STOCK MARKET BSE NSE

Coronavirus impact: Here's a look at the most affected sectors 

While the intensity of the impact differs from sector to sector, there are few sectors that have been hit the most and might continue to suffer until life turns back to normal.

Published: 01st January 2021 05:19 PM  |   Last Updated: 01st January 2021 05:19 PM   |  A+A-

covid_vaccine

For representational purpose. (File | AP)

Online Desk

Talking of the year 2020, one could not think of anything beyond coronavirus. "The year 2020 is going to be as fancy as the number is! It might be unforgettable and I'm looking forward to it," this is exactly what I told my friend on December 31, 2019. Alas, 2020 was a year filled with fear for life, loss of loved ones, loss of jobs, financial instability, to say the least!

The damages caused by the deadly coronavirus has taken everyone's life for a toss and has affected several businesses beyond repair. While the intensity of the impact differs from sector to sector, there are few sectors that have been hit the most and might continue to suffer until life turns back to normal.

AVIATION

"My daughter is living in Boston, US and I was supposed to be with her for a period of 6 months as she was going to deliver her baby on December.

After nearly two-thirds of the world went into lockdown to contain the spread of the virus, the aviation sector was affected the most.

Coronavirus outbreak has caused excessive damage to aviation sector, threatening the survival and sustainability of airlines around the globe as most of the countries cancelled domestic and international flights on account of lockdown. 

"The impact is likely to be severe and prolonged for select sectors, especially aviation, hospitality, retail and allied businesses," ratings agency ICRA said.

As Civil Aviation Hardeep Singh Puri was hoping the Air travel rates to bounce back to pre-COVID levels by the end of December or by the beginning of 2021, the outbreak of new coronavirus variant  had poured cold water on aviation hopes.

In the case of the lockdown is extended, the sector will have a serious liquidity crisis which will raise questions on their survival. 

TOURISM

"My husband and I had planned a month long trip to Europe, but this pandemic has ruined our plans," said Usha Nandhini Selvarajan, a resident of Mylapore.  

COVID-19 outbreak has presented unprecedented circumstances before the fragile tourism and hospitality industry. Several countries are majorly dependent on tourists to drive their economy. It's one of the most labour-intensive industries in the world and over 100 million jobs are at risk right now. 

The travel bans, border closures, events cancellations, quarantine requirements and fear of spread, have placed extreme challenges on tourism and hospitality sectors.

The tourism sector is one of the largest industries and accounts for 6.23 per cent of the country''s gross domestic product (GDP) and provides employment to 8.78 per cent of the population.

It managed to generate around 275.5 billion dollars in revenue in fiscal 2018 with an annual growth rate at 9.4 per cent.

The tourism sector experienced a crippling effect with the nationwide lockdown announced in late March coinciding with the peak tourism season kickstarting from early April onwards.

Guides, tour operators, vehicle drivers, hotels, restaurants, shops and other facilities related directly or indirectly to tourism have taken a hit owing to the spread of the virus.

AUTOMOBILE

The pandemic has hit the automobile sector like never before. "The pandemic has deepened woes of automobile dealers as the coronavirus pandemic crippling most economic and commercial activities will negatively impact demand for automobiles," said India Ratings and Research.

The automotive industry suffered Rs 2,300 loss crore per day and an estimated job loss in the sector was about 3.45 lakh, according to a parliamentary panel report submitted to Rajya Sabha Chairman M Venkaiah Naidu on Tuesday.

"The committee was informed by the auto industry associations that all the major original equipment manufacturers (OEM) have cut down their production by 18-20 per cent due to low demand and decline in sales of vehicles. As a result, the employment scenario in the automobile sector has been affected and an estimated job loss in the auto sector at 3.45 lakh," the panel said in its report.

REAL ESTATE

2020 has been a 'lake lusture real year' for estate due to the aftereffects of the COVID-19 pandemic, however, the last couple of quarters were better.

Driven by low-interest rates, lucrative payment plans, attractive prices, residential sales across the country increased by 34 percent in the September quarter, compared to the June quarter, amid the raging virus, a JLL report had said.

“Covid-19 crisis has brought a change in the way consumers think. They are reverting to the Indian way of thinking —save some for a crisis so as not to get caught off guard. Demand has not decreased and those investing in properties are now adopting a more cautious approach. With the increasing trend of nuclear families, the demand for housing is expected to increase manifolds in the coming years,” said KSC Bose, general secretary, Confederation of Real Estate Developers’ Associations of India (CREDAI), AP Chapter.

According to a recent survey, the infra boom in India is expected to continue till 2030, and not just in the housing, but even in other aspects of infrastructure as well. Bose was of the opinion that more and more young people are preferring to own a house as soon as they are settled in their professions. “They view a house as not just an investment, but also a security for their later years.” 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

edexworks
flipboard facebook twitter whatsapp