If Covid-19 finishes what is next in the market?Pratik Raval
Starting the trade war in July 2018 between China and the United States, the world economy has been declining day by day. The world identifies the first case of corona in November 2019 in China. Due to the corona effect on China, they decided to lockdown their market for spreading this virus. It will ultimately impact the global economy.
Covid-19 starting In India from 30 January 2020. Initially, the Government decided to lockdown from 24th March to 14th April it will have chances to extend the same.
Everybody is eagerly waiting for the new market to open. This market is coming with new demands of the customer. Here I noted a few things in various sectors that will impact after six months in the market.
In India, the market is locked down for more than 25days and may be extended. It seems that all business has been stopped in this period and nobody knows when to open it. It seems that all fixed expenses like employee salary, office rent, taxes, maintenance, etc need to pay without doing new business. So it may seem that all the businesses are facing issues with liquidity. They need new liquidity from finance companies.
There is a challenge against finance companies to circulate money in the market for the next 6 months.
Tourism business crash from Nov 2019. This one highly damaged sector from all of these. There is no new business opportunity for the next six months. We know that the virus spreads from person to person so people avoid their trip without any reason. Only those businesses survive who plan well financially.
Information Technology and Services:
One of India’s best-growing sectors in the current scenario. In India’s 80% IT business depends on offshore but it also affected due to recession worldwide. IT businesses not totally broken due to the facility of work from home. That’s true that the productivity level is not getting as much as expected, but it wise better than stopped:).
Information Technology in India is an industry consisting of two major components: IT Service and business process outstanding (BPO) The sector has increased its contribution to India’s GDP from 1.2% in 1998 to 7.9% in 2019.
Real Estate always in the center of the economy. This sector provides the 2nd highest employment opportunity in India. Right now, the Indian government focusing on everyone has their home till 2022. They are focusing on the affording sector. Afterall when it will start, decision making to buying property will take a time from the customer point of view.
In Real Estate there require a huge investment in a single project. Due to lockdown, businessmen faced a problem of liquidity, for the next 6 months it will difficult for new sales in the market.
This will impact directly or indirectly other sectors like
>>Airline Industry doing huge losses in a single day.
>>Media sector growing rapidly, Almost TRP of channel increase during a lockdown.
>>Sales is not a major challenge in the FMCG sector, It needs to manage the only rotation.
That’s why India’s expecting GDP only 2.5% year of 2019-20. All sectors need at least 6 months of stability in the market. Initially, 6 months will take crucial for a businessman.