Micro and Macro Economic development in the Post Pandemic era

Group - 3

Name:
Sirshajit Sanfui (63)
Anirban Chakraborty (04)
Sagnik Mukherjee (51)
Barish Mitra (12)

Introduction

The paper examines “Micro and Macro Economic development in the Post Pandemic era”
studying the trends in management of Indian Economy; dealing with recession, forecasting
and changes in Economic policy. Almost all sectors and subsectors of the Economy were
significantly affected by the Pandemic and the subsequent lockdown imposed in order to
counter it. Economic activities were stopped or otherwise slogged due to movement
restrictions, restrictions on gathering and other reasons. With most of the market being
closed, the economy took a severe dent. This caused changes in the demand and supply in
the goods and money market, and also affected greatly the Economies of scale. All past
notions about the management of the Economy were affected and thus most of them were
revised to improvise with the changing tide. The Government with Finance Ministry had to
devise changes in the Economic policy to counter the recession in the market, with
simultaneous increase in the price of goods and services. The Forecasting was off the
charts, as there wasn’t a first clue as to how one would properly react, let alone recover from
the shock that the pandemic was. People from all over the country were affected either
directly or indirectly by the aforementioned changes especially at a macro level. Their
expenditures changed, as did their buying habits and patterns.
Effect of Covid-19 on the various sectors of economy in India

Agriculture

Agriculture Sector wasn’t substantially affected, with a decline of -2.7%. Allied industries
comparatively had more setbacks in the range of 8-20% by sector owing to decline in
demand. Dairy and Horticulture sub-sectors also saw a decline in production for the same
reason.
The impact of COVID-19 pandemic on the overall production levels in the agricultural and
allied sector has been significant with a decline of 47% over the country.

Reasons for decline in agricultural and allied sector can be attributed to lack of availability of
labour and machines, restrictions on free movement of labour and machineries.
In the agriculture sector, most states have reported a decline in production like Himachal
Pradesh (14%), Chhattisgarh (12%). However, some large agricultural states have actually
shown a growth in agricultural production like Gujarat (6.7%), Telangana (23 % increase),
Punjab (5%), Rajasthan (4.4%).

The overall availability of agricultural inputs reported a decline in 58% of the districts and
38% of the total districts reported no change in the availability of agro-inputs, however only
4% of the districts stated increase in the availability of Agro-inputs
The average availability of agro-inputs at the national level reported a decline across all
subsectors. The sharpest decline was in the availability of fertilizers (11.1%) closely followed
by decrease in fodder/cattle feed (10.7%) and agricultural machinery (9.9%), followed by
availability of pesticides (9.7%) and seeds (8.9%). The cause for decline in availability can be
attributed to unavailability of transport, restriction on movement and the markets being
closed.

Supply, Demand and Wages of Agricultural-labour

The supply, demand and wages of labour was severely affected by the movement
restrictions and lockdown imposed due to the pandemic at all-India level. The country during
this period witnessed significant number of migrant labourers trying to return back to their
homes. Supply of labour was severely affected by this. Agricultural labour supply had shown
a decline in 69% of the districts. The labour supply remained the same in 19% of the
districts. an increase in labour supply in 13% of the districts owing to the return of migrant
labour to their native places.
Demand for labour at an all-India level increased in 42% of the districts and decreased in
24% of the districts. In 34% of the districts, the demand remained the same.
It was reported that wage rate had increased in 42% of the districts, decreased in 11% of the
districts and remained same in 47% of the districts.
Mining

