RESEARCH PAPER ON

Impact of Coronavirus on the Indian Economy

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Author & Co-author

Mr. Sasan Nilesh Maru – Roll No. 40

Sasanmaru352@gmail.com

Ms. Roshni Shreekumar Mudliyar – Roll No. 42

Roshnimudliyar01@gmail.com

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Abstract
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Pandemics such as SARS, MERS and COVID 19 have triggered massive adverse waves on
populace across the globe. This article deliberates the influences of COVID 19 on Indian
economy in various ways. The researcher has collected information from secondary sources.
Few suggestions are provided for the better understanding of the government and public
during the outbreak of flu. Conclusions – pandemic is spread around the world and the impact
is there on all the countries’ economies.

Keywords:
Coronavirus, R-nought, SARS, MERS, Economy.

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Introduction
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Coronavirus1 outbreak changed into first mentioned at Wuhan, China in December, 2019.
Coronavirus (COVID) is a big circle of relatives of viruses that reasons illness. It ranges from
the common bloodless to greater severe sicknesses like Middle East Respiratory Syndrome
(MERS-COVID) and Severe Acute Respiratory Syndrome (SARS-COVID). An epidemic is a local
outbreak of an infection that spreads unexpectedly, pandemic is the global unfold of a brand
new disease that impacts massive numbers of human beings. The technical call for the
coronavirus is SARS-CoV-2. The respiratory disease it reasons has been named the
“coronavirus 2019,” or COVID-19. The incubation length is the time it takes for signs and
symptoms to seem after someone is infected. This time may be important for prevention and
manipulation, and it permits fitness officers to quarantine or have a look at folks that may
additionally be exposed to the virus. The new coronavirus has an incubation period of two to
fourteen days, according to the CDC, with symptoms performing about five days after
infection in maximum instances. The virus2 can effortlessly spread in dense places — in a
packed subway vehicle, or at a rally or live performance. Social distancing refers to measures
that might be taken to grow the physical area between people to slow the unfold of the virus.
Examples encompass operating from home, school closures and the postponement or
cancellation of mass gatherings. This is key to retaining the virus from spreading, alongside
measures like social distancing, common hand-washing and carrying mask, Self-quarantine.
While isolation refers to setting apart sick human beings from individuals who aren’t unwell,
quarantine refers to the separation and limit of motion of folks who were exposed to the virus
to see if they grow to be unwell. The fatality rate is the variety of deaths divided via the total
range of confirmed instances. Eventually, scientists hope to have a greater complete quantity
known as the infection fatality rate, which includes anybody who turned into infected with
the virus. The R-naught, or R0, is an endemic’s fundamental reproductive quantity an
epidemiologic metric used to describe the contagiousness of infectious agents. The virus’s
excessive transmission rate has made it difficult to efficiently incorporate the outbreak.
Containment refers to the usage of any to be had gear to mitigate the spread of an ailment.

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Methodology
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The data used in this study is derived from secondary sources as this is an informative article
which enlightens certain facts of the current pandemic situations prevailing in the country.
The secondary sources contain journal articles, published papers, books on COVID 19,
epidemic and pandemic across the globe by various authors.

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Objectives
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• To identify the impact of Covid-19 on Indian economy
• To suggest the government for inventive solutions in controlling the situation.
• To measure the performance of company during COVID-19
• To identify the impact of COVID-19 on each industry

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Limitations
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• There are various sectors in India, but the researcher has taken data related to few sectors
from online sources which are revealed before drafting the paper. Hence major sectors were
not included.
• As the information pertaining to this research article was extracted from various secondary
sources, hence the outcomes, findings and suggestions may not be generalised to others
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Impact of Covid- 19 on the Indian Economy
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Up to a large quantity, it'll impact the Indian enterprise. In imports, the dependence of India
on China is big. Most Of the pinnacle merchandise that India imports from the world, China
accounts for a widespread proportion in most of them. Export-Import Data was taken and the
total trade of 185 countries is provided by the Ministry of Commerce & Industry, India on its
website. In this research article the researcher has considered only the top 3 countries. India
has exported goods worth ₹ 1860696.76 crores during April 2019 to January 2020 to 185
countries. India has imported goods worth ₹ 2840357.57 crores from all the countries during
April 2019 to January 2020 from 185 countries, where total trade was done at ₹4700968.60
crores and the total balance of trade was done at ₹ -979660.81 crores. Total trade means
adding the values of exports and imports, whereas total balance means the subtraction of
exports with imports. India is importing more of its goods from China. India has done an
export business of ₹ 588133.04 crores (31.61%), and imports worth ₹ 804898.77 crores
(28.34%) from the top three countries which is listed above. India8 is one of the most affected
financial prudence due to the epidemic and sluggish manufacturing process in China, with a
business impact of 348 m$. For India, the commerce effect is assessed to the maximum
especially for chemicals sector at 129 m$, automotive sector at 34 m$, electrical at 12 m$,
textiles and apparel at 64 m$, leather sector at 13 m$, wood products and furniture at 15 m$
and metal products at 27 m$ and the biggest problem haunting companies is that their
business continuity plans (BCPs)9 are being tested and reworked a day given. “For any
organisation, the most important challenge immediately is business continuity. A corporation
like PVR, which garners revenue within the range of Rs 300 crore per month, is watching a
situation where revenue is nil because all theatres are shut. Therefore the question is the way
to sustain the fixed charge. Nobody knows how long it'll last and the way soon India will
recover.

