COVID-19 has been wrecking the world’s economy for the past 16 months, but the wreckage hasn’t stopped yet. The COVID-19 wave has brutally disrupted businesses, over 82% of businesses have experienced a negative impact pan India. Even though, this change had helped businesses on a reduction of cost and increased the pace of competitiveness. However, not all businesses have embraced this positive change.
Coronavirus impacting all industries worldwide. The impact is ranked on a 5-point scale from minor to severe impact.
- Minor impact
- Moderate impact
- Significant impact
- Major impact
- Severe impact
Apparently, the businesses that are right across the screens have almost survived as compared to the offline ones that hit worst. With that said, the damages by the second wave weren’t severe as compared to the first wave of COVID-19 which had tremendously affected operational capacity.
The struggle of small businesses will be here to stay as the coming of the third wave. How many businesses are going to sink or stay afloat? However, the bigger picture about the COVID-19 storm heading towards is yet to determine, many researchers predicted that “the pandemic shouldn’t extent beyond May”.
Let’s take a quick glimpse at what businesses have lost in the past.
COVID-19 Impact in India in 2020
The impact is appalling and may take years to be back to what it is now. Not even a single sector was spared from this deadly storm. Even though the impact is uneven.
Due to the abrupt lockdown on March 22, the estimated losses of nine trillion rupees were from organized sectors in late March.
Furthermore, the most affected sectors between April and June 2020 were manufacturing and services, financial services, travel & tourism, mining, and construction with declining rates of up to 23 percent.
Towards the end of 2020, certain sectors had breathed a sigh of relief due to the ease in restrictions and festive season between October and November.
COVID-19 Impact in India in 2021
Unsurprisingly, this year was no change. Especially, now. As the third wave of COVID-19 has been approaching. The pandemic changed the daily functioning of everything drastically.
The economic activities had a hit yet again since March 2021, the GDP was forecasted to fall, the losses were expected 38 million U.S dollars if the lockdown continued till June by the states.
Health Care has been burned and exhausted as the unprecedented numbers of infections and deaths have been increasing.
Sectors including Consumer retail expected to fall ranging between 3 and 23 percent depending on the market. However, MSMEs are all by themselves in this sink and swim situation.
According to United Nations, India’s GDP to grow by 10.1 percent in 2022 percent. Furthermore, RBI had also projected a GDP growth rate of 10.5 for 2022 even though the current scenario is fragile, but there is still some hope left for businesses to grow in this unparalleled game of demand and supply. However, Vaccine has a major role to play in the recovery process. Vaccine inequity across the nation causing panic and fear amongst citizens and aggravating the situation further. As Sputnik V has arrived in India and to be available from next week. 2 Billion doses will be made available in India, said the central government.
Shaktikanta Das, RBI Governor introduced new measures to tackle the second storm of COVID-19 in India. The on-tap liquidity funding of Rs 50,000 crore was announced by the Governor, as a credit facility to be offered to the banks, NBFCs, and other lending institutions. This funding support shall be offered to the enterprises engaged in the manufacturing, healthcare, and logistics sectors and loan schemes shall be offered to the Vaccines manufacturers, medical equipment makers, hospitals, as well as patients by the private and public sector banks, Micro Finance Institutions (MFIs), NBFCs, and Small Finance Banks (SFBs).