India's mining industry is a labour- and capital-intensive industry that accounts for 2 to 4% of
GDP. India has around 3,938 operating mines containing various types of minerals, from coal
to smaller minerals. The mining industry is also badly affected by the massive workforce.
The industry employs 23 lac people. Around 20.3 million people work indirectly in mining.
Almost 1.3% of the population live in nearby mining areas in India.
The pandemic has short- and long-term effects on the workforce and industry. Short-term
effects include cessation of mineral production, lost wages due to pandemic outages and
restrictions, unemployment, and the sale of minerals in the market. In the long term, the
continuity of the numerous mining companies, the name and economic health of the
industries, the exploration of new mineral deposits and the advanced development of new
mines are affected. Aside from the specific impact of COVID19 on the mining industry, the
social fabric of workers in mining has been compromised as they live in an environment of
fear, insecurity and health concerns.
As a direct consequence of this moderate production from the mines, the decline in mining
revenues for governments, the reduction in construction activity is likely to result in a
massive decline in the steel industry given the situation on the end-use side and impact
cement consumption in FY 2021 the mineral and limestone sector. Likewise, the delay in
production activities in the industrial sector is likely to have an impact on energy generation
without the use of coal and thus on the production, license fees and taxes of thermal coal.
Of course, the demand for many different minerals can also be influenced.
Coal India saw production decrease of 38.1% and NMDC recorded a 41.6crease in fiscal
2020-2021.
According to estimates, the top Five mineral producing countries appear to be receiving a
total impression of around INR 3,003,500 crores due to the decline in mineral production.
The COVID19 outbreak, as well as the future lockdown announcement across the country,
have disappointed the playing field with the seamless continuity of operations in these
auctioned mines. their operations while the rest of the bourgeois miners cut their
production or cut their costs
The entire mining sector has seen a depreciation in value, the treasuries are expected to
push them to be hard hit, especially after raising higher revenues to finance them family
health and wellbeing and the creation of new infrastructures, government agreements to
auction new coal and mineral blocks are likely to lead to delays, MDO / MOs are likely to face
significant challenges, and not at least COVID19 has already influenced the entire system of
the company, in particular major stakeholders.

Construction

The face of the Indian production industry, which changed into already suffering with terrible
control and a loss of monitoring of its labour force, misplaced its critical rein absolutely as
COVID-19 unfold throughout the sector in April 2020
The Pandemic disrupted the price chain gadget in numerous factors and scales.
Construction material availability and cost inflation have become farther more important
issues. The loss of well-timed execution because of lockdowns contributed to value
overruns, giant delays or even the cancellation of tasks. The cancellation and stalling of
tasks without delay impacted the MSMEs (micro, small and medium enterprises), a lot of
which had been compelled to shut-down, save costs or cut down on operations. This have
become mainly stressful for the reason that production quarter frequently accommodates
small-scale specialty production corporations and layout studios. In the midst of the
pandemic fuelled chaos of this already hard to view and hard-to-manage industry, client
sentiments fell, and the sector's demand-intensive nature introduced additional stress.

The Reason for this is described with the following points below:

Supply chain management

The supply chain has been disrupted in various ways in different parts of the world.
Various construction materials are necessary but for the pandemic these do not reach the
site from the outside which hinders the construction work. The various materials that come
from different factories in the country or abroad through different vehicles for construction
work, these things could not come. Not all vehicles can come to the sites thus due to the
lack of the required materials, so work is stopped. Not only has this shut down the
construction industry, but it has also damaged the livelihoods of those who transport these
items in vehicles, and the factories that produce all of these materials are also losing a lot of
money because they don't. are not sold.

All transportations in the country have been disrupted due to lockdown in all parts of the
country. That’s why no materials are arriving in the construction sector and no workers are
able to come to work from their home. That’s why the work has stopped.

First, workers cannot get to their workplace because the transportation system is completely
closed. Second, the disease is caused by viral infection, so workers are more likely to spread
the disease when they come into contact with each other. Therefore, many workers do not
want to come to work. In addition, it is not possible to make workers work without any
protection.

Companies are suffering enormous economic losses as a result of this lockdown. This is
why companies are unable to pay their employees adequately and the company is laying off
many workers. Because of this, many jobs were ripped off. Their families are also going
through many hardships due to the loss of their jobs.In short, a worrying situation arose.

Aviation:

The COVID-19 pandemic situation has had a significant impact on aviation industry due
to travel restrictions and a huge decrease in demand among travellers. There was a
significant reduction in passenger numbers which has resulted in flights being cancelled or
flying empty planes between airports, thereby massively reducing revenues for airlines. It
also forced many airlines to lay off employees or declare bankruptcy. Some of the Airlines
also attempted to avoid refunding cancelled trips to diminish their losses to an extent. There
were also cases of laying off employees from Airport manufacturers and airport operations.
Indian airlines have been reported a loss of US$600 million (does not include state-owned
Air India) for the quarter of January–March. A rescue package has been planned by the
government of India for the aviation industry for as much as ₹120 billion (US$1.6 billion).
Both domestic passenger and international passenger traffic declined at a Compound
Annual Growth Rate (CAGR) of -9.02% and -28.64%, respectively, due to COVID-19-related
restrictions on planes in Financial Year 2020-21(FY21). In India airports pegged the
domestic passenger traffic to be approximately 105.2 million, a 61.7% Year-Over-Year
decline, and international passenger traffic to be approximately 10.1 million, an 84.8% Year-
Over-Year decline, over the financial year. According to Indian Aviation Industry Report of
September, 2021, in between FY16 and FY21, the freight traffic declined at a CAGR of -1.77%
i.e., from 2.70 million tonnes (MT) to 2.47 MT. There is a potential for the freight traffic on
airports in India to reach 17 MT by FY40.

