THE PANDEMIC EFFECT ON INDIAN BUSINESSES

 HOW DID COVID-19 IMPACT THE BUSINESSES?

A whopping 67 per cent of small businesses and startups in the country are shut down or scaling down due to the COVID-19 Pandemic.

The second wave of Covid has left a trail of death and destroyed, ruined many businesses and start-ups. People have suffered huge losses both on professional and personal fronts.

While stories of newborn and young children left without parents grab news headlines, the stories of companies where the founder has suddenly passed away because of Covid and left the company grappling for survival is no less worrisome.

Compared to January 2020, 57% of businesses are closed.

However, there are a few industries, that have not only survived but have been able to capitalize on the opportunity swiftly. The global economy is counting on these industries to revive the markets.

1. Online Education & Remote Learning

The lockdown has provided many of us with the time we have been wanting to invest in ourselves. With more time in hand, people are turning to self-learning on online programs.
E-learning companies are also transforming and granting more flexibility and options to users so that they can use this time to reskill or upskill.

From schools, organizations to academies and multinational companies, wherever there’s a scope for learning, E-learning platforms are providing support. This trend is likely to grow even after the pandemic since remote learning has not only won as an effective alternative to classroom teaching but has also resulted as a convenient tool for many.

2. BFSI

Banking, Financial Services and Insurance will be some of the few industries that will work around the clock to help the flagging economy.

People and the market will be in need of loans to heal from their losses, while users will require their insurance to have been hit terribly by this crisis.

Banks have already begun to cut their rate of interest to help consumers get back on their feet as fast as possible. Their user-friendly policies will continue to preserve the businesses in the coming times.

3. FMCG 

Fast Moving Consumer Good is another business that will survive the economic fall, primarily the non-durable goods industry.

Throughout the pandemic, one of the few functioning bodies are the food and grocery stores and when all of this gets over, behavioural analysts predict that people will be in a celebratory mood, trying to make the most of their freedom.

Naturally, consumer goods such as food, beverage, everyday consumables will see a rise in sales.

4. News & Entertainment

In this lockdown, everyone is using more to the media for their daily dose of exposure to the world. As more people are switching to news channels to stay informed and aware of their economy and the status of the pandemic or for national broadcasts on safety measures and policies, media companies see a huge surge in consumption.

Subscription-based platforms like Netflix and Prime are also experiencing more engagement because of the lockdown and the boredom. If the pandemic continues, there are high chances that global consumers will behave similarly to the Chinese consumers who have taken the number of entertainment and gaming app downloads to a record high this year.

5. Pharma 

Where most industries are experiencing severe losses during the lockdown, the pharmaceutical industry is far from being affected by this destruction.

Pharmaceutical products are one of the fastest moving items in the covid-19 crisis. While pharma companies are competing with each other to give treatments for the coronavirus affected, investors are pitching in funds to fast-track the discovery of the vaccine.

Conclusion: 

The economy might take some time to recover, but when it does we’ll be better equipped to fight off the future hurdles.

The global economy is counting on the above-mentioned industries to revive the markets.