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The outbreak of Coronavirus happened in China but it has infected more than 198 countries to date. With every passing day, people around the world are losing their lives and the quality of life is also degrading. The increase in depletion of economy and resources and the inadequate supply chain has resulted in the decline of business opportunities globally.
Fluctuation in the stock market has adversely affected the buying and selling of market shares and investments. In this article, we will learn about the impact of coronavirus on Indian as well as the global business and economy.
Getting into the actual picture
Considering the recent impact it is speculated that the payment has staggered the world economy to the amount of $1 trillion. The gap is further widened with social distancing and lockdown that has not only affected startups or SMEs but also daily workers. Interruption in the supply chain has hit almost every industry and stock markets have been on a continuous slide since the end of January.
‘Between 10th January and 16th March the European, Hong Kong, US, and Indian stock markets went through major losses.
The impact of coronavirus is not just limited to a few sectors in India or globally, but it is equally evident in the stakeholder industry as well. Considering the white-collar and blue-collar industry, the negative impact of the pandemic is transparent now. Few major stock exchanges including FTSE, NYSE, Sensex, Nikkei, Die Jones, Hang Seng have witnessed a decline of more than 25% out of which the worst impacted is BSE Sensex which had to bear 10.2K that led to a 25% decline.
This is evidence that the global economic balance has shifted from stability to an uncertain phase, out of which global agencies are propounding to alert for the worst.
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A large number of global or local agencies are uncertain about the pandemic and its economic devastation over the places. India has potentially gone through a 33-day lockdown in order to overcome the increase in coronavirus carriers.
It has resulted in a compromised financial structure, especially with the 2021 year. Later, the finance minister of India, Smt. Nirmala Sitharaman made a statement and announced a package worth $23 billion for cushioning the shortcomings.
In India, the GTP is already at its low out of which any further economic output is most likely to bring a storm for the workers who have lately seen erode in their daily wages. On the transportation front, there is no passenger shift because of no passengers.
It has resulted in the cancellation of more than 200,000 flights all across the world. In IT, in spite of the work from home strategy IT professionals are dealing with a lot of headaches. It has limited the need to Hire Magento developer or similar experts. Let us go through the sector-wise impact of the virus in Indian business industries-
- CHEMICAL INDUSTRY- some of the major chemical plants in China shut down with the restrictions of logistics. It has affected various chemical industries in India, the United States, and European markets
- SHOPPING INDUSTRY: The global pandemic had an impact on cargo service providers as well. As per the reports, per day per vessel has reduced to more than 70% in the dry bulk industry
- AUTOMOBILE INDUSTRY: If China shuts down its automobile sector then it is predicted to result in more than 8% contraction of Indian automobile manufacturing.
- PHARMACEUTICAL INDUSTRY: India being the chief drug exporter in the world is highly dependent on importing drugs in bulk from other countries. Coronavirus outbreak has severely affected the pharmaceutical industry.
- TEXTILE INDUSTRY: Various garment and textile factories located in China have significantly halted the operation which has affected the export of fabric, raw materials, and yarn from India
- SOLAR ENERGY INDUSTRY: The professionals of this industry are facing a shortage of raw materials required in solar panels or cells.
"WHO has been assessing this outbreak around the clock and we are deeply concerned both by the alarming levels of spread and severity, and by the alarming levels of inaction"-
Ultimate emergence of the global pandemic
The geographical regions experiencing cases of Coronavirus have adopted different approaches in order to slow down its spread. Few countries have tested extensively along with limiting travel and community gatherings, encouraging social distancing, carrying out contact tracing, quarantining citizens, and so on. Some countries have implemented total lockdown for curfew in the hot spots in order to control the infection rates.
- CRASH IN OIL PRICES: Global demand for oil has almost dried up with the lockdown because a maximum number of people are sitting at their homes. Crude oil prices have been down since the pandemic began and it has dipped to $20 which is already at its lowest level since the last 18 years. It has compromised the economy of countries dealing with crude oil business.
- LIMITING IN TRAVEL INDUSTRY: The travel industry is badly hit with the pandemic and airlines are cutting their flights and canceling business trips and holidays. The airline industry all across the globe has taken a huge hit from the virus.
- FACTORIES ARE SHUT: The countries where the virus has spread its roots have almost shut their sales, production, and investment in the last few months. China being the largest exporter of goods in the world has a variety of restrictions on manufacturing at present. The sales in automobiles have also dropped heavily in the last few months.
In spite of all the hurdles, it is speculated that the businesses that will invest in the financial resilience and strategic or optional development and global market is likely to be positioned better and recover well.
As global exporters are in a state of turmoil because of the drop in their sales and investment, the global effects are still subjected to depend upon the containment of the virus and alteration in supply chains.
The countries that have controlled the virus to an extent are resuming to normal but to say the least, it can still not be made public when we will witness the normal pace of life.
© 2020 Dharmendra Chahar
Emily Blunt from california - united state on July 22, 2020:
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Swarnika Jain on July 21, 2020:
Very insightful and informative content