Retail:

The COVID-19 pandemic situation has resulted in a vast economic turmoil and boost on the
retail industry worldwide including India. Various retailers and shopping centres were
compelled to shut down for months due to mandatory lockdown orders. In one hand offline
retailers faced a huge set back while on the other hand as a result of these closures, Online
retailers received a huge boost in sales as the customers looked for alternative ways for
shopping.
There were various challenges faced by the offline retailers such as Shrinkage of business,
decrease in consumption by almost 30% due to the fear of disease, loss in income and also
fear in job security, diminishing brand loyalty and operational difficulties such as managing
the supply chain disruptions, restriction in the footfall of the stores due to the social
distancing, hygiene improvements as per the local governance, reduction in promotional
campaigns so as to avoid crowding. As per Kearney Research, India’s retail industry is
projected to grow at a slower pace of 9% over 2019-2030, from US$ 779 billion in 2019 to
US$ 1,407 billion by 2026 and more than US$ 1.8 trillion by 2030.
While E-Retail has been a boon during the pandemic and according to a report by Bain &
Company in association with Flipkart ‘How India Shops Online 2021’ the e-retail market is
expected to grow to US$ 120-140 billion by FY26, increasing at approximately 25-30% p.a.
over the next 5 years. India has the third-highest number of e-retail shoppers (only behind
China, the US). The new-age logistics players are expected to deliver 2.5 billion Direct-to-
Consumer (D2C) shipments by 2030. Online used car transaction penetration is expected to
grow by 9x in the next 10 years. During the festival period in 2020, despite the pandemic
situation, Amazon, Flipkart and various vertical players sold goods worth US$ 9 billion.
Insurance:

The COVID-19 pandemic situation had a mixed effect on the insurance industry. The
insurance industry provided both life and non-life or general insurance. The effect of COVID-
19 on the insurance industry was not uniform. While some products saw a significant
increase in business, while others saw a significant decrease.
The insurance penetration of India was pegged at 4.2% in FY21, with life insurance
penetration at 3.2% and non-life insurance penetration at 1%. According to IBEF, India’s
overall density stood at US$ 78 in FY21 in terms of insurance density.
Insurances such as motor, marine, fire, house, travel, airlines etc. are seeing a significant
drop in business, while health insurance is experiencing both an increase and a decrease in
business. The number of claims has grown in the health insurance industry which resulted in
a decrease in cash flow. Whereas the number of new clients who have acquired health
insurance has climbed, indicating company growth.
The trends in this sector also taught us to be cautious about the health issues and to be
ready for any such difficult circumstances in future.

Information Technology:

The sector that had not got negatively impacted by the Covid-19 pandemic situation, but
there was also a silver lining for them in this situation – and here we’re putting light on one
of such prominent sectors i.e., Information Technology (IT). The IT industry has not only
tackled the current situation decently to keep their workflow continuously running, but it has
also been the saviour of various other businesses as well.
According to National Association of Software and Service Companies (Nasscom), the
revenue of Indian IT industry is estimated to reach US$ 194 billion in FY21 i.e. an increase of
2.3% YoY. According to reports by Gartner, the spending of IT in India is estimated to reach
US$ 93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5 billion in 2022.
In the year 2020, the new hiring record for the IT industry was 138,000. According to STPI
(Software Technology Park of India), the exports of software by its registered units
increased by 7% YoY i.e., Rs. 5 lakh crore (US$ 67.40 billion) in FY21 from Rs. 4.66 lakh crore
(US$ 62.82 billion) in FY20, which is essentially driven by rapid digitization and the IT
industry's timely transition from the usual work culture to the new normal i.e., remote
working environments which sustained to keep up the industry’s growth amidst Covid-19
pandemic situation. The Government of India has plans to focus in areas such as
cybersecurity, hyper-scale computing, artificial intelligence and blockchain. The revenue of IT
industry is estimated approximately US$ 194 billion in FY21, an increase of 2.3% YoY. The
domestic revenue of the IT industry is estimated approximately US$ 45 billion and export
revenue is estimated approximately US$ 150 billion in FY21.

