LOCKDOWN IMPACT ON BUSINESS/INDUSTRIES

The Emerging Impact on Business/Industries due to Nationwide Lockdown

For getting knowledge about impact on industries and businesses because of lockdown due to covid-19 (coronavirus), we should have knowledge about Covid-19 and lockdown. So, here is something important about covid-19 and lockdown.

COVID-19: In December 2019, a virus outbreak was reported in Wuhan, China which is known as the covid-19 (coronavirus) by the World Health Organization (WHO). Till 13th April 2020, there have been atleast 18,72,073 confirmed cases and 1,16,098 confirmed deaths in the coronavirus pneumonia pandemic. This is viral transmission to humans. This pandemic has resulted in travel restrictions and nationwide lockdowns in several countries. If we talk about Government of India is taking all necessary steps to face challenge and threat posed by the growing pandemic of Covid-19. With the support of people of India, we are able to control that virus in our country. The most thing which is very important is that the right information should be given to the citizens and taking precautions as per the advisories. The covid-19 can be more understandable with the help of video whose weblink is:

Weblink: https://youtu.be/_UOvPrPoY-s

The first case entered in India on 30^th January,2020. Covid-19 cases rise to 10,815 in India, from which 358 deaths take place till 14^th April, 2020.

LOCKDOWN: A lockdown is an emergency protocol that usually prevents people or information from leaving an area. In simple words, a lockdown means that doors leading outside are locked such that no person may enter or exit.

Types of Lockdown: There are many types of lockdowns which are as follows:

-Preventive Lockdown (To preempt any danger to ensure safety and security of people)

-Emergency Lockdown (Imminent threat to lives or risk of injury to humans).

On March 24, 2020 Prime Minister Narendra Modi announced that as a result of the covid-19 outbreak, which has been declared as a pandemic by WHO, India will be under lockdown for 21 days from March 25 midnight.

As the nation battle is to control the spreading of the virus. And on 14 April, 2020 Modi ji announced that lockdown to be extended for 19 days from 15 April to 3^rd of May.

LOCKDOWN IMPACT ON BUSINESS/INDUSTRIES

Due to pandemic Covid-19, India has to face loss of around Rs. 9 Lakh Crore. Finance Minister Nirmala Sitharaman said the government was preparing a stimulus package and the same was awaiting a few procedural clearances. Business Activity has to face great loss due to coronavirus pandemic push governments to shut down shutters, from shops to shops, from factories to restaurants. `` It`s clear that the economy is contracting more quickly than ever before during peacetime.`` The data indicated the economy was already contracting at an annualized rate approaching 10% and warned worse was to come in the near future. The impact of lockdown can be seen in videolink which is as follows:

Videolink: https://youtu.be/SqKQWK2YCxU

Different types of business sectors are impacting due to coronavirus, some of them can be explained as follows.

India`s Exhibition Sector: This sector has lost an estimated Rs.3,570 Crore due to lockdown. Since the outbreak of the Covid-19 pandemic, the impact on exhibiting and trade shows industry has national events being postponed or cancelled in the country, IEIA ( Indian Exhibitions Industry Association) said in a statement.

The Domestic Manufacturing Industry: Towards this end, the domestic manufacturing industry is preparing to resume operations when the lockdown ends, firms are focusing on bringing production back to the pre- lockdown levels like, Jindal Steel and Power(JSPL), which has been working at full capacity despite the lockdown, is exporting 80% of its production through Dharma, Paradip, Vizag and Gopalpur which remains functional. It sees logistics as a big hurdle. In the coming months, the whole world will look towards India as the alternate manufacturing hub. The world have realized there over dependence on China is costing them dear. Sectors like autos and pharmaceuticals were impacted due to shortage of imported components.

The Sensex Benchmarks: Due to covid-19 cases are rises in world, the world has started witnessing second round effects of the virus spread, a complete halt to economic activity. The coronavirus outbreak have already wiped off Rs.52 lakh crore worth of equity investor wealth, the benchmarks Sensex and Nifty facing at multi year lows after falling 35% from their January peaks. The quarterly GDP growth has consistently fallen. The growth rate is deducted from 8% to 5.6%.

The Textile Industry: The virus that started in China`s Wuhan has now affected almost all parts of world including United States, India, European nations. The demand for textile products have come down due to panic situation created by covid-19 outbreak. The business community is scared on account of cash crunch, supply chain disturbance and manpower related issues. The daily wage worker who forms 80% of workplace in garment factories is on roads or back in his hometown.

The FMCG Products: FMCG will be more resilient than other sectors and should bounce back faster, and within FMCG, consumer staples should recover faster than discretionary items.

Chemicals: The units in India are heavily dependent on imports of several raw materials, including chemicals. Nearly 20 percent of the production has been impacted due to the disruption in raw material supply.

Electronics: China is a major supplier of raw materials used in electronics industry. India`s electronics industry is fearing supply disruptions, production reduction, impact on product prices.

Information Technology: IT companies are heavily dependent on manpower and are not able to restriction in movement of people arising from lockdown and quartine issues.

Some other industries are auto, pharma, solar power, shipping, tourism and aviation.

The sectors which have benefits due to covid-19 are:

-Cloud Computing

-Web Services

-Video Conferencing and collaborations

-Zoom Video communications

-Electronics payments

-Ecommerce

-Savvy corporate

Telecommunication industry.