Understanding COVID-19 Impact on Indian Economy and Industry
by Keshav Jeet, on Jun 1, 2020 4:05:06 PM
We’re into the second phase of the pandemic and let’s face it, the Indian economy has been hit hard! Indices, employment, import & export, and GDP have undergone a detrimental impact. The GDP growth is pegged at -0.9% to 1.5% for the year 2021, which is lowest in the past decade. Here's how different industries are coping with the crisis.
Though the IT and IT services industry in India seems to be mildly affected by the pandemic, the recovery graph is still anticipated to be slow for them. On the other hand, petrol, machinery, automobiles, consumer electronics, air travel, and chemical industries have been severely impacted and will experience a slower recovery.
With most offices now shut down, remote working has been gaining a lot of traction. Video conferencing app Zoom observed a record hit of 62M downloads. The digital collaboration tools like JIRA, Cisco Webex, Slack, Skype, etc. are also being leveraged to their full potential. Thanks to all the mobile and cloud-based digital solutions, most of the tech companies are enabling enterprises across industries to continue their day-to-day operations and mitigating the impact of the epidemic. Let’s look at these Industries one by one:
The essential goods, health & wellness, and staples are among the top-selling commodities in these trying times. Having said that, Big basket’s 900% spike in orders during the lockdown period shouldn’t be a surprise. With the uncertainties hovering around the duration of the lockdown, panic buying is here to stay. Reposynergy is another start-up with a groundbreaking idea of doorstep diesel delivery.
Digital has also been fueling the entertainment industry as giants like BookMyShow are redefining their offerings with alternative services like online ‘live from HQ’ series to keep their customers hooked. House Party, the social networking app for video chatting and online group parties has also observed a 50M spike in users in the past month.
Telemedicine has been a panacea for doctors and patients alike during the COVID-19 as doctors can attend and provide care for patients online. Downloads for health and fitness apps and online consultation platforms are soaring during the lockdown, with apps like healthify me, MedPlus, Netmeds, DocsApp, 1mg Labs being on the top of the list.
The government has been leveraging COVID-19 digital solutions to continue its normal operations where feasible. It is leveraging video conferencing to interact with the delegates and CMs on discussions around COVID-19 and to enact necessary economic measures. The Arogya Setu App is another groundbreaking initiative by the government to detect the number of COVID-19 cases in an area.
Each Industry has its own story to tell in terms of the COVID-19 impact. While some industries have experienced sluggish growth, others have come to a grinding halt and some others have experienced an unprecedented spike in their business. Hence, each industry needs to implement tailored measures that can help them proactively manage the impact of the pandemic. With digitization taking over, it is recommended to get in touch with some experienced IT consultants to lay down a strategy of mitigation and find ways to ensure business continuity through the tough times.