Business Impact On Various Industries Due To Covid-19: Analysis and Predictions

Coronavirus which has been designated as the global pandemic continues to spread globally while having a significant impact on business sectors and economy. Many speculations, analysis and research reports are stating that the world economy is heading towards a great recession. And even after the economic restart, many businesses in growing sectors will still have constant effects of the Covid-19 pandemic. 
As global response develops toward the impact of coronavirus, businesses are analyzing the damages and debts it will leave for their sectors. Limitations and precautionary quarantines to curb the impact of coronavirus are leading industries to an outright slowdown. As a software marketplace, we are contributing our share as a clear take towards providing information on the pandemic effects on businesses and sectors associated with us.

In this blog, we tried to understand and analyze the current business impact on various sectors due to COVID-19 to make predictions upon what is being done to mitigate the impact of plunging global economy.
(These predictions are solely based on a study of data-backed analysis, news and reports published from January 2020 to March 2020.)

Production and Manufacturing Industry
Supply disruptions are one of the most common challenges manufacturing and productions industries are responding to. Under the lockdown, the automobile, textiles, and engineering are amongst the top industries facing supply issues due to a shortage of workers who returned to their home states. Also, replacing workers and readjusting supply chains post lockdown can affect their industrial growth in upcoming years. Manufacturing and production industry’s needs require preparedness and support from administration to be fulfilled and get a restart as the restrictions end. 

Real Estate and Construction Industry
As we are in a nationwide lockdown, some sectors such as real estate and construction are struggling to find increased revenues in a falling economy. An already downturn real estate sector is standstill despite getting relief provided by the government. Consumer preference has evolved as an impact of current scenarios. Remote workplaces are in trends and are most likely to stay and affect real estate businesses for a very long time. However, the work is being done by the authorities to pull back the falling industry with radical policies and efforts. Thanks to easing of lockdown restrictions for the construction sector, businesses and real estate projects are planning to get back on track 

Tourism and Travel Industry
The rise of coronavirus and travel restrictions may have ended up the need for certain travel agencies and tourism businesses among the consumers. Also, it impacted badly on airline businesses and forced planes to be grounded due to the uncertainty to a slowdown of the pandemic. Yet, it’s too early to predict the losses and risks associated with a huge halt in tourism and travel exercises. As data is changing on a daily basis as the virus spreads. However, according to sources, Industry is expected to have a global loss of 100 million jobs and $3 trillion revenue loss.

Hospitality and Restaurant Industry 
Hospitality is amongst one of the two largest industries impacted by the coronavirus (Covid-19) pandemic. Hoteliers and restaurants in the sector felt a sharp decline in the demands in the first quarter of 2020 in domestic travel & accommodation. Also, the precautionary policies and containment measures introduced by the India government lead to a serious dip in foreign tourists. All due to airlines and travel, restrictions, cancellations, restaurant and bar closures, low consumer interest etc. Predictions are that most of the businesses in this industry will find themselves on the verge to reevaluate their business models to analyze risks and growth chances in such vulnerable times post lockdown. Further, the sources estimate that the restaurant and hospitality industries will face shutdowns and gradual recoveries in already closed businesses if the situation doesn’t improve.

Information & Technology (IT) Industry
Coronavirus has a slight mixed impact on the IT industry. With mandating the work from home policies for employees and realizing the benefits of outsourcing. IT firms were able to ease the impact of Coronavirus pandemic on their business and gain profits. Due to the country lockdowns, many businesses have seen a considerable surge in demands of home and business collaboration software and tools. The changes have started. Zoom, a popular enterprise video communication platform is one of the most downloaded business apps in India under lockdown period. Researches have predicted that the industry will continue to thrive at a flat pace even in the precautionary lockdown restriction and reducing demands.

Conclusion
Coronavirus which is already being regarded as the greatest humanitarian crisis we have witnessed in almost a hundred years. It’s no shock that the virus is spreading daily like wildfire, and by the time we publish this blog, India would have crossed the 30k mark among the active positive Covid-19 cases. The impact of Covid-19 businesses in India Is severe and required to be resolved now and moreover post lockdown. Surely the policies are being made to lessen the impact, but in such a crisis robust measures are required to support and stabilize the failing sectors, and businesses. This should be in the government’s top priorities.
“The country’s growth is likely to hit a 30-year low of 2 per cent in the financial year 2020-21 (FY21) as economic recession grips the global economy, following Covid-19 outbreak, Fitch Ratings said in its latest report.”

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