Automobile sector:
(BS IV) As10 most of the people in the country are witnessing with the symptoms of COVID
19, the states have voluntarily locked down to prevent from getting disease-ridden. So, the
major sector of Indian sub-continent i, e automobile industry has seen the crunch in sales.
The counter sale has gone down by 70% on BS-IV models and the highest court of the country
has declared that the registration for old models should not be done post March 31, 2020,
which is a major blow to the finance.

Tourism sector:
Pandemic has devastating effect on India’s tourism11 sector, which includes hotels, travel
assistances, tour operatives, local guides etc. It is estimated that around ₹5 lakh crore is at
stake and 4 crore people will lose their employment during this lockdown, as reported by CII.
Digital media:
Common man has devoted most of his time on social media, apps and websites during the
lockdown period. It is assessed that people visited news portals in the month of March 2020
and the number has surged up by 50%, at the same time online gaming has improved number
of players by 21% during the first fortnight of the month. On an average an Indian13 was
spending 150 minutes per day but post lockdown it was 280 minutes per day

Relief to the government:

(CSR) Ministry of Health & Family Welfare, GOI, has appointed Mr Amitabh Bachan as their
brand ambassador for spreading awareness video message on coronavirus, Tata Trusts
Chairman Ratan N Tata announced a huge ₹ 500 crore to combat the pandemic. M&M has
offered all its resorts to use as care centres and along with that they are making low cost
ventilators, Mr. Anil Agarwal, CEO of Vedanta Resources Limited has donated ₹100 crores,
Ambani’s RIL has planned to set up a 100 bedded special hospital for the ill people at Mumbai,
in a press note SBI’s Chairman Mr. Rajnish Kumar pronounced that SBI will offer 0.25 per cent
of its annual profit to help fight Covid-19, majorly Wipro has offered ₹1125 crores to PM relief
fund.

Fuel consumption:
Since17 the lockdown was announced by the Prime Minister of the country, it is observed
that the consumption of liquid fuel has gone down. Overall demand of fuels was down casted
by 10-11% in the first fortnight of March 2020. It’s18 witnessed because of the cancellation
of flights, usage of fuel for industrial consumption. Jet fuel slumped by 10%, diesel by 13%
and petrol by mere 2%.

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Findings
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1. Lakhs of litres of fuel (petrol/diesel) is saved as all the people are indoor.
2. There is no impact on Gold and precious things.
3. Skies have become clearer, with the temporary break of not using vehicles and industrial
operations.
4. No honking have reduced the AQI, throughout the nation.
5. Contagion has caused major communal and financial disturbance in the nation.
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Suggestions
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1. Major suggestion to the government is that every year, one week or one fortnight
lockdown has to be implemented to maintain the peace and tranquillity with the nature.
2. So far India has imported lots of goods and products from China (toys, electrical etc),
so need to work on the items and start producing them locally and slowly avoid Chinese
products.

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Conclusion
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The universal trade and industry curve will be very dissimilar than was expected only a few
days ago. Figuring out with the numerous deaths caused out of various pandemics since ages
and its impact on the present day economy. Indian GDP has gone down by 2% during the
recent day lockdown. Majority sectors have tumbled and the labour are witnessing all time
low employment. It all started with the closure of educational institutes followed by others
including places of worship. Stock markets had major nosedives but no impact on Gold.
People across the country are facing so many problems but both the central and state
governments have tackled every situation very efficiently. So far no country has invented
vaccine but, substitute ways have identified.

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REFERENCES
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www.inventiva.co.in/trends/priyanka/impact-of-corona-virus-on-indian-economy
www.wikipedia.com
www.economictimes.indiatimes.com
https://edition.cnn.com/2020/03/31/asia/coronavirus-lockdown-impact-pollution-india-intl-
hnk/index.html
https://www.livemint.com/companies/news/companies-find-logistics-a-hurdle-to-
deliveries-11585934406551.html