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The largest democracy was facing a good and prospers growth in the term of economic with the expected GDP 4.8 % to 5% in 2019-2020. But with the aim of achieving the 5 trillion economies, Indian economy focuses on the all aspect of their own economy. Companies got a drastic growth in the Indian economy and FDI goes on hike. Various sector like manufacturing grow with the speed of 3.9% in 2019. Govt. also focuses on the growth on MSME. But Pandemic comes (The covid-19) company even whole world got locked in their homes ,destroyed all the various beautiful dreams, and gives a shock to whole word, expert said the pandemic comes from city Wuhan of china.
Moreover, china was the first city where the first report of covid comes from. However, slowly it is takes places or gives its presence to whole world; Even India is also suffering due to this pandemic (covid-19). Covid-19 drastically attack the mostly to European countries like U.S.A, Italy etc. Now a day with this Covid- 19 world facing lots of problem with life and economy of a country. Even the largest economies like U.S., china, etc. also facing a problem of crises. Expert suggest the lockdown is the best measure for tackle from this problem ,so all the world go with the expert the whole world locked their whole country , they stop their all manufacturing plant and service sector as well , the whole world just look like an hanged computer, all the aviation be stop due to spreadable pandemic. All countries stop their tourism sector also which may cause a drastic deplete in the money income of a countries because the country like India who earn or largest contribution in Indian G.D. P. by service sector faces a lots of problem. Various jobs are also cut down due to this Covid. The daily wages worker also feels scarcity of money and food. Govt. takes major steps for tackle the problem but it is very difficult with the country with second largest country to solve this problem very quickly. Everybody wants to remove from this pandemic even whole world try to find out the vaccine of this pandemic, but process is still going on. But life is not easy after these diseases, not easy to come back to whole world to come in same track as earlier.
LIFE AFTER COVID19
It will not be easy, it’s not easy to start all aviation sectors in one day, even all service sectors not easy to start. In addition, companies like manufacturing unit facing a lots of problem after covid, to be restart in the aspect to maintain safety and with the less export –import policy. Even govt. also looks up at once on its EXIM policies. Safety will still going on even after covid-19 like with public, A detailed planning activity, where we need to identify which employees really need to come to work, even after the lockdown or after this pandemic. And world gets a new digital way to work from home even the developing countries like India also give their presence or their enthusiastic in going a work though a digital medium. But it’s also true that many of people lose their jobs due to this.
Social distancing is still going on even after this removal of diseases; even companies also adopt such kind of measures. Companies also facing a problem of exchanging of good due to less transport activity , because it’s not possible to restart the all the transportation services very quickly , govt. should take better step in this scenario.
BUSINESS SCENARIO NOW AND AFTER COVID19:-
If we talk about GDP growth of Q1 of December 2019 then it goes down to 6-year low. Manufacturing sector takes a hit. Fiscal Deficit not in the hand of our Govt.
There is a three types of Economic curve occur due to covid19.
1. V- CURVE: - Which means Firms or business unit initially facing problems due to novel corona virus, but due to faster adoption of technology and new process achieve its Boom.
2. U-CURVE: - Firms or business unit initially start falling and face losses for some time but same they start achieving prosperity.
3. L-CURVE: - Firms or business unit initially start falling and continually facing a losses.
ØWinner Industries :-( in covid and after covid.) (V-curve
· E-commerce Market Places
· Entertainment, streaming and Gaming.
· Logistics and Delivery
· Video conferencing
· Non-cyclical Business (work on consumer essential goods).
· Pharmaceutical Business. ( Inelastic demand)
ØLoser Industries :-( in covid and after covid)
· Airlines
· Travel
· Cruise
· Investment Banker
· Economy and Share Market Tourism
· Oil and Gas
· Construction and many more.
ØIn Betweener Industries
· Banking
· Education
· Health care
· Manufacturing
Economy like India and its business unit can regain its energy or previous prosperity only with the maximum buying behavior of people, because we know that country with second largest economy start buying then it would definitely help the country to regain its economy back on the track.
Consumption comes from personal disposable Income i.e.
Personal income – personal Tax Liability = Personal Disposable Income
(Rs.1 lakh) (Rs. 20,000) (Rs. 80,000)
When this personal Disposable Income is increases then economy will also be increases .But due to this corona virus peoples start saving Instead of consume. So PDI will decreases now and even Future also which may affect the economy as a whole.
Due to less money, banks are also not able to give loan to corporate, then corporate try to take loan from NBFC. But due to Pandemic corporate may be they fail and not be able to pay the Interest or whole amount of this Non-Banking Financial Institution. Then NBFC. May also face losses in coming Future or Even now also.
Therefore, due to this pandemic Poor Balance sheets may also be created of NBFC AND BANK, CORPORATE AND MSME.
Govt. may also take some important step in corporate sector by cutting down the tax cut to Rs. 1.45 Lakh crore. However, in country like India where there is a less (2%) number of corporate sector is doing their business. Therefore, this step may not be too helpful for increasing the PDI of whole country. Income of Farmers, Public, Labour and villagers will not be boost up so due to this way people try to save more than expense, even upcoming future they continue to save more until reach to their stable position.
Suggestion: - Adopt technology, new process and move towards growth and success.