COVID - 19 will change the way of living just like the 1918 Influenza pandemic and as well as the way of working of our society just like the 1930 Great depression. This pandemic has severely affected the economical and financial health of salaried and professional individuals. For the next 12 - 14 months, the business and economic functions will be difficult. Many businesses will struggle. Some businesses will get shutdown. Some businesses will be merged into other business firms. Many businesses will get deprived due to lack of working capital and funding from the investors. But according to economic adversities, many new industries and business firms will emerge and will recover our society to a normal state.
The dreadfully affected sectors are the automobile sector which will continue to face challenges on the increase in supply, lack of demand, recession. The aviation sector has also been affected because for a year, it will function only for the essential travel rather than for a leisure trip. About India, this pandemic is expected to potentially impact more than 25 Lakhs jobs in our country’s aviation sector. The passenger traffic has declined by 47%. The passenger revenue has been fallen down over ₹ 85000 crores in this year compared to 2019. As aviation sector gets affected the leisure trips, the tourism and the hospitality sectors will also be adversely affected. Real estate businesses will face challenges like lack of sales, high-interest payments. According to Statista survey, real estate business, Tourism and hospitality sectors, and automobile manufacturing sectors were dropped down to -17.3%, -9.7%, and -6.3% respectively in terms of growth rate.
The sectors like pharmaceutical firms will have growth for the next decade. Chemical industries will be boom due to increased demand for sanitizers, disinfectants, drugs, and other medicines. As per the report, drugs especially respiratory therapy drugs witnessed the highest sales across India in March 2020 compared to February 2020, recording the growth of 23%, followed by anti-infectives with a growth of 10.2%. Medical devices industry in India has been growing 15.2 percent annually and is expected to reach US$ 8.16 billion by 2020 and US$ 25 billion by 2025. Affordable medicines under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) achieved a record sales turnover of Rs 52 crore (US$ 7.38 million) in the month of April 2020. Our government has also planned to set up nearly ₹ 1 Lakh crores to encourage the companies to manufacture the ingredients of the pharmaceutical drugs domestically in 2023.
Online education, online skill development, online groceries, and online-based product and service will replace the traditional functioning system. Though it has advantages like anywhere, anytime can learn, purchase and work, But it also has some pessimistic impacts like many product and services based companies, and businesses will work only with limited staff, cut off their salaries for the working staff, layoff many employees from their firms. Many educational institutions will layoff much less experienced and young teaching professionals because for the online education and skill training system, it does not require much more teaching faculties for teaching a course. Due to an online-based functioning system, many companies and business firms will reduce to invest over the immense and magnificent infrastructures which grievously affect the building and construction firms.
The digital and social media will reach their highest peak. As of today, most of the people stopped to buy a newspaper and started reading news from social media pages, news app, and E-Newspaper. The sad part is, the paper industries and printing presses will get deprived of their businesses and have to find their way to coexist with the digital medium.
Subscribers for online streaming platforms like Amazon Prime, Netflix, Hotstar, Youtube will be augmented. Whereas, the spectators for the television, cinema theatres, auditoriums will decrease. During this COVID-19 lockdown period, Amazon Prime witnessed the growth of 67% in subscription followed by Netflix with 65% growth in the subscription, Disney owned Hotstar saw a 41% rise in a subscription while Google’s free video platform youtube saw a 46% rise in the subscription according to Pan India study conducted by Velocity MR. As many switches to watching web series from the online streaming platforms, the cine production companies will start to produce many web series at a very lower cost and budgets and short films which will dwindle the fame of film industries.
The usage of digital payment apps like Google pay, Phonepe, Paytm, BHIM UPI has been increased during this lockdown in our nation. According to Statista survey, over 9% of people were switched to use digital payments rather than cash. Over 33% were using more digital payments, fewer cash payments. So we might witness minimalistic the cash transactions in the near future.
To conclude, in the near future, the Data will be as precious as gold which will become even more valuable. So, Data and IT security will become more essential for businesses whereas traditional industries will find it difficult to survive without access to data and information. Many businesses will experience an increase in productivity due to reduced staff. Remote work will see an augmentation. The burden of transportation will ease and they will be less traffic and pollution.
Ajay Viggnesh U