Covid-19 pandemic outbreaks have started in early 2020 and In just a few months it has spread rapidly across countries. Thereby most countries Government has imposed lockdown,restricting the movement across the borders.
Due to its increasing number govt has strict guidelines & has created containment zones.
Lot of sectors are affected from COVID 19 impact globally , Due to which GDP has suffered a lot; Global trade is all time down.
How Business affected by COVID
Business across the world have hit hard due to low consumer demand; Major capital-intensive industries are on edge to die down soon (since even after the COVID vaccine, it would take some time to increase customer confidence in the Market).
The Manufacturing sector like — Airline industry, hospitality industry, Global oil demand, Electric power industry are worse affected by the pandemic. They are coping with the pandemic either via excess cash reserves or via bank loans or Government tax incentives.
The manufacturing sector is one of the most significant contributors to a national GDP since its demand is not only in the country but it’s also been exported across the country since the Covid pandemic has restricted movement guidelines across borders & inordinate delays in clearance due to congestion at ports are hampering the cash flow and revenues of this sector.
Also, the Manufacturing sector depends on various Other countries for specific component.
eg, in Manufacturing of a vehicle, is depended on the import of components of various parts of engines & electronic items from other countries; because supply chains have broken down, the manufacturing of a vehicle has become harder.
The government has restricted the guidelines of movement across borders, Airline industry is capital intensive industry, the expenses of salaries Maintainance of standing Airplanes are burning their pockets.
In a time of pandemic & uncertainty of future, there is a customer fear on spending & traveling.
Global Oil demand
Most of the countries have imposed lockdown, due to which movement of vehicles has decreased significantly, due to this OPEC countries have suffered have a major loss.
Electric Power industry
Due to the major industries have shut their processes. The power industry has been hit hard due to low power demand(also Power companies like— Solar Energy are seen as a way ahead for sustainable growth & their share price is increasing amidst pandemic).
Industry booming amidst pandemic
An industry like – Online Education, Online food delivery apps, Pharma sector & e-commerce are booming (as people during pandemic prefer to be at home).
As Noble Laureate Abhijit V Banerjee has said
“Awareness of our problems thus does not necessarily mean that they get solved. It may just mean that we are able to perfectly anticipate where we will fail.”
Some of the points government should follow to mitigate the Damage of Covid 19:
- In the environment of uncertainty, the government must ease the taxes on the stressed industry.
- In Covid time As Banks are unwilling to take risks, govt must make policies more Ease through flush with funds, so that small Business & Startups can easily get micro-loans and can sustain the impact of covid 19.
- The government Can to an Economic relief package to the most affected sector.