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Writer's pictureThe Megon

ECONOMIC IMPACT OF COVID-19 PANDEMIC: INDIA 


The coronavirus declared as a pandemic by WHO on 30th of Jan 2020 has caused a humanitarian crisis, and it won't be wrong to say that we are in the midst of a war maybe the worst kind that human kind has ever experienced, infiltrating and piercing through every aspect of public and private spaces of our lives. Threatening the very existence of human life physically and socially. Creating heightened levels of anxiety it is not only a threat to our physical health but is also hazardous to our mental health.

For countries with significant levels of poverty, economic crisis can be disastrous. It has impacted our economy, making it vulnerable and causing deep economic harm which might reverse the gains made in the industrial economy over many decades. It has impacted almost every sphere of our lives that were considered eminent and as the normal way of living. Religious spaces are considered as restricted zone in the crises stricken new normal. Educational institutions are listed among the non-essential services in the new normal. Everyone in every field is already thinking and moving towards making imaginative, effective and innovative work plan to accommodate the new norms of the current society inflicted with crises.

Various sources give us a grim report on the estimated economic losses because of the COVID-19 pandemic. The National Restaurants Association of India (NRAI) has predicted an estimated loss of Rupees 80,000 crores for the F&B industry by the end of May 2020. The association has also stated that over 7 million people who were dependent on the food & beverage industry have already lost their jobs.

The Indian aviation industry with revenue loss of Rs.24000 crores to 25000 crores could lead to a loss of about 20 lakh jobs, according to the International Air Transport Association (IATA).  Apex sectorial body Federation of Associations in Indian Tourism & Hospitality (FAITH) on Monday doubled its loss guidance for India's tourism sector to Rs 10 lakh crore. The Covid-19 pandemic, the country’s travel and hospitality industry is staring at a Rs 5-trillion revenue loss over the next year while 35-40 million jobs, both direct and indirect, are in jeopardy. Estimated 100 million and more Indian jobs are at risk after COVID-19 Lockdown. Joint nationwide survey of businesses conducted by FICCI and Dhruva Advisors saw participation from almost 380 companies from across sectors and has thrown up some very important results and insights that should be useful for the policymakers as they plan for the next steps of their integrated approach to support Indian industry.

Economic loss and crises will lead to higher rates of unemployment and the consequent social misery. Hope government will introduce a series of effective measures to support and ensure business continuity to support and protect people, jobs and enterprises.

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