This is affecting many sectors of Indian economy including automobile industry, tourism industry, stock market and pharmaceutical companies. Not only the IPL, but big events of the country and the world have also been postponed. The decrease in production in China has also affected India’s trade. Due to this, India’s economy may have to suffer losses of up to $ 348 million. Let’s know how Corona is affecting the Indian economy.
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Tourism business vulnerable to Corona crisis
Corona is also beginning to have an impact on the tourism business as many countries have banned travelers from China and other countries and also Indian economy is affected by the Corona virus. Because of this, a large number of people have started canceling their travel for the coming months. This has been revealed in a survey of local circle.
41 percent of the people surveyed said that they are worried about summer vacation because of Corona crisis, while 72 percent are cautious about it. At the same time, 16 percent of the people believe that in the current circumstances they should not travel because it can affect the virus. Three percent people have no concern about the virus. They believe that the corona virus cannot affect them. 70 percent of the people said that the government should keep a special watch on people coming from China or Singapore in the last 30 days.
According to a press release issued by the Ministry of Health, “Any visas and e-visas issued to citizens of Italy, Iran, South Korea and Japan have been issued on or before 3 March 2020 and those who have not yet entered India All visas are suspended with immediate effect.
According to the International Air Transport Association (IATA), the aviation industry could lose at least $ 63 billion in passenger business. This estimate does not include the loss of freight business.
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SIAM expressed concern, vehicle production will be affected
The Corona virus has started showing an impact on the country’s automobile industry as well. If this is not controlled, a catastrophic situation will arise for the industry and production of all categories of vehicles will be severely affected. The automobile industry body Society of Indian Mobile Manufacturers (SIAM) said on Wednesday that many Indian automobile manufacturers import about 10 per cent of production-related raw materials from China. In such a situation, vehicle production will be severely affected due to the stagnation of raw material supply from there.Vehicle production is also important for Indian economy.
SIAM President Rajan Vadhera said that the Indian auto industry had already accumulated a substantial inventory of components coming from there keeping in mind the Chinese New Year, but the lockdown in China at present is due to the BS-6 standard. The supply of vehicles with emission standards may be affected. All types of passenger vehicles, commercial vehicles, three-wheelers and two-wheelers are also expected to be affected due to the supply of components.
Apart from this, the production of electric vehicles will also be severely affected as the power pack comes from there.
Vadhera said that automakers are exploring options to meet their supply chain demands. But it will take enough time to reach a stable production scale as these components will have to be tested first and imports will be met only if the standard is met. He said that SIAM is in touch with the central government with specific recommendations of the industry. Whatever instructions will be received in this regard will be implemented.
About 37 million people work in India’s automobile industry. The auto industry in India was already a victim of Indian economy slowdown. Now it may be further affected.
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IPL can be lost due to cancellation of about 10000 crores
Considering the current situation, if the BCCI had postponed the entire tournament of IPL, the broadcasters and franchisees could have incurred a loss of at least Rs 3,000 crore. Everyone was aware of this and that is why the owners of some franchisees agreed to have the match in the empty stadium. According to him, only one percent of the people in the stadium watch the match and it would have caused a loss but not that much.
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1.BCCI advances IPL:-
In view of the increasing threat of Corona, several guidelines have been issued by the Government of India and a number of steps have also been taken. After all, the BCCI had no option but to postpone the tournament for a few days.
In view of this, the BCCI on Friday decided to postpone the 13th edition of the IPL for two weeks after much deliberation and agreed to have the tournament scheduled for 15 April instead of 29 March.
However, there are still many questions of franchisees and broadcasters in front of the board, on which an important meeting is to be held on Monday. The meeting is expected to discuss the issues of playing in the empty ground, including the venue, foreign players playing and new dates of the tournament. On Saturday, before this, the IPL Governing Council will also hold an important meeting and discuss some matters.
Loss of thousands of crores
But the BCCI was worried about health, safety as well as Indian economy status. This can be gauged from the fact that there is a possibility of loss of several thousand crores of rupees due to the cancellation of world’s richest cricket league. Not only this, several hundred jobs will also be at stake after the tournament is canceled. In view of all these reasons, BCCI President Sourav Ganguly also said that they are postponing the IPL for the time being.
According to the reports, while eight different franchisees would have incurred a loss of Rs 300-400 crore, the broadcasters, organizers, sponsors would have suffered a huge loss of thousands of crores. Talk about the Indian board, only BCCI would have lost at least Rs 3500 crore.
Apart from this, due to the events being held in different cities, employment in many areas like travel, hotels, transport will also suffer heavy loss. Indirectly, thousands of jobs will also be threatened.
