Covid-19 or Corona Virus is a SARS (Severe Acute Respiratory Syndrome) disease which first occurred in Wuhan, China on 31 st December,2019. It is severely affecting the global economy and till now the death poll counted was above 1,60,000(as of 19 th April,2020) in which China and Italy were most severely affected Nations, now USA is also facing the brunt of it. Economists are terming this period of extreme downfall of economy due to corona virus outbreak as “The Great Lockdown”. India is taking all the measures to avoid the impact of corona virus and is on a lockdown from 24 th March – 14 th April which is again extended to 3 rd May.
Indian Economy which was initially facing a slowdown have a very intense impact as corona virus led to a severe downfall on imports from China and other nations as well. And so is for exports, As China is India’s third Largest export partner which accounts for almost 5% share. Some sectors of Indian arket have also been impacted by the outbreak of Coronavirus in China including shipping, pharmaceuticals, automobiles, mobiles, electronics, textiles, etc. as 72% of Indian Companies are located in the eastern part of China. Thus, the supply chain is shaken up impacting almost all the trade which is linked to China. And all the Indian Companies will be impacted by it. In a statement given by the United Nations they said that the whole economy will go in recession and India and China are amongst those countries who can avoid it. According to CLSA report, pharma, chemicals, and electronics businesses may face supply-chain issues and prices will go up by 10 percent. The report also says that India could also be a beneficiary of positive flows since it appears to be the least-impacted market. Some commodities like metals, upstream and downstream oil companies, could witness the impact of lower global demand impacting commodity prices.
In Conclusion, India will be the least impacted market but there is a negative impact on Indian as well as Global Economy.