Financial Technology (FinTech):

The COVID-19 pandemic situation continues to create uncertainties. There are many fintech
companies (“fintechs”) who are under stress on a number of fronts. Access to funding was
already becoming difficult, especially for the early-stage ventures, as many investors
focused only on established fintechs with clear business models (such as GPay, Phone Pe,
PayPal etc.). In addition to the mentioned scenario, recent interest rate cuts and the
economic slowdown has changed many industry assumptions radically. Now, as the broader
economy shifts from respond to recover, the COVID-19 situations may create some new
opportunities for various fintechs. As we are all aware that social distancing has taken hold
worldwide so there has been huge growth in the use of digital financial services and e-
commerce.
The Fintech industry has come a long way in automation and transformation of the delivery
of financial services. This sector has re-established other business sectors with the adoption
of various digital methods such as the introduction of Unified Payment Interface (UPI) that
helps organisations strategically achieve a commendable position in the market. With the
rapid pace of digital revolution, the fintech market is expanding continuously amidst the
COVID-19 pandemic situation. According to the estimates, the Indian fintech market was
valued approximately Rs 1,92,016 crore in 2019-2020 which is projected to reach Rs
6,20,741 crore by 2025 at a CAGR of 22.7%.
The various Fintechs help the country to proceed towards the goal of financial inclusion
which will keep pushing the business sectors forward in future.
Banking

The COVID-19 pandemic situation has indeed negatively affected the Indian Banking sector.
Whereas the crisis also will strengthen competitive pressures on banks by positively
accelerating trends towards digitalisation and new financial service providers.
The banking sector is mostly affected indirectly such that many firms and industries have
been stopped working during the lockdown period, do not earn revenues, and therefore
failing to repay loans on time. Similarly, households with members those who do not have
jobs or are furloughed have less income, therefore might not be capable of repaying their
loans. This will result not only in lost revenue but also in losses (if repayment capacity is
permanently impaired), negatively affecting profits and bank capital.
The Covid-19 pandemic is likely to result in a major shift over in savings and risk to
households. This major shift might increase the flow of savings in bank deposits among the
instruments of savings, which are considered safe always. It will also increase the demand
for loans from banks.
According to the RBI, the bank credit stood at Rs. 109.12 trillion (US$ 1.47 trillion), as of
September 10, 2021. Credit to non-food industries stood at Rs. 108.42 trillion (US$ 1.46
trillion), as of September 10, 2021. As the digitalisation, in August 2021, Unified Payments
Interface (UPI) recorded 3.55 billion transactions worth Rs. 6.39 trillion (US$ 86.14 billion).
Manufacturing & Industry Sector

Defence

Expenditure on modernisation of IAF (in Rs

Expenditure on modernisation of Navy (in Rs crore)
crore)

The CAG raised questions related to the IAF capital acquisition process. In its report (2019),
the CAG examined 11 capital acquisition contracts signed between 201213 and 201718, for
a total value of approximately Rs 95,000 crore. He found that the current procurement
system was unlikely to support the operational readiness of the IAF and recommended that
the Defense Ministry undertake structural reforms of the entire procurement process.
The Estimates Committee (2018) estimated that there should be 70% aircraft uptime, as
aircraft must undergo standard maintenance checks. However, as of November 2015, flight
operations were at 60%. mission capable at some point.
August 2020, the Ministry of Defense published a list of 101 items for which there will be an
import embargo (ban).

Total procurement from foreign and Indian

vendors (2014-15 to 2019-20) (Rs crore)

Category DPP-2016 DAP-2020

Buy (Indian-IDDM) 40% or more 50% or more

Buy (Indian) 40% or more 50% or more (for indigenous

design)

Buy and Make (Indian) 50% or more of ‘Make’ 50% or more of ‘Make’ part

part

Buy and make Not specified Category not present

 Buy (Global-Manufacture in India) Category not present 50% or more

Buy (Global) Not specified 30% or more (for Indian vendor)

The Buy and Manufacture category refers to an initial purchase of equipment from a foreign
supplier, followed by the transfer of technology.
Increase in the FDI ceiling
In September 2020, the FDI ceiling under the automatic channel rose from 49% to 74% [23].
FDI above 74% is allowed with government approval, which can be granted where FDI is
likely to be destined to access modern technology.

