Impact of Covid-19 on the Indian Economy

Impact of Covid-19 on the Indian Economy

India faces a huge decline in government revenues and growth of the income for at least two quarters as the coronavirus hits the economic activity of the country as a whole. A fall in investor sentiment impacts privatization plans, government, and industry. The economic impact of COVID-19 is very disturbing. No one has been spared of its ill effects. Economies of about 100 plus countries have been destroyed out of which some of them have asked for monetary help from IMF. Businesses across the world namely hospitality, entertainment, aviation, etc have seen a major negative impact. Various sports events such as IPL and the Olympics have been postponed. Schools and colleges have been closed. The virus has also disrupted the functioning of various online giants such as Amazon. Countries such as the USA, Italy, and Spain are suffering the most since their death toll is very high.

COVID-19

Impact on Economy:

There is a big shift in the world economic market and the share market has witnessed crashes day by day. Factories, Restaurants, Pubs, Markets, Flights, Super Markets, Malls, Universities, and Colleges, etc. were shut down. The fear of coronavirus has limited the movement of individuals. People were not even going to buy the daily essentials and these all were somewhere impacting the economy of the world as a whole. The Organization for Economic Co-operation and Development (OECD)reveals that they have cut their expectation for global growth to 2.4% from 2.9%, and warns that it could fall as low as 1.5%.

India faces a huge decline in government revenues and growth of the income for at least two quarters as the coronavirus hits the economic activity of the country as a whole. A fall in investor sentiment impacts privatization plans, government, and industry.

The lockdown in India will have a sizeable impact on the economy mainly on consumption which is the biggest component of GDP.

India’s total electronic imports are equal to 45% that of China. Around one-third of machinery and almost two-fifths of organic chemicals that India purchases come from China. For automotive parts and fertilizers, China’s share in India’s imports is more than 25%. Around 65 to 70% of active pharmaceutical ingredients and around 90% of certain mobile phones come from China to India.

India Bombay Stock Exchange market crisis red market price down chart fall / Stock analysis or forex charts graph Business and finance money crisis background red negative drop in sales economic fall

Disruption of supply chain and global trade

Covid-19 has disrupted global supply chains and this is generating spillover effects throughout different levels of supplier networks. Global trade in 2020 will fall in every region of the world and will affect all sectors of the economy. This will impact countries that are strong exporters (no output for their local companies), but also those that are importers (lack of raw materials). The World Trade Organization (WTO) expects global trade to fall up to 32% this year due to the coronavirus pandemic.

Conclusion

A global recession now seems inevitable. But how deep and long the downturn will depend on the success of measures taken to prevent the spread of COVID-19, the effects of government policies to alleviate liquidity problems in SMEs, and to support families under financial distress. It also depends upon how companies react and prepare for the re-start of economic activities. And, above all, it depends on how long the current lockdowns will last.
The country is facing an extraordinarily challenging time in this financial year. India has to urgently find a way to cushion the demand side shocks induced by potential lockdowns and other ongoing containment measures.

Developing countries like India have more fragile economic and social fabric and the present situation will create more suffering for the unorganized sectors and migrant labor. Borrowing the words of former RBI governor C Rangarajan “Government of India must provide lifelines to businesses – extend loans and tax waivers to small businesses and the self-employed to retain staff — give direct support to severely affected industries and provide more funds to states, tax waivers to households, etc.”

 

 

What are the Construction Trends of 2020?

What are the Construction Trends of 2020?

In the year 2020, a lot of changes have been noticed. Due to the pandemic of Covid-19 many changes have been noticed by the construction industry. Due to the pandemic, it caused a shift in project timelines and a drop in labor and employment.

The overall construction industry outlook for 2020 varies by country and region. 

Industrial technologies are evolving and in construction, there is no exception. But the most recent developments extend beyond building equipment alone.

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Modular and Prefabricated Construction

The popularity of modular and prefabricated construction projects. Modular construction companies are making there stand because of the significantly expedited rate at which they can build residential and commercial buildings.

Modular construction is a prefabricated approach to building repetitive structures, so office buildings, hotels, apartments, and other commercial buildings are great for modular and prefabricated buildings. 

Prefabricated and modular construction are rising trends because of the time, energy, and cost savings it provides. Modular construction saves companies a significant amount of time and money because units are built off-campus, meaning companies do not have to deal with usual barriers to construction such as weather or limited working hours. 

This helps cut back on waste and make the building process more sustainable, which is another rising trend in the industry. Modular construction is a huge rising trend because of the time, energy, and cost savings associated with it, and is sure to keep gaining popularity through 2020.

MODULAR CONSTRUCTION

Advantages of this Development:

Virtual Reality

These technologies are already making a huge impact on many industries around the world, and the construction industry is no exception. Buildings are becoming ever more complicated, and these technologies are helping architects and construction teams improve designs and detect design errors. To date, architects and design through interactive design and gesture interfacing. 2020 is set to see this technology’s influence on the industry expand even further.

Increased Safety Equipment

Another construction industry trend that will continue into 2020 is the improving standards and use of better safety equipment products. Safety is a cornerstone for LP, so we are excited to hear of this advancing trend industry-wide.

Revolution in the construction industry:

Artificial Intelligence

Artificial Intelligence is increasingly ensuring greater efficiency in construction. The result is a reduction in construction costs and increased safety, both in planning and on the construction site. As soon as a machine imitates human cognitive tasks, i.e. recognizes patterns, is able to solve problems independently, and can learn, it is called artificial intelligence. 

Important advantages of AI in the building industry: Artificial neutral networks help predict cost overruns. Furthermore, forecast models calculate realistic time constraints for project control. And with training materials available online, new know-how becomes available to employees in no time at all, and they can be trained quicker and more efficiently. Analysis and prioritization of the numerous risk factors are also supported. AI systems take on the role of intelligent assistance and handle the daily flood information. Solve the unsolved problems and form of information provided with.

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