GUWAHATI: At the very fag end of the financial year 2019-20,the world was handed over a bloody blow by a small micro organism called Novel Coronavirus which gradually shattering the humanity and the global economy. The Myth that Human being is the Superior living organism is in danger and is waning. Till now 50 lakhs are infected and more than 3 lacks have already left this beautiful planet. This pandemic has affected the world economy which was confronting turbulences on account of various disturbances in trade even before the pandemic. The pandemic has aggravated the situation by impacting demand, supply and liquidity.
Sailen Baruah president and Kumud Ch. Medhi Secretary of NESSIA State Committee think the major sectors that affect state economy & employments are agriculture, MSME, Transportation, Aviation & tourism, Retail and consumer.
Food & Agriculture is the primary & most vital sector that affects entire mankind and the economy of the states. This Indian sector contributes around 16.5% of GVA & 43% 0f employment of the country . The market size of food 7 retail markets and food processing in India is around INR10 lakh Cr. To ease out various constrain during this lockdown such as high price variation of key raw materials, production shut down, cash flow difficulties, supply chain disruption, labour concern, the Govt may measure out few short term and long term policy changes in National E-Commerce, Net safety, dedicated food transport corridors pan India, smooth supply chain of food across the country without any border restrictions, ensuring optimum farm gate prices for domestic commodities, supply of agri inputs free of cost for the upcoming Kharif season etc.
Another important sector with a share of 10% GDP and 42 million people engaged and which is directly affected is the Aviation and tourism sector. With all outbound and inbound travel suspended, according to IATO this sector is estimated to incur a loss of around INR 850 Cr and a potential job loss of around 30 million(70% of total work force). Govt may immediately think of GST holidays, waiver of taxes and duties for next 1 year, no classification of NPA, healthcare and insurance incentives, provide capital support.
Finally we foresee many new ways the business landscape is likely to evolve post COVID-19.More shift towards localization is imminent. Digital working is going to bloom. Also forced the companies to understand the importance of financial prudence and conservation of Cash. Another shift on the card is the more resilient supply chain system for companies and government alike. To avoid destruction due to such unexpected happening the policy makers have to transform themselves to be more responsive, inclusive ,agile and adaptive. Let us be optimistic and hope to bounce back again. Let us take these challenges as new opportunities.