Power Industry

India's peak energy demand in FY21 was 1.31% lower than the previous year, even as the
country emerged from the shadows of the Covid-induced slowdown. This indicates a lack of
robust growth, with demand towards the end of
the year not rebounding until mid-2019. Peak
energy demand, which reflects per capita
consumption, showed flat growth. It grew 3.8%
YOY and demand in March was 23% higher than
last year.

Thermal energy is benefiting from the recovery

in demand. The load factor (PLF) of the entire
Indian plant, or thermal units operating ratio,
stood at 63.27% in February of this year,
compared to 60.27% in February of the year.
last.
,
NTPC, India's largest thermal power producer,
recorded 8.2% production growth in FY21.The company said the year saw the highest
generation on record at the group level.
Industrial and commercial consumers are generally the main drivers of energy demand,
followed by the agricultural and residential sectors. Production units are declining and
several office complexes are now open with full or partial capacity.
The demand for electricity is a reliable indicator of economic activity. As shown in Figure 2,
energy demand in India has recovered in line with the increase in commercial and industrial
activity (CandI), as evidenced by trends in the Purchasing Managers Index (PMI ). the
evolution of monthly demand is strongly correlated (0.88) with the composite PMI values
observed between March 2020 and February 2021.
States with more domestic and agricultural loads (DandA) recorded a greater increase in
demand. After the lockdown, states with a greater share of DandA consumption, such as
Karnataka and Madhya Pradesh, experienced a moderate decline followed by a significant
increase in energy demand (Figure 3).
 By comparison, states with a high share of
CandIe consumption experienced a sharp
decline in demand followed by a moderate
increase. Gujarat, Odisha, Uttarakhand and
Himachal Pradesh experienced a drop in
demand in April of 44%, 35%, 80% and 92%
respectively. As restrictions were relaxed
ahead of the October-November vacation,
energy demand in these states picked up,
mainly as a result of pent-up demand for
products and services.
The variation in the economic recovery
between sectors better explains these trends.
In FY21, India's agricultural sector is expected
to grow by 3.4%, while the industrial and service sectors are expected to contract by 9.6%
and 8.8%, respectively. may have resulted in increased demand, with consumers confined to
their homes during the summer months. India's peak electricity demand of
hit an all-time high in winter. In January 2021, historic peak demand levels in India were
subsequently exceeded four times, from the previous record high of 182.6 GW on May 30,
2019 to 189.6 GW on January 31, 2021 (Figure 4).For the first time in at least four years,
winter morning peak demand is the highest annual peak, exceeding the afternoon summer
peak. This could be due to higher heating loads

and increased economic activity. These trends indicate that the demand for energy in India
is increasing, driven by the increasing demand for energy for cooling / heating. During the
summers of 2021, most

Energy demand
Energy demand met

Gems and Jewellery

India's gem & jewellery exports have been picking up since the start of the year and have
maintained the momentum through the first half of the fiscal year. During April to September
2021, the overall gross exports of gems & jewellery recorded a growth of 11 per cent to Rs
1,40,413 crore (or +5.13 per cent in dollar terms to $18,984 million) as compared to April-
September 2019 of Rs 1,26,462 crore ($18,058 million).
Monthly Export and Imports 2020-2021

Destination wise Export and Imports 2020-2021

Commodity Wise Exports and Imports 2020-2021

Infrastructure:
Budget Allocation for Infrastructure:
In the Union Budget 202021, the Government has given a massive push to the infrastructure
sector by allocating Rs. 1,69,637 crore (US$ 24.27 billion) to enhance the transport
infrastructure.
The Government of India allocated Rs. 111 lakh crore (US$1.4 trillion) under the National
Infrastructure Pipeline (NIP) for FY 201925.Sectors such as energy (24%), roads (18%),
urban (17%) and railways (12%) amount to ~71% of the projected infrastructure investments
in India.

