Business sectors that have been badly affected by the second wave of Covid-19

The second Covid-19 wave is already underway in India, as we all know. It has had a significant negative influence on people's lives and some of their livelihoods and financial situations. True, the 2nd wave of Covid-19 in India may not have the same economic effect as the first.

However, to slow the spread of the coronavirus, authorities have implemented measures including factory lockdowns and shutdowns across the country. It has an impact on India's economy in many key areas.

After the second wave has peaked, India's economy will improve quickly. Despite attempts to break the infectious chain, economic harm in some areas could greatly influence the moderate development prospects.

Small firms, such as merchants, wholesalers, and distributors, on the other hand, face a low risk of failure and are easily managed. The five hardest affected industries by the second Covid-19 wave are listed below:

1. The Hospitality Industry

As a result of various state legislatures strengthening localised lockdown restrictions, the hospitality industry faces a repetition in 2020. Restaurant, bed & breakfast, hostels, service complexes, taverns, bars, nightclubs, and other enterprises are all part of the hospitality industry.

Limitations, lockdowns, and checkpoints imposed by state governments have harmed the sector, accounting for a significant amount of India's overall GDP. The second wave's economic effect may force these businesses to close permanently.

However, we would propose that even in this difficult moment, some people may stay in business and earn money by conceding a few concessions, such as businesses starting food delivery and forming alliances with any online food or grocery delivery partner like Swiggy, FoodPanda, Zomato, and so on.

2. Transportation and Aviation

Throughout the first phase of an epidemic known as Covid-19, the aviation and other traveling sector businesses encountered severe tensions and economic hardships. Similarly, when limits are continually increased during this second phase of coronavirus, the scenario is steadily becoming more dangerous.

According to observations, there has been a 50% decline in air transport in the last few months. This says that consumers are scared to leave their houses because of heightened corona hybridisation, which is good for keeping individuals safe at home but bad for the big travel region.

While airlines had been steadily increasing their profit margins, the scenario has once again deteriorated due to the second lethal wave of Covid-19. As far as can be seen, aviation and travel industry revival will not be contingent on when the country reaches the height of its Covid-19. However, whether people will regain the courage to leave their houses and use such facilities will be determined.

The future of aviation and the travel industry as a whole does not look promising right now.

If we want to oppose Covid-19, we may reach over to our previous customers and ask them about their preparation, and we can arrange plans for them because we are in the travel industry. According to the report, even in this difficult time, individuals are travelling throughout the world and prefer to maintain a safe distance. This serves as rehabilitation for them because it is both a vacation spot and a place where they can work from home.

3. Sector Tourism

Do you realise how closely the hospitality sector is linked to the vital tourism industry? Following the first Covid-19 wave, the travel and tourism industry, which employs millions of Citizens, began to recover. They were unaware, however, that Covid-19 could reappear for the second round of carnage.

The tourist sector, which comprises hotels, places to stay, vacation houses, motels, and other lodging options, contributes around 7% of India's yearly GDP. However, due to the second wave of Covid penalties, the tourism industry has been profoundly rattled, with companies struggling to recover from early losses in 2020.

Due to their terrible financial situation, many small businesses may not continue operations soon once the second phase ends. But we'll fight back and make a strong return.

4. Automobile Manufacturing Industry

Covid-19 has had a significant impact on India's automobile business. The second phase of Coronavirus has put pressure on India's carmakers, causing sales to plummet. People haven't quit purchasing cars, on the other hand.

Only the second half of this year is projected to see the sector improve. Experts believe it will be determined by India's ability to handle the second wave quickly. Vehicle sales are heavily influenced by consumer mood in the automotive industry. However, in the current scenario, people do not desire to fill their houses, and the economic effect is also a significant factor to consider.

5. Sector of Real Estate and Construction

Real estate and building sector activities have been severely disrupted by the second phase of Covid-19, as massive groups of migrant workers have deserted urban regions. In metropolitan regions, labour shortages have hampered housing and building projects.

States, where the virus is quickly spreading, may suffer significant delays in finishing ongoing initiatives. Fearing coronavirus and work epidemics, around two lakhs migrant labourers from the Delhi-NCR region have returned to their homes. This figure is anticipated to rise further as more workers return to their homeland daily.

It is predicted that if this trend continues for another few months, the construction and real estate industries would be severely disrupted.

Aside from that, there's really hope and opportunity. We may hire local labourers for building, expect a little work and effort, and keep them interested just during the hours approved by the law while taking all necessary safety procedures. A single thought has the power to change the world.

The government could follow the appropriate steps to help small enterprises during the relief period and even in the long run:

• As small firms reopen, giving sector-specific assistance, such as assisting in the bulk provision of personal protective equipment to customer-facing enterprises.
• Collaborating with private finance organisations to expand credit access or generate new emergency subsidies, loans, and incentives to assist less financially resilient enterprises that are less financially resilient.
• Promoting structural changes that motivate financial companies to provide relatively long capital direct exposure and identify opportunities for small businesses to update their services and digitise; such policy changes could also enable company entrepreneurs’ capabilities as well as investment opportunities in training programs.

Bottom Line

If you're a small business worried about the coronavirus's spread and the impact it's having on your business as a result of the Indian government's closure. There’s no reason to be concerned about your company's future. Now you may easily run your own business from either the comfort of your own home, avoiding losses and a failing financial system.

You can also conduct business while sitting at home and avoiding coronavirus infection.

This is the ideal moment to boost your brand because people will have more opportunity to study about it. You can also give them your company cards with information about your products and services. It will undoubtedly have a good impact on your business following the shutdown.

Also Read:

1) How to Identify Gaps in the Market for Your Small Business?
2) How to Start a Furniture Export Business?
3) 8 Simple Steps To Pay Employees Of Small Business
4) How to do a Perfect Audit in your Business?

Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more!
Download OkCredit now & get rid of your bookkeeping hassles.
OkCredit is 100% Made in India.

FAQs

Q. What are some business owners at a higher risk?

Ans. Lower-income employees, minority entrepreneurs, and entrepreneurs with lower educational attainment are all at disproportionately high risk due to disparities in vulnerabilities across industries. The most disadvantaged sectors have the lowest average salary amongst these 4 categories, at about Rs 964475.85, or about a third less than the average median in the other four directions.

Q. How can the general public help tiny businesses?

Ans. They can assist you in the following manner:

• Whenever possible, shop there instead of bigger, more durable stores.
• Whenever possible, buy with larger corporations that have initiatives to assist its small-business customers and suppliers.