments and the economy. United States being the world’s strongest economy has stated an enormous number of job loss due to coronavirus outbreak. The Global rating agency has nosedived India’s GDP prognosis for the FY 2021 to 0.8%. The surging effects of coronavirus lockdown has distressed the economy of the country, toppling the business and market, the pandemic has been a big shock to the nation. Last couple of years many sectors were already incurring major losses but the current scenario has crippled their condition to the extreme. The outbreak of the deadly virus has not only augmented the predicament but also ruined the industries who were excelling. Major segments that contribute towards a large portion of India’s GDP have been fully or moderately out of work. The experts say that the unparalleled lockdown is categorized as a long term concern, mentioning improbabilities in the post lockdown scenario. There are major concerns like lack of jobs, loss of salary, suicides are being recorded on regular basis from such industries. Several segments requested the government to ease off some restraints or they can recommence business so that they can give salaries to their employees and pay rents. Harsh restrictions, isolation and constraints which lead to closure of the businesses and it remains ambiguous when the life will get back to normalcy. Here are 5 industries which have suffered the most amidst this lockdown:
TRAVEL & TOURISM INDUSTRY PARALYZED
The contribution of travel and tourism industry to economy is around 10 % of the GDP. The industry came to a smash when WHO declared the novel coronavirus as pandemic and it may not be an exaggeration to state that the entire revenue generated from the same will shrink to a hideously insignificant number until the vaccination of Covid 19 comes. The industry has been adversely impacted since the announcement of lockdown in March-end and this is the first time in the history of the travel business witnessing such a scenario due to the interruption of operations.
The vital aviation industry that links nation across the globe is experiencing a burst in pay cuts and sackings. People are forced to go on unpaid leaves as airlines proclaiming operational pressure extends in the wake of the pandemic. With an exemption to cargo and deportation special flights, the airports are widely empty. The demand post lock down will be repressed due to commercial disruption and the growth will be drastically unhurried or even undesirable. It is very likely that after the lockdown is lifted the situation of the aviation sector will remain status quo and there will be unrest, lack of consumer confidence and apprehensions about persistent outbreaks of Covid 19, if the travel insurance providers decline to provide medical cover or travel expenses or travel interruption costs.
The Indian entertainment sector is facing huge loss as shootings are stalled due to large gatherings, promotional events can trigger the spread of the pandemic. A theatre closure like this has never happened in the past except for few days amidst 1984 riots in the nation. Concerts, art galleries, music festivals have suffered tremendous jolt due the current scenario. A TV serial actor committed suicide due to financial crunch as he was unable to pay his expenses. Background dancers, workers who are an essential part of the industry are running out of cash. Although it is hard to evaluate the losses but there are many incidental expenses.
Almost all MSME sectors – Micro, Small, Medium Enterprises are choking because of the impeding outbreak. They are the pillar of all economy segment in India and deals into export and manufacturing industries. A majority of small units may never see the light again in the future. The people belonging to MSME sector has appealed government to induce its relief deal. The global supply chain has come to a cessation; the business is downcast, production is stopped and the market is stormy. As the financial condition of the economy has dropped, the MSME sectors are contending issues like lack of liquidity, cash flow and absence of manpower.
The manufacturing activity has been stopped which has led to a steep downfall in production and trade. Major units are shutdown, the giant companies have declared pay cuts and awaiting the reopening of dealerships. Mr. RC Bhargava, the chairman of Maruti Suzuki told in an interview to India Today TV that the automobile segment is dependent on MSME industries who manufacture main components which is required for manufacturing a vehicle. He persuaded the government to allow a few dealerships to restart public dealings.