Scribd Logo
Upload

Welcome to Scribd!

  • 59 views

    Assignment Marketing Management (KGNM - MMTA009)

    Uploaded by

    efaz ahmad
    The Covid-19 pandemic has significantly disrupted India's economy. India's GDP growth dropped to 3.1% in the last quarter of fiscal year 2020 due to the pandemic's effects. Unemployment rose dramatically during the lockdown and over 45% of households reported lower income. Major sectors like apparel, automotive, aviation, tourism, and construction were hit hard. However, some sectors like online education, retail, and pharmaceuticals may see increased demand. The government aims to stimulate the economy through infrastructure spending, lending support, and tax cuts. Global supply chains have also been disrupted, which will impact both exporting and importing nations. Developing countries like India will need substantial support for vulnerable sections.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Assignment Marketing Management (KGNM - MMTA009)

    Uploaded by

    efaz ahmad
    59 views5 pages
    The Covid-19 pandemic has significantly disrupted India's economy. India's GDP growth dropped to 3.1% in the last quarter of fiscal year 2020 due to the pandemic's effects. Unemployment rose dramatically during the lockdown and over 45% of households reported lower income. Major sectors like apparel, automotive, aviation, tourism, and construction were hit hard. However, some sectors like online education, retail, and pharmaceuticals may see increased demand. The government aims to stimulate the economy through infrastructure spending, lending support, and tax cuts. Global supply chains have also been disrupted, which will impact both exporting and importing nations. Developing countries like India will need substantial support for vulnerable sections.

    Original Title

    Assignment Marketing Management (KGNM_MMTA009)

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The Covid-19 pandemic has significantly disrupted India's economy. India's GDP growth dropped to 3.1% in the last quarter of fiscal year 2020 due to the pandemic's effects. Unemployment rose dramatically during the lockdown and over 45% of households reported lower income. Major sectors like apparel, automotive, aviation, tourism, and construction were hit hard. However, some sectors like online education, retail, and pharmaceuticals may see increased demand. The government aims to stimulate the economy through infrastructure spending, lending support, and tax cuts. Global supply chains have also been disrupted, which will impact both exporting and importing nations. Developing countries like India will need substantial support for vulnerable sections.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    59 views5 pages

    Assignment Marketing Management (KGNM - MMTA009)

    Uploaded by

    efaz ahmad
    The Covid-19 pandemic has significantly disrupted India's economy. India's GDP growth dropped to 3.1% in the last quarter of fiscal year 2020 due to the pandemic's effects. Unemployment rose dramatically during the lockdown and over 45% of households reported lower income. Major sectors like apparel, automotive, aviation, tourism, and construction were hit hard. However, some sectors like online education, retail, and pharmaceuticals may see increased demand. The government aims to stimulate the economy through infrastructure spending, lending support, and tax cuts. Global supply chains have also been disrupted, which will impact both exporting and importing nations. Developing countries like India will need substantial support for vulnerable sections.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Name:- Efaz Ahmad

    Subject:- Marketing Management (KGNM_MMTA009)


    NEPTUN Code:- NPVLFJ
    Submitted to:- Prof. Dr. László Józsa

    Question:- Analyze the effects of the Covid pandemic on your country's


    economy ? (India)

    The economic impact of the 2020 coronavirus pandemic in India has been largely disruptive.
    India's growth in the fourth quarter of the fiscal year 2020 went down to 3.1% according to
    the Ministry of Statistics. The Chief Economic Adviser to the Government of India said that
    this drop is mainly due to the coronavirus pandemic effect on the Indian economy. Notably
    India had also been witnessing a pre-pandemic slowdown, and according to the World Bank,
    the current pandemic has "magnified pre-existing risks to India's economic outlook".
    Unemployment rose from 6.7% on 15 March to 26% on 19 April and then back down to pre-
    lockdown levels by mid-June. During the lockdown, an estimated 14 crore (140 million)
    people lost employment while salaries were cut for many others. [1][3] More than 45% of
    households across the nation have reported an income drop as compared to the previous year.
    The Indian economy was expected to lose over ₹32,000 crore (US$4.5 billion) every day
    during the first 21-days of complete lockdown, which was declared following the coronavirus
    outbreak. Under complete lockdown, less than a quarter of India's $2.8 trillion economic
    movement was functional. Up to 53% of businesses in the country were projected to be
    significantly affected. Supply chains have been put under stress with the lockdown
    restrictions in place; initially, there was a lack of clarity in streamlining what an "essential" is
    and what is not. Those in the informal sectors and daily wage groups have been at the most
    risk. A large number of farmers around the country who grow perishables also faced
    uncertainty. Major companies in India such as Larsen & Toubro, Bharat Forge, UltraTech
    Cement, Grasim Industries, Aditya Birla Group, BHEL and Tata Motors have temporarily
    suspended or significantly reduced operations. Young startups have been impacted
    as funding has fallen. Fast-moving consumer goods companies in the country have
    significantly reduced operations and are focusing on essentials. Stock markets in India posted
    their worst loses in history on 23 March 2020.

