With the end of Covid-19, most probably the world will also come to an end. The global economy is badly hit by this pandemic especially the Indian economy. Since COVID-19 presents a unique challenge in India. To cover the losses and come back to normal life will take several years in India. Although corona will end in the future but given the nature of the pandemic, everything is about to change. Its impact and fear will remain in the humans’ minds till last!
The government of India knew about this pandemic (arisen in Wuhan city of China) but could not take the right steps to control this virus in entering India on the right times which results in we all are bearing. The coronavirus pandemic is transforming city life. It is overwhelming hospitals, demolishing commerce, restricting access to public spaces, straining digital infrastructure, intensifying mental health challenges, and forcing people indoors. We are not sure about when we will get the vaccine as it has been almost 8 months vaccine has not been prepared. If in December 2019, the Central government of India imposed restrictions on International flights we might be not faced such worse situations we are facing now. In the absence of a vaccine, many of these disruptions could become permanent.
Toughest Challenge in dealing with this Situation
With operations halted and factories closed, the coronavirus pandemic is not working out to be great for India’s richest man. Many Rich people who were earning from the last 20-40 years have become poor now due to the shutdown of their businesses like owners of various malls and cinema especially Cinepolis whose business relies on film media entertainment houses which have been closed from last 3 months. Even gold Smith, jewelry houses, and banquet halls many more have suffered a huge loss.
Bombay which is known as dream city has totally shaken. Many banks and reputed companies have headquarters in Mumbai. In India, the largest cases are found in Maharashtra especially in Mumbai so all top industries and companies which settled there incurred huge loss and will continue to suffer in upcoming months as we know this virus will not end soon. For the government of India, it is the toughest challenge to tackle and deal with these types of situations.
The impact of Corona has not left the world richest personalities
The biggest losers were Amazon CEO Jeff Bezos who ranks #1 on the index and luxury-goods company. Bill Gates, who’s ranked #2 in the index, lost about $2.1 billion, with his net worth now at $114 billion. LVMH Chairman Bernard Arnault who ranked #3, each losing more than $4.8 billion. The richest man of India, Mukesh Ambani has not saved his business from Corona’s impact. He is the sole Indian in the top 15 categories of rich personalities, lost $903 million. His wealth now stands at $54.5 billion. But Ambani has not stopped himself to get profits in this situation for that he has started Jiomart which is the grocery app. People can order online through this app.
If rich personalities have suffered so much then how badly poor, labor class, middle-class businessmen hit by the pandemic?
One of the worst affected sectors of the Indian economy due to the COVID-19 pandemic has been the MSME (Micro, Small and Medium Enterprises) sector. Labour class has been suffering a lot due to coronavirus all migrants laborers went to their homes thus they have no way of earning and providing food to their family. Unemployment has been rising, many people are jobless.
All these situations have raised by the carelessness of the Indian Government instead of Corona!
Before coronavirus Companies used to supply goods with schemes and discounts to their distributors. Now distributors are not getting any such relief. This result is directly shown on medium shopkeepers who earlier borrow products from distributors on credit, are not getting products because no distributor is now ready to take a risk by providing goods on credit as people have no money to pay back.
Salespersons or agents of various companies like insurance or Government company LIC has faced depression due to the loss of their jobs. Due to Corona, people prefer their health firstly. In such cases, persons who used to advertise the company products from door to door for the marketing of companies product will no longer be able to do their jobs because of fear not come in the contact of infected persons. Mainly cloth markets, retail shops, and cosmetics markets bear a huge loss due to coronavirus. Automobile industries have also totally flopped. With a lack of early warning systems against a threat like a coronavirus, decision-makers will need to constantly monitor every situation rather than reacting to emergencies after they occur.
Reduction in Interest rates by Banks and Post Offices
Instead of helping people in this situation various banks and post offices have reduced 1%-2%interest which they give to their customer accounts. The post office which earlier provided 6.9% on its various accounts has now reduced to 5.6%. The post office which used to provide interest on PPF which was 7.9%, is now 6.9%. Senior citizens will get an interest near about 8%. This decision of government badly hit those people like senior citizens, retirement people who run their houses on their interests.
People who have learned to live in 2020 will live in the future easily because corona has become part of our life.
Now health is more important than anything.No one would like to take the risk to go outside India. People who were earning from the last 30 years can use their savings to live in this corona world. People who are jobless now have to learn new skills like digital marketing, Artificial Intelligence, and many more to secure their future because Corona has been changed in all sectors to the digital world. Updating your skills is the only way to survive in the upcoming years. People have to start their small businesses like selling necessary items to survive in today’s world.
We know that the poor will suffer from this tragedy far more than anyone else, as millions of Indians lose their jobs and health insurance. Insurance companies will change their policy in the future so people will not get help from them as insurance companies are also suffering because of this virus people claim their policies. However, the biggest concern is that many citizens are out of employment now, many others are facing drastic salary cuts and many have been asked to take unpaid leaves of absence. Therefore, businesses need to be prepared for reduced sales and manage their cash flows accordingly Hunger is the most effective disease. The potent vaccine for hunger is not free to supply of grains and pulses, but sustainable employment. The real war for India is not corona but tackling the situation aftermath!
In a moment of true crisis, the only logical response is to lower your head and tackle every issue head-on. We’re smack dab in the middle of that moment right now. But whether the curve flattens in six weeks or 1year, developing an effective vaccine takes the next ten or 14months or 2years. Till then we have to live with coronavirus which came to India due to the negligence of the Government of India!