Increase In Private Sector Involvement:

Private investment into physical and social infrastructure is key to putting India on a high
growth trajectory, which will make it a US$ 5 trillion economy by 202425.
Yearly private equity (PE) and venture capital (VC) investment in India is expected to surpass
US$ 65 billion in 2025.
Logistics Development:
The logistics sector in India is growing 10.5% annually and is expected to reach US$ 215
billion in 2020.
India was ranked second* in the 2019 Agility Emerging Markets Logistics Index.
Increase In FDI:
FDIs in the construction development sector (townships, housing, built up infrastructure and
construction development projects) and construction (infrastructure) activities stood at US$
25.78 billion and US$ 17.22 billion, respectively, between April 2000 and September 2020.
Demand for Infrastructure:
India has a requirement of investment worth Rs. 50 trillion (US$ 777.73 billion) across
infrastructure by 2022 for sustainable development in the country.
Policy Support by Government:
With initiatives like ‘Housing for All’ and ‘Smart Cities Mission’, the Government of India is
working on reducing bottlenecks and impeding growth in the infrastructure sector.Rs. 2.05
lakh crore (US$ 31.81 billion) will be invested in the smart cities mission. 100�I is permitted
under the automatic route across various infrastructure sectors.
The ‘North Eastern Region for Social and Infrastructure Development Fund (SIDF)’ projects
worth Rs. 586.20 crore (US$ 80 million) were sanctioned.
Investment Increment:
Huge investments in infrastructure (e.g., Reliance Digital Fibre Infrastructure Trust
Investment of US$ 1 billion) have provided momentum to overall PE/VC investments in India.

Construction development sector and infrastructure activities sector received FDI inflows
amounting to US$ 25.78 billion and US$ 17.22 billion, respectively, between April 2000 and
September 2020.
Infrastructure Growth:
In March 2020, NHAI accomplished the highest ever highway construction of 3,979 km of
national highways in FY20.
Freight earnings in FY20 stood at Rs. 113,480.65 crore (US$ 16.10 billion), while its gross
revenue stood at Rs. 174,660.52 crore (US$ 24.99 billion) during the same period.
Cargo traffic handled stood at 707.4 million tonnes (MT) in FY20
Electricity production in India reached 1,252.61 BU in FY20.
In December 2020, Prime Minister Mr.Narendra Modi inaugurated the 351km ‘New Bhaupur
New Khurja section’ in the Eastern Dedicated Freight Corridor (EDFC), Uttar Pradesh.
In December 2020, the Cabinet Committee on Economic Affairs (CCEA) approved three
infrastructure proposals worth Rs. 7,725 crore (US$ 1.06 billion) to set up greenfield
industrial cities to enhance connectivity to major transportation corridors such as the
eastern and western dedicated freight corridors, expressways and national highways.
Petroleum and chemical industry:

Petroleum

Gas pipeline network of 33 764 km authorized throughout the national territory with the aim of

creating a national gas network. About 19,998 km of pipeline are operational and 15,369 km under

construction.

India has experienced a steady increase in the production and consumption of petroleum products

over the years. The production of petroleum products amounted to 262.94 MMT during the year

2019.20 The production of

crude oil in July 2021 was 2,548.78 MTT and the cumulative production of crude oil from April to

July 2021 was 9,961.65 TMT.

Natural gas production in July 2021 was 2,891.96 MMSCM and cumulative natural gas production in

April and July 2021 was 11,060.07 MMSCM

74 lakh new LPG connections were issued by OMC during 2021. The supply of liquefied natural gas

(LNG) is progressing on both coasts with 5 new LNG terminals and 1 extension project under

construction, 3 on the west coast and 2 on the east coast. With the projects under construction, the

overall capacity will reach 62.5 MMTPA.

Chemicals

Chemicals and petrochemicals market expected to reach $ 300 billion by 2025

India ranks ninth for exports and sixth for imports of chemicals (excluding pharmaceuticals) globally

Exports of organic and inorganic chemicals were valued at $ 2230.15 billion in August 2021 with a

positive growth of 35.75% compared to exports of $ 1642.82 billion in August 2020.

Product demand chemical industry is expected to grow by around 9% per year in 202025

India's chemical industry employs more than 2 million people

Fertilizer production (weight: 2.63%) increased by 0.5% in July 2021 compared to July 2020.Crude

and Petroleum Products Stats

Pharmaceuticals:

Indian pharmaceutical exports amounted to US $ 20.70 billion in fiscal year 20 and to US $

