What’s the impact of the lockdown on India? Rather, to put it upfront or bluntly- how big could possibly be the impact of the lockdown on India? This indeed, is a question that impacts all of us in a certain way. Nonetheless, those who are immediately in the line of fire- in front of jobs and businesses; and therefore, responsible for commitments and work-schedules can feel the heat in the truest possible sense.
That said, make no mistake. To be home and practice isolation is one thing and the right thing to do. But the real impact of the Coronavirus lockdown on one can only be felt when things are back to normal, depending on what your definition of normal is.
The next immediate course of action, therefore, is to get set for pay cuts. Not the best thing to experience any which way. Isn’t it?
In that regard, what can be expected in terms of the impact of the lockdown on India’s business scene? What industries are going to suffer the most, which areas are in for a blip? Moreover, and above anything, what can be expected in terms of the period concerning the post-lockdown phase where an impact on the economic scenario can be gauged?
The India-division of the famous digital publication The Quartz had shared some telling highlights, and surely they don’t point to a very rosy picture.
In fact, it’s anything but that:
As much as 61% startups and small & medium enterprises (SMEs) in the country are staring at the possibility of scaling down their business in the next six months. Only 13% are expecting their business to grow, according to a survey conducted between April 18 and 23 by LocalCircles, a community-led social media engagement platform.
Now, that said, let’s establish a fact. As it is, the business framework around the world has taken a serious hit in lines with the imposition of the lockdown, and the fact that, this is going to continue until May 3, 2020 in India only goes to state that whatever active manufacturing or trading is to happen in India shall be delayed by a few more days, until further notice.
That being said, for a nation like India, that was, in the pre-lockdown period, only beginning to grapple with the sordid realisation that there was anyways a sense of recession settling in, the lockdown and hence, complete suspension of all economic or business activity has only worsened the sense of woes.
What can the future hold?
Meanwhile, Money Control had the following to say in the matter of another onerous problem for the country: the rising rate of unemployment.
Unemployment is the leading indicator of future income. After two months of lockdown, China reported an urban unemployment rate of 6.2 percent in February (up from 5.3 percent in January). This figure is the highest reported in 20 years. Even this high number is likely an underestimation.
Well, tough times these, right? One can only hope for things to get better in the coming days but until then, makes sense to note- time is the only healer.