    Adversely affected Sectors

     Apparel & Textile will get hit adversely due to disruption in labour supply, raw
    material unavailability, working capital constraints and restricted demand due to limited
    movement of people and purchasing ability.
     Auto sector (which includes automobiles and auto parts) will continue to face
    challenges on account of lack of demand, global recession and falling income levels.
     Aviation and Tourism is one sector which has the highest probability of going under
    without direct government intervention. In the next 12 months, it’s highly unlikely people
    will travel for leisure apart from very essential travel.
     Shipping and Non-Food Retail – Non food retail chains and global shipping
    businesses will find this 12 month period very challenging.
     Building & Construction businesses are generally leveraged and hence will face the
    dual challenges of high-interest payments and lack of sales.
    Sectors with a possible uptick

     Digital & Internet Economy: Online based products & services companies will find
    new takers
    o Ed-tech and Online Education along with firms involved with online-skill
    development
    o Online groceries
    o There will be a sudden spike in the demand for Content, with digital content
    being in demand more than ever.
     FMCG & Retail will benefit immensely. With continued fear, food-based retail
    chains, and companies catering to low-ticket consumption demand will emerge as winners. 
     Speciality Chemicals: Firms dealing in Chemicals will see a jump due to increased
    demand for disinfectants, drugs and medicines.
     Pharma: Pharmaceutical firms are set to see growth in the near term.

    Countries like China & India stand to benefit from low crude-oil prices and a younger
    population which can kick in low-ticket consumption demand. While the world is
    currently dominated by right-wing politicians who propagate the concept of ‘Make
    Local, Consume Local’, the world will find comfort, once again, in the arms of
    capitalism. Free markets and abolishment of trade restrictions can be expected in the
    Post-Covid 19 era.

    Covid-19 Impact on India’s Economy: Challenges & Solutions

    What can the Government do?

    Like its counterparts across the globe, the Indian government has announced a slew of
    measures to prevent total collapse:-

     Loosen its purse and spend money on infrastructure development –  ‘Rebuild India,
    Rejuvenate India’
     Public sector financial institutions need to be further capitalized and nudged by the
    RBI to lend out low-ticket loans below INR 1 Crore in the form of working capital to ensure
    that liquidity comes back into the system
     Banking sector needs to be nudged to pass on rate cuts induced by RBI to the
    borrowers
     Personal tax cuts & tax holidays for 6 – 12 months can be adopted to revive
    consumption, which will help spur economic growth

    Disruption of Supply Chain and Global Trade:-


    Covid-19 has disrupted global supply chains and this is generating spill over effects
    throughout different levels of supplier networks. Global trade in 2020 will fall in every region
    of the world, and will affect all sectors of the economy. This will impact countries that are
    strong exporters (no output for their local companies), but also those that are importers (lack
    of raw materials). The World Trade Organization (WTO) expects global trade to fall up to
    32% this year due to the coronavirus pandemic.

    Conclusion:-
    Developing countries like India has more fragile economic and social fabric and the present
    situation will create more suffering for the unorganized sectors and migrant labour. Former
    Reserve Bank Of India governor C Rangarajan said “Government of India must provide
    lifelines to businesses - extend loans and tax waivers to small businesses and the self-
    employed to retain staff -- give direct support to severely affected industries and provide
    more funds to states, tax waivers to households etc.

    You might also like