How Coronavirus will impact Indian and global economy.

As Coronavirus spreads it also affects global economy and many sectors globally. The most affected sectors are machinery, automotive, aviation, tourism, hospitality, pharmaceutical and oil. The most affected economies are European Union (usd 15.6 billion), the United States (usd 5.8 billion), Japan (usd 5.2 billion), South Korea (usd 3.8 billion) and so on. India is the 15th most affected.

India actually already has lost $348 million because of trade impact but it is less when compared to other countries. All the negative effects of Coronavirus on the whole world are that global economy goes down . Sectors like aviation slows down because people know that planes are very unhygienic so they are not travelling in planes and everyone also know that going to any other country can increase their chances of getting Coronavirus, so when they don’t travel and don’t want to visit countries as tourists, hospitality sector gets effected as people stop booking hotels and rooms and that affects many countries whose economy is based on tourism. Another factor is China manufacturing production has come down that is why many products are less available.

There are many positive factors too like when aviation has slowed down so oil is not getting consumed hence oil prices go down, which reduces inflation and prices. Another factor is that pharmaceutical companies are going to get a boost because when people get sick they will rush to hospitals because they are scared and they will make more use of medicines and when Coronavirus cases increase more medical facilities get used and that is how it boosts. There is one very good factor for India, as China has stoped manufacturing so companies will look for another cheap manufacturing countries like India, Bangladesh and Srilanka but India will be benefitted the most and this will make India’s economy grow.As India is a domestic consumption based economy reducing oil price will effect India economy in a positive way. This just a temporary shock and India will recover