IMPACT OF COVID-19 IN INDIA AMONG VARIOUS SECTORS – Part II

Impact of COVID19

We have discussed a few sectors in the Previous Blog “Impact of COVID-19 in India among various sectors – Part I“. In the same line, the sector which is affecting a lot is Real estate. Real estate was also badly affected due to this outbreak, it is a labour-intensive industry, affects 269 other industries along with it because its resources materials are from different kinds like iron, steel, and nail which is building an industry.

Already due to the lockdown construction activity has come to a standstill. Site visits come to a halt, sales were down by 80%. MCHI report has said residential booking February – March has dropped 78% from January. New launches planned for April-May 2020 will be pushed back to at least till September 2020 to coincide with the festive season. Ana rock has pointed out 2020, new launches likely to register an annual decline of 25-30%.

Following the homebuyers, ongoing projects also may delay. As per Liases Foras, the delays due to coronavirus may also extend to 6 months. According to Ana rock research where 4.7lakhs units across the top 7 cities in India were likely to complete 2020 and these play a high face of delay. Property prices may come down by 10-20%. Land prices reduce by 30%.

Next is sports, because of this coronavirus, the Olympics have been cancelled, so this will impact the sponsors, shops and the japan government will also have a huge impact. And in India IPL is also been cancelled due to this pandemic, because of this, the sales for T-shirts, caps, stalls, tickets, and sponsors have been affected. Due to this many sports have been scheduled and cancelled.

The Wimbledon championship has cancelled for the first time since World War II while professional tennis has been suspended until July 13. The international table tennis federation (ITTF) scrapped all table tennis competitions until the end of July. Netball super league fixtures were postponed at least May 31. Golf open championships were cancelled. The Indian premier league (cricket) originally suspended until April 15 has been postponed indefinitely.so many kinds of sports are affected due to this pandemic.

Next is the economy of India which is affected a lot due to this pandemic. The Indian economy was excepted to lose over 32000cr every day during the first 21 days of lockdown. Under complete lockdown less than a quarter of India’s $2.8 trillion economic movements was functional. Up to 53% of businesses in the country were projected to significantly affected.

Major companies in India such as Bharat Forge, ultra tech cement, Aditya Birla, Tata motors have temporarily reduced operations. Young startups have been impacted as funding has fallen. Fast-moving consumer goods companies in the country have significantly reduced operations and are focusing on essentials.

The COVID 19 pandemic has affected educational systems worldwide, leading to the near-total closures of schools, universities, and colleges. As of 22 May 2020, approximately 1.725 billion learns are currently affected due to school closures in response to the pandemic.

According to UNICEF monitoring, 153 countries are currently implementing nationwide closures and 24 are implementing local closures, impacting about 98.6% of the world’s student population. 10 countries’ schools are currently open. As we know that due to coronavirus pandemic the state governments across the country temporarily started shutting down schools and colleges.

As per the present situation, there is an uncertainty when schools and colleges will reopen. No doubt, this is the crucial time for the education sector because entrance tests of several universities and competitive examinations are held during this period. Along with them how can we forget about board examinations, nursery school admissions, etc.?  as it is very important for the students, this makes the biggest impact in India, due to this closures of schools may have not completed their board exams, 10th have not started their exams, 11th they have one exam, so they are being affected by this pandemic. – Technology may play an important role in the lockdown period like a study from home and work from home.

In India, some private schools could adopt online teaching methods. Low-income private and government schools may not be able to adopt online teaching methods. And as a result, there will be completely shut down due to no access to e-learning solutions. In addition to the opportunities for learning, students will also miss their meals and may result in economic and social stress.

As discussed above, all major entrance examinations are postponed including engineering, medical, law, agriculture, fashion and designing courses, etc. This situation can be a ringing alarming bell mainly in private sector universities. Maybe some faculties and employees may face salary cuts, bonuses and increments can also be postponed. 

So this pandemic has affected various kinds of sectors and has faced a lot of loss. This made India face a lot of problems and many deaths, this will be solved when the virus has destroyed, so till then hope that everyone is safe and healthy.

Authors:
1. Dr. Vikas Arya
Associate Professor, Rajalakshmi School of Business, Chennai
Email – vikas.arya@rsb.edu.in

2. Ashritha M
Rajalakshmi School of Business, Chennai