Earthquake in stock market
The Indian stock market also broke all records of decline due to Corona virus. Not only heavily, but the condition of the stock markets around the world is bad. The situation became so bad that on Friday, the Sensex and Nifty had slipped more than 10 percent and due to this, trading had to be stopped. That is, there was no trading in the stock market for some time. Investors could neither buy nor sell shares. This trading stopped for 45 minutes. It is known that when the market falls by 10 percent or more, it starts lower circuit and trading is stopped for some time. If we look at the history of the circuit in the market, for the first time in 12 years, the lower circuit is installed in the market.
The Indian stock market is going through its worst phase. In early trading on Friday, investors lost Rs 12 lakh crore in less than 15 minutes. The market closed on Thursday with a historic decline. Then 11.42 lakh crores of investors were drowned due to the collapse of the stock market.
Not only this, on the first trading day of the week, on Monday, the Sensex-Nifty saw a sharp fall in one day. The assets of the investors in the BSE were then reduced by Rs 6.84 lakh crore.
Not only India, the situation had become so bad this week that trading in the American stock market Dow Jones had to be stopped for 15 minutes. The Dow Jones of America created a history of falls. In 24 hours, markets in 7 countries of the world including India set up a lower circuit. These include the US, Canada, France, Germany, Italy and Russia.
Effect on pharmaceutical companies
Due to the havoc of Corona, there is a shortage of medicines in medical stores. Chemists are ordering in all cities, sanitizers and masks, but they are not getting delivery of goods for a week. Now that many Indians are collecting medicines, sanitizers and masks, these goods are being sold at a price higher than the maximum retail price.
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According to Trade India.com, the largest Indian company in the wholesale online business, the demand for sanitizers and masks has increased by 316 per cent in the last three months. Trade India COO Sandeep Chhetri told the BBC, “India’s manufacturing industry has increased its production manifold to meet this demand. Demand for such other personal protective products is also increasing in India and in the rest of the world. The manufacturing sector is also trying to take advantage of this.
However, in view of the lack of mask and hand sanitizer in the wake of corona virus and the possibility of black market, these have been declared ‘essential items’. These products will remain ‘essential commodities’ till June so that their black market can be curbed and available at affordable prices.
India is the world’s largest exporter of generic drugs. With the cease of production in China, India has taken necessary steps to ban the export of some medicines so that India does not fall short of meeting its requirement. Therefore, the export of paracetamol, vitamins B1, B6 and B12 as well as other APIs and formulations are banned.
IIFA and big celebrations of the world postponed
The IIFA award ceremony to be held in Indore, Madhya Pradesh has been postponed due to the growing effects of the corona virus. So far, no official information has been revealed about the next date of its event. Explain that due to Corona virus, many programs related to politics, sports, technology and many other programs in the world have also been canceled for advance notice.
1.CISF’s Rising Day:-
In the wake of the Corona virus, all central forces canceled the Holi meet. The CISF also postponed the Rasing Day celebrations.
2.PM Modi’s visit to Belgium
Prime Minister Narendra Modi’s visit to Belgium has been postponed due to the threat of Corona virus. Explain that PM Modi was to attend the Indo-European Union Conference in Brussels.
3.BJP’s Holi meeting
PM Modi has postponed the Holi Milan ceremony in view of the increasing impact of the corona virus. At the same time, BJP National President JP Nadda has also written a letter to the presidents of all states and appealed to postpone the Holi meet.
4.Google biggest annual event of the year
In view of the increasing threat of corona, Google also canceled its annual I / O event due to corona virus. It was to be held in California from May 12-14.
5.Facebook and Microsoft’s event
Facebook canceled its F8 Developers Conference due to Corona. At the same time, Microsoft has canceled the MVP Summit to be held in Washington. It was to be held on 15-20 March.
6.Xiaomi’s launch event in India
Chinese smartphone company Xiaomi has canceled its product launch event in India. Let us know that Xiaomi was about to launch the new Redmi Note series in March.
7.Mobile World Congress
The world’s largest phone show Mobile World Congress 2020 has also been canceled due to Corona virus. It was to be held in Barcelona on 24–27 February.
8.Big film and music show canceled in America
Authorities in the city of Austin, Texas have canceled a major film and music show amid growing cases of corona virus in the US. This program named South by Southwest attracts thousands of people from all over the world. Austin Mayor Steve Adler said in a press conference on Friday that he was declaring a local disaster in the city and also issued an order to cancel the program.
9.Effect on jewellery business
After the slowness, the Indian economy has started getting affected due to Corona crisis. The functioning is also being affected. The jewelery and jewelery business is also affected by the Corona virus outbreak. The corona virus is expected to cause a loss of about one and a quarter billion dollars. China and Hong Kong are often the largest centers for India’s polished and polished diamond exports. The virus has had a very bad effect in these countries.
Many people in India are associated with jewelery business, which will have a direct impact on Indian economy.
Many traders have not even received payment from China and Hong Kong. They are trying to contact customers, which is a big challenge for them. Due to non-payment, Indian businessmen are unable to pay even their small suppliers. Because of which people’s money is stuck.