Perspectives on Business Management, Economics & Information Technology (PBMEIT) Now also covers research on Psychology

PBME Volume I ISBN: 978-81-946245-3-0

IMPACT OF COVID-19 ON THE INDIAN ECONOMY

Author(s): MRS. B. SRAVANI KUMARI & MS. SRUTHI ANANTHAPALLI

Abstract

COVID-19 is an unfolding event bringing uncertainty in every aspect of the society. The safety of the people is the utmost priority. So is continuity of business and providing consistent and transparent financial reporting to stakeholders. As the coronavirus pandemic continues to wreak havoc across the globe disrupting lives and economies, various industries are grappling with the challenges posed by this unforeseen health menace. The global outbreak of coronavirus has adversely impacted business models, supply chain networks, and jeopardized business continuity operations. The UN Conference on Trade and Development states that the coronavirus can cost the global economy close to US$ 2 trillion. The potential impact of this crisis on the Indian economy is yet to be ascertained as the economic activity continues to slide. Both the corporate sector and manufacturing units will suffer due to the pandemic because their working capital gets chocked due to the standstill of work across sectors. With the burden of the working capital, they would also have to pay salaries to their employees. Doing so would strengthen the employee's loyalty, and the Government also suggests the companies not to cut their salary. Except for a few industries, everything will suffer.

Keywords: indian economy, pandemic impact, sector analysis, bank liquidity

JEL Classification: E50, D00, E00

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