Covid-19 outbreak impact on Indian economy, infrastructure, GDP and various other sectors
Aerospace Industry
IATA (International Air Transport Association) has reported a loss of 1.4 % in goods carriage.
Links;
https://japantoday.com/category/features/travel/iata-this-is-aviation%E2%80%99s-darkest-hour
https://business.mb.com.ph/2020/04/06/passenger-demand-shrinks-41-in-asia-pacific-iata/
ACI ( Airport Council International ) has reported a total loss of 76 Arab $ which is equal to 76 billion $ to the whole Aerospace industry. Passenger number has been dropped by 38 % nearly 3.6 billion passengers. All fleets have been grounded wether domestic or international.
Avolon company of Ireland has cancelled order of 75 Boeing 737 Max Aeroplanes. Avolon company had got the target of supplying these aeroplanes till 2023. Moreover 4 Airbus A330 Neo Aeroplanes are also set to be cancelled. A total of 79 aircrafts has been cancelled and 25 have been delayed.
https://www.google.com/amp/s/simpleflying.com/avolon-boeing-737-max-cancellation/amp/
2 and 4 Wheelers
Bajaj the largest exporter of 2 wheelers in India has recorded a drop 38% in its sales for the month of March 2020. Domestic sales have dropped by 55%. The company had sold 3,93,351 units last year compared to 2,42,575 units this year.
Maruti sales drop by 47% to 83,792 units in March this year. The company had recorded sales of 1,58,076 units last year.
Hyundai sales drop by 47% to 32,279 units for the same month compared to 61,150 units last year.
https://auto.ndtv.com/news/car-sales-march-2020-hyundai-sales-drop-47-per-cent-amidst-lockdown-2204214
Covid-19 impact on Indian economy
The Moodies rating agency has downgraded the credit of Indian banks from neutral to negative owing to the coronavirus outbreak.”Prolonged financial stress among rural households, weak job creation, and, more recently, a credit crunch among non-bank financial institutions have increased the probability of a more entrenched slowdown. Moreover, the prospects of further reforms that would support business investment and growth at high levels, and significantly broaden the narrow tax base, have diminished,” the top credit rating agency said.
https://energy.economictimes.indiatimes.com/news/power/indias-economic-outlook-changed-to-negative-from-stable-moodys/71965365
Asian Development Bank (ADB) has predicted the rise of inflation this year 2020. ADB has said that first 6 months will be very challenging for the Indian economy. Inflation rate may reach upto 3.2%. The country is likely to be hit by global recession. The break of demand and supply chain for consumables i.e. Vegetables and fruits is the main reason at domestic level for the inflation.
https://www.thehindubusinessline.com/economy/covid-19-impact-adb-expects-indias-economic-growth-to-slow-down-to-4-per-cent-in-fy21/article31243955.ece
Gross Domestic Product (GDP) growth rate will come down to 2% according to Fitch rating agency. This is the lowest growth rate for the country in 30 years. India will recede back mainly due to global recession for financial year 2020-2021.
CARE Rating Agency has claimed that the Indian economy is losing 40,000 crore per day during 21 day lockdown.
World Economy
UN estimates that the whole world will suffer a loss of 10% of the World GDP. People away from their country are unable to send home the earning, which is a big deal. Most of the countries still rely on the income from foreign nations.
Smartphones and Gadgets
- 60% drop for April month
- 2 billion $ for industry
- 27% loss of shipments on YoY basis
Counterpoint Reasearch has said that smartphone market in India will go back to 2016. Smartphones will see a drop of 60% in its sales for April month.
https://www.thehindubusinessline.com/info-tech/indian-smartphone-industry-may-take-2-billion-hit-from-coronavirus-counterpoint-research/article31245399.ece
