The world seemed invincible just a few months ago, especially India, like many countries in Asia was growing without a stop for decades. Although it seemed like the growth rate might have had a slump during the recent past, the economy was still on its way to record 5 percent growth.
With the middle class growing all over and the poverty rate seeing a decline, health indicators were uniformly increasing everywhere. The world seemed like a rosy place to be until #coronavirus (#COVID-19) hailing from Wuhan city in Hubei province, China, decided to change the trajectory of the global economy. This virus, which is capable of spreading through human droplets, has spread across 199 countries as of today affecting 1,224,938 people approximately, killing 66,502 approximately till today (April 5th, 2020).
In order to reduce the extent of calamity that might be caused because of the #coronavirus pandemic, many countries including India, have completely locked down the borders. This lockdown is not just limited to inter-country travel but also covers interstate, intercity and interarea travel as well. This directly affects many companies in the travel, food and aviation industries. All modes of transport departments (air, water and road) will be under huge fiscal pressure as they will have to forgo their revenue for the days the country is under lockdown. This not only will affect the tourism industry, on the whole, but also the service industries such as events and weddings in India which is one of the biggest in the world. The taxes and revenue that, in turn, generated from these businesses will also be massively impacted. Furthermore, when we focus on the organised and unorganized employment sectors, these industries that recruit people on a daily wage basis will be forced to announce layoffs resulting in underprivileged people losing their jobs in large numbers (Please do watch the video on how India’s coronavirus lockdown is affecting its underprivileged citizens; at the bottom of the post).
The indirect effects of the #coronavirus on the world economy with the necessary lockdowns to curb it are innumerable. Almost all sectors will have a huge impact on their growth which will also vastly affect even an individual’s pocket. Many global economic institutes have projected that this situation will impact the global economy much worse than the banking crisis in 2008 – some have even projected that the world economy might shrink as much as 1 percent. India which was previously said to have had a growth rate of a decent 4.5 percent has been projected to grow only by 2.5 percent, which might still go down if the crisis lasts longer than expected.
The Paris-based OECD, an advisor for developed economies on economic policies quoted, “the global economy has become substantially more interconnected, and China plays a far greater role in global output, trade, tourism and commodity markets”. China which was the first to get affected by the virus is seeing huge losses in terms of growth this year already and because of the lockdowns of factories, the Asian market and the markets around the world that depends on Chinese manufacturing has seen huge losses even before the virus started spreading into their countries.
How India’s coronavirus lockdown is affecting its underprevileged citizens – Source; Guardian News
About the Author: Varsha Kumar is the Managing Consultant at Wiz For Biz Creative and has worked with over 20+ Brands all over the world. MBA holder with 5 years of International Banking and IT Experience – worked with over 6 plus start-ups (Start-Up Accelerator, Lifestyle, Education, Audits and Compliances, Multimedia solutions and Branding agencies) as a marketing consultant and an advisor – also assisted companies in terms of Market Research and Venture Capital Raising aspects (Competitor Profiling, Pitch Deck Preparations, Presentations, Marketing Strategies and Business Plans).
Extensive understanding of marketing and brand objectives, consumer needs, and the value of effective communication – Strong communication and presentation skills with up-to-date knowledge on the current market trends
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