24.44 billion in fiscal year 21.
The size of the market has grown from 'approximately Rs 1,300 billion in June 2019 to Rs
1,400 billion in June 2020, a month affected by the coronavirus pandemic and the blockade.
For comparison, June 2021 saw the market grow 11.7%, driven by a price increase of 5.3%
and growth of 4.1%.
The inflow of foreign direct investment (FDI) in the Indian pharmaceutical and
pharmaceutical sector amounted to 17.75 billion dollars between April 2000 and December
2020.
In 2021, the government approved a program of related incentives to the production (PLI)
of $ 955 million to encourage the production of major raw materials, drug intermediates and
APIs.
In FY20, 32.1% of India's pharmaceutical exports went to North America, followed by 17.96%
to Africa and 15.70% to the European Union.
Indian formulation grew 18% and bulk drug exports increased 9% year-on-year in the first
half of FY21, according to a report by Crisil.
As of May 2021, India provided a total of 586.4 lakh of COVID19 vaccines, including
subsidies (81.3 lakh), commercial exports (339.7 lakh) and exports under the COVAX
platform (165.5 lakh), in 71 countries.
The Indian medical device market was worth $ 10.36 billion in fiscal year 20. India's generic
drugs account for 20% of global exports by volume, making the country the largest supplier
of generic drugs in the world.

Textile:

After being hit hard by COVID19, India's textile industry is recovering. During the pandemic,
the home textiles and clothing industry fell to $ 75 billion after peaking at $ 106 billion in
fiscal 2020. This was a notable turnaround in technical textiles. In terms of value, imports of
technical textiles exceed exports by Rs 1,058 crore in FY20, while exports of AF21 exceed
imports by Rs 2,998 crore.The textile and clothing industry contributes 2.3% of the country's
GDP, 13% to industrial production and 12% to exports. The textile industry has about 45
million workers employed in the textile sector, of which 3.5 million are loom workers. a
national textile technical mission is proposed for a period from 202021 to 202324 with an
estimated expenditure of Rs. 1,480 crore (US $ 211.76 million). Production Incentive
Program (PLI) worth Rs 10,683 crore (US $ 1.44 billion) for synthetic fibers and technical
textiles over a period of five years. India is the world's largest producer of cotton.Production
increased from 30.0 million bales in AF16 to 37.10 million bales in AF21. In FY19, fiber
production in India was 1.44 million tonnes, which reached 2.40 million tonnes in FY21. May
2021.
transport corridors such as dedicated freight corridors to the east and west, highways and
national roads.
Tourism:

The fear of getting infected from covid-19 affected all the sector of Indian economy among which tourism
is one of the most affected sectors. Due to the worldwide lockdown for covid-19 hotels are closed, airplane,
train also stopped running and all countries put travel restrictions on national and international travellers.
From the data we can see during HY, 2020 total revenue of the companies is around Rs. 7795 crores
whereas for the same period of last year the companies earn around Rs. 31431crore which implies the
companies can manage only 24.8% revenue compared to the previous financial year and from the loss
perspective companies earn a loss of almost Rs. 4162 crores in quarter 1(they have earned almost Rs.
1642 crore profit in Q1 in last year) and also a loss of almost Rs. 1661 crore in quarter 2(they have earned
almost Rs. 1231 crore loss in Q2 in last year). That means the companies all total earns extra loss of
almost rs.5412 crore.

This affect the earning per share (EPS) of all companies, where in the year of 2019 EPS was festive 109.38
there in 2020 half year EPS became negative Rs. 212.21
Media and entertainment industry:

The pandemic created by covid-19 has been impacted on every industry all over the India among which the
media and entertainment sectors are also present. Due to the lockdown all over the India, public gathering
has been strictly prohibited and cinema halls, theatres, different live shows have been cancelled
immediately. Many serials, making of movies have stopped and delayed. The media industry workforce has
largely involved of spontaneous staffs that aren't allowed to paid leaves and so many of them lost their
earnings for living. But in this tough situation the OTT platforms shows a silver lining in this industry. As per
a KPMG report, as people are restricted to be in their homes, the intake of media on OTT platforms has
seen a surge both in time spent and new viewers. In the M&E sector, Animation, Visual Effects, Gaming and
Comic (AVGC) sector was seen a growth of ~29%, while the audio-visual sector has risen ~25%. The Omdia
report (published in 2021states that, the SVOD market of India, reached ~62 million subscribers in OTT
platfrom in 2020 from ~32 million in 2019.

Healthcare:

Outbreak of covid-19 imposed a mixed effect on health care sector. In one side treating of covid-19
patients while on the other side unavailability of beds and infrastructures and on another side all clinics are
closed due to restrain the spread of infectious covid-19 which ultimately affect the patients other than who
are affected from covid-19 who are afraid of visiting hospitals due to Covid-19.

