The potential impact on the Indian economy of coronavirus is yet to be known, but several sectors are already blown by the sudden lockdown. Even though the country may not slip into a recession, unlike the Eurozone, the US, or Asia-Pacific that have stronger trade ties to China, analysts believe the impact on India’s GDP will significantly reduce. Here’s a list of some of the sectors and how they are impacted by the outbreak:
The travel ban/restrictions have caused a major loss to the airlines’ company. On March 6, Indian private carriers had cancelled 93 international flights and global airlines 492 flights. Now imagine the impact of it on the companies. Evidently, airlines have to go through a lot of turbulence.
Hospitality and Tourism:
Due to the lockdown of the entire nation plus travel ban, this is amongst the top sectors to be blown with losses. The occupancy rate of hotels is 90-100% due to nationwide lockdown resulting in heavy losses of the hotel industry.
In terms of trade, China is the world’s largest exporter and second-largest importer. It accounts for 13% of world exports and 11% of world imports. The lockdown will surely affect the import-export business.
Some chemical plants have been shut down in China. So there will be restrictions on shipments/logistics. It is found that 20% of the production has been impacted due to the disruption in raw material supply.
Coronavirus outbreak has impacted the business of cargo movement service providers. As per the sources, per day per vessel has declined by more than 75-80% in dry bulk trade.
China is the major supplier in supplying electronic appliances to India. India’s electronic industry will face supply disruptions, production, reduction impact on product prices due to heavy dependence on electronics component supply directly or indirectly and local manufacturing.
India may not suffer as much, given that it has a smaller exposure to the global economy; exports of services and goods are only a fifth of its total economy. Lower oil prices will provide a cushion, boosting government revenue and creating room in household budgets