How the Coronavirus Could Affect the Market

How the Coronavirus Could Affect the Market

The Wuhan coronavirus pandemic not only affected the people in terms of health, but it also disrupted the country economically. The daily routines & activities are at stack. Companies ranging from MNC’s to startups are going to affect.

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Coronavirus Vs Market

Coronavirus Vs Imports from China

Since, our country is spending too much on China products for things like mobile phones, pharmaceutical APIs, Cars & its spare parts. The people associated with these companies are most affected. Our country is importing 90% of mobile phones, 70% Pharmaceutical ingredients, 40% electric goods & 35% spare parts from china.

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Coronavirus vs imports from china

Coronavirus: Sectorwise Market Analysis

Electric goods like ACs, Air coolers & Refrigerators market will be on peaks from March to May end. But with a sudden outbreak of coronavirus the shop owners, distributors and the manufacturing companies associated with this is going to face a big market dropdown.

The real estate field is at an all-time low due to coronavirus, new launches & construction activities have come to a halt. Steel, heavy machinery & other raw materials are heavily dependent on a Chinese import. Since there are restrictions on social gathering the daily wage laborers are struggling to make their ends meet.

Pharmaceutical raw materials & chemicals may face supply-chain issues & prices will go up by 10%. Since most of the API’s and bulk drug products are imported from China. Due to Trade regulations on imports & exports, drug manufacturing is going to effect on a large scale with coronavirus.

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Market Dropdown Due to Coronavirus

Automobile companies across the country closed their doors as a part of the shutdown. So, with this 50 lakh crores business is at stake with 10 lakh employees facing an unprecedented crisis due to coronavirus.

The textile industry is also going to face 13 lakh crores loss because of coronavirus. 65-70% of women employees, 50 lakh drivers who are associated with this industry have to face the consequences due to coronavirus.

The Gems & Jewellery industry has also lost its shine completely due to coronavirus. The loss will be 80 lakh crores since the sales are down by 90%. The employment in this industry is going for 60% of job cut downs because of coronavirus.

With travel restrictions being imposed, Hospitality, Tourism & traveling industry is currently the most affected sector with coronavirus. Hotels, Airlines, Road transport, Cab drivers, and Private vehicle owners are just a few sectors that suffer the most immediate repercussions due to coronavirus.

Travel & Tourism accounts for 8.1% of the total employment. India’s aviation sector will report losses over Rs 8,200 crores in the coming quarter as international and domestic flights stay grounded due to coronavirus lockdown.

Poultry, Meat & Fish industry is witnessing a 60% decrease in sales due to the baseless rumors, doing rounds on social media (to stay away from non-veg food). It may take several months for this industry to bounce back.

The IT industry is going to witness a loss of $185 billion due to coronavirus. The IT sector is going to fall by 5-10% & many people are going to lose their employment. Small companies & startup companies are the most affected due to coronavirus.

IT service management companies claim that 50% of the companies in India don’t have enough resources for employees to work at home. Most of the companies are adopting Skype & Zoom apps to work remotely. Most of the companies have suspended or canceled all the business trips.

Coronavirus vs Employees

According to various reports, casual labor makes up to 16% of all workers in urban areas. Self-employed workers stand at 38%, while 47% are regular wage workers. So, this section of people is likely to hit hard because of coronavirus where economic activity dips sharply.

The unorganized sector like Small and marginal farmers, landless agricultural laborers, sharecroppers, fishermen, those engaged in animal husbandry, tobacco workers, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in sawmills, oil mills, etc. comes under this category. The situation of these laborers, temporary workers, falling in this unorganized sector is inexplicable.

Coronavirus vs Alcohol

The revenue of the liquor market in India was more than 87 billion dollars in 2019. With the sudden shut down of the wine market due to coronavirus, the business of the alcohol industry and taxes accounted for the excise department is facing a huge loss. Alcohol withdrawal cases are on the rise due to alcohol addiction. Suicidal tendencies, mental disorders & Depression is making people admit to psychiatric hospitals irrespective of coronavirus.

Sectors witnessing Profits

Unlike most sectors, FMCG is a big gainer during the coronavirus pandemic. Panic buying has increased consumption in the FMCG sector across the country. People are rushing to buy Milk, Rice, Atta, Oil & essential products due to sudden lockdown.

Personal care products like soaps, hands wash, and sanitizer market are on all-time high and bringing profits to the manufactures. Since the use of personal care products has increased shortage of these products is witnessing. E-commerce platforms have been complaining of running out of stocks of necessities especially products such as hand wash and hand sanitizers.

Subscriptions to online platforms and media apps have seen a rise. Since the cinema halls & multiplexes are closed. The average time of mobile usage has increased by 60% and the telecom industry is showing a steep increase in market share.

If this situation deteriorates, even more, the job recession will hit the rock bottom for sure. Companies, especially corporate ones, should stand for their employees. If a country is facing an economic crisis just for 1 month everything is going out of place. People who depend on monthly & especially daily wage laborers are most affected.

Steps to protect the Market

Psychologically we should prepare for the next 3 months or more to face coronavirus. Startups and skilled employees should take care & safeguard to save against bankruptcy. People should learn to stay on minimum use.

Control the Wastage of food, Credit cards & loans usage should go back to basics. Spending on liquor & luxury goods should be under check. Power consumption, water usage & time utilizing on the internet should be strongly reduced.

India is still a developing country and we are trying hard to increase our GDP & Economic standards, but with this sudden economic breakdown, the growth rate is going to decelerate at a record rate. When the GDP declines, the economy is described as being in a recession. Extraordinary measures & packages are required to take care of future generations.

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Coronavirus vs Health Department

The Health Department & Research Department should be properly funded to fight against future outbreaks. Within India movement & make in India movement should be given priority. If we continue producing & manufacturing the things within the country, there are high chances for new employment & dependency on other countries will come to an end in a lot of sectors.

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