But due to this, consumer behaviour is changing which demands change in health care provider.
Consumers are depending on online medical stores more and more. According to a survey more than 90%
of respondents expressed fear to visit hospital and 70-80% of respondents gave a positive response about
home care setting across consultation, diagnostics and day care service.
Logistics:

Where there is mostly negative impact on every corner of the Indian economy their E-commerce market
shows a reverse flow of this situation. In fact, it is one of the very few industries where a positive growth
has been shown from the beginning of this situation. Due to the strict lockdown imposed all over the
country many small and medium businesses started to sell online. Our country also witnessed D2C brands
evolving and seeing steep progress.

Printing:

The printing industry also saw a negative growth due to the spread out of novel corona virus.

According to the report advertising volumes declined by 20%-25% due to the lockdown imposed all over the
country. Regional ads also are dropped by15% during this time. As the shooting is also prohibited during
the lockdown, production of new ads of the companies had stopped and old ads took these places.

Telecommunications:
The telecom industry plays a vital role and has significant contribution during covid-19 outbreak. That’s why
during the lockdown when only essential commodities are available the Ministry of Home Affairs issued
telecommunications, internet facilities, broadcasting and cable services and IT-enabled services as
essential services.

According to report overall network traffic has increased by 10% and in OTT service, increase in viewership
spiked up to 20% which sets different challenges for this industry.

As the infrastructure of the industry is not compatible to handle this type of situation so they asked to
different OTT providers and online streaming site to reduce their video quality and ad services to compete
with the rising traffic so that the service not crashed.

Due to the lockdown new infrastructure and hardware implementation got delayed. And due to jobless
condition, many companies witnessed downward graph in new customer sector. So, the revenue of the
companies decreased.

Foreign Trade:

Indian many products like sea food, petrochemicals, gems etc. has a big market in foreign countries,
especially in China. But due to the covid-19, lockdown has imposed all over the country which affect the
foreign trade. Fisheyes sectors lost more than 1300 crores for the restrictions in exporting. Due to the
cancelation of exporting of several items cost almost 8000-10000 crores loses for the Jaipur alone.

Employment

The COVID-19 pandemic situation has affected lives and livelihoods of major workforce in our country, and
around the world. Almost all the sectors of the economy and their working population have been adversely
affected by the current situation. The workforce on the labour market is at much greater risk because of
various factors such as their migrant workers status, lower wages, lower level of educational qualification
etc. Efficient steps must be taken by government and individuals, to increase the rate of efficiency and
boosting living conditions to a higher level for sustainable economic growth.

Income and Consumption

The COVID19 pandemic has caused a sharp reduction in economic activity in India. We use the CMIE
Consumer Pyramids household survey to examine the timing, distribution and mechanism of the impacts
of this shock on income and consumption up to December 2020. First, we estimate large and
heterogeneous income declines. , with ambiguous effects on inequalities. . While the income of employees
fell by 35%; day laborers' incomes have fallen by 75%. At the same time, we find that income has fallen the
most for individuals in households in the top income quartile.Second, we document an increase in tampon
revenue bumps by transforming professions. In the food sector, containment appears to have succeeded in
distinguishing between essential and non-essential services, at least to the extent that it has not increased
the relative price of food. There is evidence to suggest that price shocks outside the food sector have been
greater in places where COVID19 cases are higher, even during the lockdown.
Source:

1. IBEF - Business Opportunities in India: Investment Ideas, Industry Research, Reports | IBEF. (2021)., from
https://www.ibef.org/

2. Statista – Statista - The Statistics Portal. (2021). Retrieved 22 November 2021, from
https://www.statista.com/

3. MoSPI - Ministry of Statistics and Program Implementation | Government Of India. (2021). Retrieved 22
November 2021, from http://mospi.nic.in/
4. InvestIndia - Investment Promotion and Facilitation Agency | Invest India. (2021). Retrieved 22 November
2021, from https://www.investindia.gov.in/

5. Benedek, D., Gemayel, E. R., Senhadji, A. S., & Tieman, A. F. (2021). A Post-Pandemic Assessment of the
Sustainable Development Goals. Staff Discussion Notes, 2021(003).

6. Kaur, P. (2021). A shift in Macro Economic Policies post COVID-19.

7. Qureshi, N. I. Post Pandemic Challenges for India’s Economic retrieval.

8. Baria, B.P., 2020. COVID-19 Pandemic as a Set of Economic Shocks in India: A Short Note. Economic
Affairs, 65(3), pp.439-443.