Corona havoc for these 4 sectors, The outbreak of Corona has indeed proved to be havoc for many sectors of the industry. Private consumption, investment, and foreign trade, which have a major contribution to GDP from Corona, have been badly hit. Due to this, there is a possibility of losing jobs in crores. Let us know which sector has suffered the most due to the havoc of Corona? And how can their future be?
Corona havoc for these 4 sectors:
The aviation sector has suffered the most from Corona. There is a lockdown in many countries of the world because of Corona. Flights to India are also completely closed. Salary cuts and layoffs have started in this sector. Thousands of jobs are expected in this sector in India itself. Informed people are even warning that if the lockdown is prolonged, there may be a delay in the shutdown of many airlines. According to global business advisory firm KPMG, for aviation, it is a bigger crisis than the recession of 2008-09.
Hospitality (Hotel & Restaurant)
The havoc of Corona is also overshadowing the hospitality sector like hotels and restaurants. Hotels and restaurants have also been closed due to flights being closed, transportation and travel completely halted. After the lockdown opens, domestic transport can get some business in this sector, but it may take several months for international tourists to come. Even at the domestic level, people will hesitate to visit restaurants or crowded places for months ahead. In such a situation, there is a possibility of large scale layoffs in this sector too.
Due to Corona, there is a possibility of heavy losses to the micro, small and medium enterprises (MSMEs) sector. That is why the demand to provide relief package to this sector has started increasing. The government may soon announce a relief package for this sector.
Manish Khemka, Co-Chairman of the Ph.D. Chamber (UP Chapter) says, “The biggest problem facing the government is unemployment. A large number of people will be unemployed. Therefore it is very important to support MSMEs who are very big sources of employment. MSME needs immediate relief at this time and the government should not delay it. If medicine is needed now, then the government should help. State governments are also waiting for the Centre’s step in this matter. Nothing less than cash assistance is going to work for MSMEs. Many countries have extended cash assistance to their industries, from Canada, America to Bangladesh in Asia.
He said that the Bangladesh government has given facilities like loans to the employees at a nominal interest of 2 percent so that they can run their expenses in case of a salary crisis. In India too, such a scheme like a loan or salary assistance can be started for MSME employees.
According to a report by the All India Manufacturers Association (AIMA), around 7.5 crore MSME units could be shut down if the lockdown lasted long and there was no help from the government. This sector had just recovered from the shock of demonetization that a new crisis came in front of it. This sector contributes about 30 to 35 percent of GDP and employs more than 11 crore people. Their business is at a standstill and due to lack of much capital, dependence on exports at times, it is difficult to give them a salary for their employees. In such a situation, repaying the loans, filling the GST is like an additional burden for them.
Tourism is also the first and most hurtful sector of Corona. Even if the lockdown opens in the countries of the world, people will want to stay away from the tour and non-essential travel for months or at least a year. In such a situation, there is a serious crisis on the livelihood of millions of people associated with this sector. KPMG report says that about 38 million jobs can be added in India, including both the tourism and hospitality sectors.
Industry chamber CII says that the total loss to branded hotels, tour operators, travel agency, etc. is about 1.58 lakh crore rupees. Similarly, online travel agencies may lose 25,000 crores and adventure tour operators about 19,000 crores. To support this sector, the government can take measures like giving soft loans, working capital, postponement of loans.
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