COVID-19: Over 1 Lakh jobs at risk, costs India Rs 9 lakh crore? Read it all here
Coronavirus outbreak has pushed all sectors into a stagnation affecting India’s economic growth. PM Narendra Modi has announced a pan-India lockdown for three weeks which could lead to losses estimated at $ 120 billion or about Rs 9 lakh crore, according to financial analysts. Consumer, retail and services sectors too could shed around one lakh jobs. The most severely hit sectors are aviation, travel, hospitality, retail, manufacturing and automotive sectors. The aviation industry has already rung it’s warning bells with reports sprouting up about IndiGo announcing pay cuts for its employees. Many other airlines too may adopt pay cuts or worse, trim its workforce.
” There is a severe impact on the travel and tourism sector in India. Many hotels both luxury and budget are running at just 10 percent of occupancy levels as thousands of people have canceled their trips. Also, the automotive segment which is already bleeding will also face the brunt of the job losses. Many of their plants are closed, resulting in thousands of job losses in the coming months” said Kris Lakshmikanth the Founder and CEO of the executive search firm Head Hunters India Limited.
The automotive industry could incur a revenue loss of over Rs 2,300 crore per day, according to auto industry body SIAM. A three-week shut down of the automotive industry will result in a revenue loss of Rs 48,300 crore. A single day of a complete shutdown of goods and services affects around Rs 50,000 crore of real GDP and a 10-day shut down would amount to Rs 5 lakh crore or 3.4 percent of GDP. The equity markets were also down to red at 0.47 percent on Wednesday. Indian investors too had lost Rs 52 lakh crore in just 3 months. According to the Bloomberg Billionaires Index, India’s top 14 billionaires have lost nearly Rs 4 lakh crore. Mukesh Ambani has also been out of the top 20 list of world’s richest people. Benchmark indices have dropped 37 percent in just 44 sessions, i.e, 40 percent of India’s annual GDP wiped out in just 44 days.
Manual & daily wage laborers have been stranded with no work, farmers no longer tend fields, online retailers and pharmacists have been facing issues with local authorities despite central authorities granting permission to supply essential commodities. Countless Indians have been running out of cash. “The kind of devastation that is going to be faced by the bottom 50 percent of the workers in the informal sector is unimaginable,” said Jayati Ghosh, an economist, and professor at the Jawaharlal Nehru University in New Delhi. The National Restaurant Association of India also reported an estimate of 20 percent of the 7.3 million restaurant workers who will probably lose their jobs as restaurants go out of business. Anurag Katriar, the chief executive and the owner of a chain of upscale eateries said: ” “Many companies may not survive this onslaught.” Indian Railways, on the other hand, may incur a loss of ₹1390 crore in the next 10 days, according to a top railway ministry official.
The corona onslaught has already begun not just in affecting the personal lives of people but also triggering an economical breakdown. Our only hope is to contain the viral outbreak and not push the already battered economy into an ICU. So, India, stay home, stay safe.