Economic Effects of Corona

Hospitality, Aviation, Cinema Hall, Tour and Travel industry have been severely affected by corona virus. There have been salary cut in these industries. Many people have lost a lot of money in share market .

There is a danger to jobs of around 2.5 crore people all over the world. Indigo Airlines has started salary cut . Hospitality sector is suffering a lot. It is estimated that 12 lakh people can lose their jobs in hospitality sector. There has been 50 percent decrease in the earnings of restaurant sector. Around 15 percent people working in restaurant sector have lost their jobs. 70 percent of the expenses of restaurant sector are fixed expenses. Fixed expenses are those that are incurred even when there is no sale. It is estimated that most of the airlines will go in liquidation till may without the help of government.

Government of India has constituted a task force under the leadership of finance minister for prompt economic action on the effects of corona virus. Finch rating, Moodies and S&P has reduced the GDP estimate of India. It is estimated that GDP will reduce by 0.5 to 1 percent. It is predicted that there will be loss of 800 crore to Bollywood.

RBI has predicted that second round of corona will slowdown the economy. It is estimated that 35 percent jobs will be lost in real estate industry due to corona. Cab industry will be severely affected by corona. There is 50 percent reduction in revenue of this industry. Cab drivers will face difficulty in repaying their loan instalment. The effect of corona is visible on food delivery business. There has been 20 percent reduction in earnings of delivery partners. There is loss of jobs in E -commerce.

Vedant kabra.

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