Impact on Business due to Covid-19

Since the global coronavirus outbreak (Covid-19), panic and fear are spreading faster among the public all over the globe than the virus. Covid-19’s influence is not only limited to the production side of the market but has affected the supply chain as well.

The effect of the coronavirus pandemic in India and around the world is not limited to only a few industries but is visible across all economic stakeholders. The venture capital activity in the Indian ecosystem, for example, has seen a slowdown as social distancing and self-isolation hampers investor meetings. Similarly, both the white-collar and the blue-collar market are getting a negative effect.

The six major stock exchanges (FTSE, Nikkei, Sensex, Dow Jones, NYSE, and Hang Seng) around the globe witnessed an average decline of 26 percent (or 6.1 K) points this year, between January 10 and March 16. Among these, the worst affected was the S&P BSE Sensex, which shed 10.2 K points between January 10 and March 16 resulting in a 25 percent decline.

The coronavirus epidemic across countries has hindered both supply and demand in the local economy, resulting in lowering their estimated sales for the last quarter of FY20 by major business leaders. All of these considerations together have adversely affected consumer sentiment, contributing to a market crisis.

SECTORS THAT ARE SERIOUSLY AFFECTED:

1. Clothing & Garment would be adversely impacted by fluctuations in the supply of labor, unavailability of raw materials, constraints on working capital, and increased competition due to reduced human travel and buying power.
2. The automotive industry (including cars and car parts) will continue to face difficulties due to lack of competition, global recession, and declining sales rates.
3. Aviation & Tourism is one industry with the greatest risk of falling apart without direct interference from the government. It’s very doubtful that people can fly for pleasure over the next 12 months rather than a very important fly.
4. Transportation and Non-Food Distribution – This 12-month span will be very difficult for non-food supermarket outlets and multinational transportation businesses.
5. Building & Construction companies are typically leveraged and will thus face the twin pressures of high-interest rates and revenue shortages.

STEPS GOVERNMENT ARE GOING TO TAKE:

1. The Indian government, like its counterparts around the globe, has announced a slew of measures to prevent the total collapse. It’s just not enough, though. This works to ease some of the pain, and not counter it. My 2 cents (or one barrel of oil) on what the administration should do:
2. Loosen the belt and spend money on building infrastructure – ‘Rebuild India, Rejuvenate India.
3. The RBI must further capitalize and encourage public sector financial institutions to lend low-ticket loans below INR 1 Crore in the form of working capital to ensure that liquidity returns to the system.
4. The banking sector must be allowed to pass RBI-induced rate cuts to borrowers.
5. Individual tax cuts & tax holidays should be introduced for 6 – 12 months to boost spending, which will help drive economic growth.
6. These are not an exhaustive list of measures but could help to mitigate COVID-19’s impact on the Indian economy while stimulating growth.

Read  More: What is the difference between Bitcoin & Ethereum?

TRENDS IN WORKPLACE MANAGEMENT THAT ARE BEING PICKED UP

Mobile App Development Companies across the world are taking strategic steps to keep physical contact to a minimum and keep the operations going. The following trends have prevailed in the ecosystem according to these measures.

1. ONLINE MICE AND REMOTE WORKPLACES In the era of digitization, working remotely from anywhere at any time is of utmost importance. In many regions, forced quarantines will lead to behavioral changes and result in greater long-term adoption of remote working tools. Companies allow staff to turn to remote sessions using technologies such as teleworking and video conferencing.
2. ADOPTION OF COMPULSORY RULES ON SICK LEAVE Even if the situation returns to normal soon, companies and startups alike will implement compulsory sick leave policies covering even minute and basic health issues such as flu and fever, which are widely overlooked in India, especially in the Small and Mid-sized Business (SMB) market. The overall implementation of these initiatives would contribute to a safe and clean working atmosphere across businesses across the world.
3. INCREASED ENTERPRISE TECH ADOPTION IN INDIA

With self-isolation becoming the new normal in the fight against Covid-19, the adoption of company tech products is likely to increase and give an impetus to business tech startups in India. These firms originally relied heavily on foreign clients, owing to the popularity of the country’s traditional running business style – which involved regular meetings in person. Of course, these are early days and as individuals continue to evolve and adapt to their new way of life, we are likely to see many other trends emerging in the way business is conducted and in human behavior.

Conclusion:

All Web Design Development Companies around the world are sensing the impact of coronavirus (COVID-19). Leaders are navigating a wide range of interrelated issues ranging from safeguarding their employees and customers, shoring cash and liquidity, reorienting operations, and navigating complicated government support programs.