By Amisha Khandelwal
B.Com(H) 1st Year
India faced huge disruption in economy due to pandemic in all sectors. Coronavirus is still affecting the many lives of people. Domestic demand and export is also affected highly as vast variation has been shown . Demand in India will become very low unless people will not get enough confidence to spend. Few sectors like transport, tourism, hospitality have collapsed for the first time. India financial condition is not so good and affect many sectors.
IMPACT ON SOME SECTORS DUE TO COVID -19
- AVIATION & TOURISM – They were the first industry that were hit significantly by the pandemic. To survive the pandemic induced crises, all airlines took cost cutting measures like firing or pay cuts in 2020. The impact is going to fall both blue and white collar jobs. There is about 2.4 % and 9.2% contribution of aviation & tourism to GDP respectively . Currently about 80% of domestic flights are operating by the Indian airlines. They are hoping for amuch better year as compared to 2020.
- FOOD AND AGRICULTURAL – As we know agriculture is the backbone of the country,So at the time of lookdown -the harvest period going on and harvesting is successfully completed. The major impact is on prices as there was so much fluctuation in the prices of items like food and vegetable. Many producers left to the mercy of markets which were not functioning properly due to lockdown. Online food grocery platforms are heavily impacted due to unclear restrictions on movement and stoppage of logistics vehicles.
- TELECOM – Telecom industry saw a boom due to the lockdown in view of Covid 19. People get addicted towards mobiles phones and PC’s which increased data traffic for companies. Almost6.5% of GDP is contributed by telecom sector and employs almost 4 million people. In these days most company faced financial issue which lead to loss of jobs, Hence livelihood.
- OIL & GAS – India is the third largest consumer in world and contributes 5.2% of the global oil demand.As good & passenger movement declines, there was fall in the demand of oil & gas.
Demand for total petroleum products – including diesal, fuel and jet fuel – slid 10.8% from a year earlier. Demand is picking up as restrictions are eased.
Many measures are announced by RBI and Finance Minister that will help industry and employees in short run. As a policy recommendation, the government can aid the sector by relaxing the regulatory compliances and provide moratorium for spectrum dues, which can be used for network expansions by the companies. The government may think of passing on the benefits of decreased crude prices to end consumers at retail outlets to stimulate demand.
By Amisha Khandelwal
Student (B.Com(H) 1st Year)
