Name: Bhavi Solanki Submitted to:

Roll No. : 9 Ms. Palak Sakhiya

IMPACT OF COVID-19 ON INDIAN ECONOMY

India’s economy has already been suffering from slow down in the
recent past. Moody’s has downgraded India’s growth to 5.3% in 2020
due to downside risks of Covid-19, the slowest in 11 years.

According to an economist,
Sectors like tourism, aviation, hospitality and trade will face the first
set of challenges; other sectors too will face the cyclic effect. As per
reports, there has been 20% reduction in domestic travel and about 75%
reduction in international travel bookings.

Hotel booking rates have also declined from 70% to 20%. There has
been a down of 30-35% in restaurant business. Sales of poultry
sector have also come down by 80% losing a business of approximately
Rs 1,500 - 2000 crores daily.

India’s ongoing GDP loses are likely to be approx $5-10 billion (0.15 -
0.35 percent of GDP), as per data. With more than 20% cut in
benchmark indices; the Indian equity market has entered the bear
market territory. 
IMPACT OF COVID-19 ON AVIATION INDUSTRY

AVIATION INDUSTRY :
Aviation Industry is the business sector dedicated to manufacturing &
operating all types of aircraft.

The Covid-19 pandemic has had a significant impact on the aviation industry
due to travel restriction and slump in demand among travelers.
Significant reduction in passenger number has resulted in flights being
cancelled or planes found empty in airports.
The COVID-19 pandemic had a massive impact on the Indian aviation sector
in 2020 and major airlines facing losses and challenging times laid off
employees, sent them on leave without pay, or cut their salaries.

The effect of this disruption can be gauged by the loss figures of India's two
largest airlines. IndiGo incurred net losses of 2,884 crore and 1,194 crore in
Q1 and Q2 of this fiscal respectively. SpiceJet posted net losses of 600 crore
and 112 crore in Q1 and Q2, respectively.
The government, meanwhile, permitted special international passenger
flights under Vande Bharat Mission since May and air bubble
arrangements were formed with around 24 countries since July. However,
scheduled international flights remain suspended in India.

"The revival of overseas travel is expected to be slower and more

challenging than domestic. This will hurt Air India in particular as around
60 per cent of its revenue was earlier generated from international
operations," said aviation consultancy firm CAPA in October.

It estimated that just 50-60 million passengers -- 40-50 million domestic

and less than 10 million international -- would travel in 2020-21.

In 2019-20, approximately 205 million air passengers -- 140 million

domestic and 65 million international -- travelled in India.

So, because of covid-19 pandemic the revenue of airlines industry

massively reduced.