Business India TAC Special

Effects of COVID-19 on business

The world of work is being profoundly affected by the outbreak of the pandemic. The consequences of the coronavirus are unprecedented and felt around the world.
Pratyasha Mohanty

The COVID-19 outbreak is a sharp reminder that pandemics, like other rarely occurring catastrophes, have happened in the past and will continue to happen in the future. Even if we cannot prevent dangerous viruses from emerging, we should prepare to dampen their effects on society.

The pandemic is heavily affecting labour markets, economies and enterprises, including global supply chains, leading to widespread business disruptions. The current outbreak has had severe economic consequences across the globe. This not only has consequences for the economy; all of society is affected, which has led to dramatic changes in how businesses act and consumers behave.

We are slowly moving towards a gradual removal of the lockdown for some sectors or we can say for the parts of the economy. And it was need of the hour , as the government doesn’t have any other alternative other than focussing on lives and livelihoods. Because the small scale businessmen were affected the most , like the people engaged in hotel and dining and travel business got no work during this phase. Companies, especially start-ups, have implemented an indefinite hiring freeze.

At the same time, online communication, online entertainment, and online shopping are seeing unprecedented growth. Secondly the vegetable, grocerry and daily need suppliers are doing a fine business as they were allowed to carry on their business by following some stringent rules during the lockdown. Embracement of digital technology, either through online services or information-sharing platforms like Zoom,google meet etc. has kept people connected around the world. Digital services will become a necessity, rather than an alternative, for schools,colleges and businesses.

And even it’s important that the businesses must navigate the financial and operational challenges of coronavirus while rapidly addressing the needs of their people, customers and suppliers. The COVID-19 pandemic outbreak has forced many businesses to close, leading to an unprecedented disruption of commerce in most industry sectors. Retailers and brands face many short-term challenges, such as those related to health and safety, the supply chain, the workforce, cash flow, consumer demand, sales, and marketing.

As people have started to develop new skills, and take better care of where they live. For instance, they may learn how to bake, try to get fit, do a puzzle, or read more. There has also been an increase in purchases of cleaning products, bakery utensils , board games etc . Thus the manufacturersof such items saw a positive impact in their business. Even the pharma companies are doing well these days due to the need of medications and different safety products like sanitizers, gloves , disinfectants. Same way almost everyone is trying to include sanitisation facility in their services that are being provided for example the asian paints company has included sanitisation and special covid19 precaution norms , which is making their buisness approach very convincible infront of the consumers.

The COVID-19 outbreak is likely to cause bankruptcy for many well-known brands in many industries as consumers stay at home and economies are shut down.The travel industry is deeply affected; 80% of hotel rooms are empty, airlines cut their workforce by 90%, and tourism destinations are likely to see no profits in 2020. Furthermore,  conferences, sporting events, and other large gatherings as well as cultural establishments such as galleries and museums have been abruptly called off. Consulting in general and personal services, like hairdressers, gyms, and taxis, have also come to a standstill due to lockdowns. On the bright side, the COVID-19 pandemic offers great opportunities for companies to actively engage with their corporate social responsibility (CSR) strategies and agenda.

We are aware that India’s GDP has contracted (for the first time ever) by 23.9 per cent between April and June – far worse than economists’ estimates – has shown how severely the pandemic has exposed the nation’s capacities particularly as it relates to health and infrastructure.  But our government’s optimistic approach of Atmanirbhar Bharat mission would surely give a boost to our local businessmen and manufacturers to grow. So that along with ‘Make in India,’ we will also move ahead with the mantra of ‘Make for World.’

Everything can not be like past within a few days , it would take time. A proper approach and positive mindset would surely help to overcome this problem and soon our economy would again bloom.

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