Hyderabad: News coming from different parts of the country suggest that the Novel Coronavirus or COVID-19 is not only a public health issue but also a major business problem.
India’s business relations with major hotspots of COVID-19 like China, Japan, South Korea, Italy, Iran, US, etc have already taken a hit due to disruptions in supply chains and curbs on imports, exports and travel.
As per an estimate of Asian Development Bank (ADB) coronavirus outbreak may cost the Indian economy between Rs 2,700 crore and Rs 2,10,000 crore.
Let us find out sectoral impact of COVID-19
Automobiles
As India meets 25% of spare parts imports from China, it is expected to result in 8-10% contraction of Indian auto manufacturing sector.
Pharmaceuticals
As per an estimate, 85% of drug raw materials (like paracetamol) imported by Indian companies are from China. If the outbreak continues, there is a fear that India will run out of essential medicines.
Agri Products
Due to restrictions on trade India’s cotton, red chilli, spices exports to China and other major countries have affected.
Animal Husbandry
Export of buffalo meat fell down by 50% in February. Demand from Vietnam, Middle East and European Markets have slowed down. Similarly, the poultry industry is in doldrums and has already sent a distress signal to the government for a bailout.
Tourism
It is one of the worst affected sectors due to COVID-19. Reports suggest that footfall at prominent tourist places like Taj Mahal saw drastic fall in February. Sabarimala temple authorities have urged devotees to postpone their pilgrimage.
Aviation Industry
Due to travel curbs imposed by many countries and restrictions on employees’ movement by companies, there is a drop in fresh bookings and occupancy in flights.
Information Technology
The IT sector may see some indirect impact in the medium to long-term as some of the clients have exposure to major hotspots of COVID-19.
Entertainment Industry
The industry faces an estimated loss of Rs 200-250 crore in the short term. Delhi and Rajasthan circuits contribute around 25-30% where majority of coronavirus cases were found.
However, some experts point out the silver lining in the COVID-19 outbreak. For instance, falling crude oil prices in the global market will help India in reducing the import bill. For instance, the oil subsidy bill could shrink to Rs 10,000 crore from Rs 40,000 crore in FY21 if the crude trends at USD 45 a barrel.
Read more: Yes Bank founder Rana Kapoor's ED custody extended till March 16
