- India’s $ 348 million business may be affected
- Sluggish Indian economy may be hit by a sharp recession
The world is undergoing lockdown due to coronavirus. According to AFP report, 900 million people from around 35 countries globally have created social distance. According to a report by the United National Conference on Trade and Development (UNCTAD), coronavirus can cause a loss of $ 1 to 2 trillion in 2020 to the global economy. At the same time, India’s business of $ 348 million could be affected.
40 million daily roars of the country most affected
Of the total workforce of India, 93 per cent i.e. around 400 million people mainly come from temporary sector while about 93 million people get seasonal employment. All these workers are suffering due to coronavirus. According to Jindal Global Law School, 75% people are self-employed when it comes to temporary employment in India, that is, rickshaws, carpenters, plumber workers. These workers do not get the benefits of paid leave, medical facilities.
The biggest impact on MSME sector
According to researcher Rakesh Shukla, daily wage laborers are suffering the most due to coronavirus. Around 25 to 30 per cent of the people in urban areas wage daily wages.
The country’s 75 million MSMEs are the engines of growth for the Indian economy, creating around 180 million jobs. It also speeds up the economy by about $ 1183 billion. Out of this only 7 million MSMEs are registered.
The National Restaurant Association of India (NRAI) has proposed to close more than 5 lakh restaurants by 31 March. Because of this, temporary employees working in restaurants have been sent on leave without pay.
According to the Event and Entertainment Management Association, all events have been banned due to coronaviruses. This is affecting the business of about 3000 crores rupees.
According to app based cab operators like Ola Uber, there is a 50% reduction in ride demand. Let us inform you that Ola Uber has stopped its shared service due to low demand. Apart from this, car showrooms and rental stores are also suffering heavy losses.
According to the Inventiva report, there is a decrease in the working speed of the working force in India, which is at the low level of the last 10 to 12 months. The founder of Olive Group, AD Singh, says that the past week has been a serious challenge for the industry. According to Singh, business was going well in his 30 restaurants in South Mumbai till Holi. But due to coronavirus, people have stopped coming.
Sluggish Indian economy may come in the grip of the severe recession. Before the Corona virus, the Indian economy was going through an economic downturn, but due to coronavirus, now the Indian economy may be in recession and its worst form. The NSO estimated that the economy’s growth rate could be 5% in 2019-20, the worst situation in 11 years. The unemployment rate is going through the worst phase of 45 years. The economy could not catch pace even due to the demonetisation of 2016 and the implementation of GST. Due to unemployment, low income and poor farming conditions, the country saw a decrease in consumer sentiment and demand.
According to Crisil’s report, the average savings and debt of every household in India
|2012||23.6 percent||8.7 percent|
|2018||18.2 percent||18.5 percent|