Group 3 - Covid Impact

COVID-19 IMPACT ON DIFFERENT SECTORS
IN INDIA
INDEX:
1. EDUCATION SECTOR
2. HOSPITALITY SECTOR
3. PHARMA SECTOR
4. TELECOM SECTOR
5. TOURISM SECTOR
6. OIL AND GAS SECTOR
1. EDUCATION SECTOR : {Negative impact}
 Due to Covid-19, many changes came to our world and It took some time for everyone to adopt the new
normal. The Covid-19 impact was everywhere, which resulted in the closure of Schools and other
educational institutions. Initially, most governments have decided to temporarily close the schools to
reduce the impact of Covid-19.
 Some negative impact of COVID-19 on education are as follows :
(A) Educational activity hampered - Schools are closed and classes have been suspended. Different
boards have already postponed the annual examinations and entrance tests across India.
(B) Unpreparedness of teachers and students - Teachers and students are unprepared for online
education; they were not ready for this sudden transition from face to face learning to online learning.
(C) Digital gadgets - Especially in rural area many students have limited or no internet access and
many students may not be able to afford computer, laptop or supporting mobile phones in their homes, online
teaching-learning may create a digital divide among students. The lockdown has hit the poor students very
hard in India as most of them are unable to explore online learning according to various reports.
(D) Create Difference - This online teaching-learning method creates a big gap between rich vs poor and
urban vs rural students.
{Positive impact}
 Though there were many negative impacts from the COVID-19 outbreak on
the field of education, there was also a positive impact which could take the
education system and its methods a step higher. The pandemic has opened
gates to innovative methods of transmission of knowledge across the globe.
It was very challenging to India as many people live in areas without
internet, and others attend more poorly equipped government-run schools.
Many efforts were made to continue education at all levels with online
methods, but it could not be made available to everyone.
 COVID-19 accelerated the adoption of digital technologies to deliver
education. Education institutions moved toward blended learning and
encouraged teachers and students to acquire technology savvy. Soft
technology, online, webinars, virtual class rooms, teleconferencing, digital
exams and assessments became common phenomenon, where otherwise
we might have merely defined them — or they might have come into
practical use a decade later or more.
2. HOSPITALITY SECTOR
❑ The hospitality sector is facing a repeat of 2020 as

many states have strengthened localized lockdown
rules. The hospitality sector includes many businesses
like restaurants, bed and breakfasts, hostels, services
apartments, pubs, bars, nightclubs and more.
 The sector, which contributes a large portion of India’s

annual GDP, has been hit hard by the restrictions and
curfews imposed by states. Many of these businesses
have been brought to a standstill as they are merely
allowed to deliver food that qualifies as an essential
service.
[A] In places where restrictions are less severe, footfall has reduced sharply in view of the Covid-19
health crisis. People are scared to step out as India continues to report over three lakh new cases and
thousands of deaths every day.
[B] When Covid-19 cases were initially rising during the second wave, the hospitality industry in
Maharashtra -- the first state to announce strict restrictions — told the government that it is a death
knell for many businesses.
[C] However, almost all hospitality-related businesses in the country are now facing a similar
challenge. The economic impact of the second wave could be last longer than a quarter and most of
these businesses may have no choice but to shut shop permanently.
[D] The result will be a massive spike in unemployment, which has already seen a sharp spike in April.
3. PHARMACEUTICAL SECTOR
 India is the largest provider of generic drugs globally. Indian pharmaceutical

sector supplies over 50% of global demand for various vaccines, 40% of generic
demand in the US and 25% of all medicine in the UK. Globally, India ranks 3rd in
terms of pharmaceutical production by volume and 14th by value. The domestic
pharmaceutical industry includes a network of 3,000 drug companies and
~10,500 manufacturing units.
 The coronavirus pandemic and its resultant lockdown badly affected all major
sectors of the economy, but it has come as a boon in disguise to the Indian
pharmaceutical sector. Though some part of pharmaceutical business was
affected such as supply chain and import of active pharmaceutical ingredients
from China, Covid-19 has provided some opportunities in the pharmaceutical
sector, especially India.
 In generic market, India is facing high competition from China for the supply of
APIs at lower cost. India imports 70 per cent of the API needs from China. This
created a lot of hardship to some of the domestic pharmaceutical firms
manufacturing certain key APIs. India’s health security was under threat due to
heavy dependence on China coupled with shortage in supply of key APIs.
 Demand change, which leads to shortage, in the case of induced
demand and panic-buying of oral home-medications especially for
chronic disease may be due to the pandemic (COVID-19-related), and
also shortages due to supply-chain inconsistencies.
 Increased hospitalization, incidence of COVID-19-related pneumonia
and increased demand for assigning patients to ventilators,
contributes to related prescription medicine shortages.
 A medicine shortage is defined as a “supply issue that affects how
the pharmacy prepares or dispenses a drug product or influences
patient care when prescribers must use an alternative agent”
 The impact on medicine shortage was differed by medicine access
level, retail and hospital-only, and type. Use of medicines currently
being investigated in trials but not yet fully approved by FDA or so-
called investigational treatments—including hydroxychloroquine,
lopinavir+ritonavir, tocilizumab and sarilumab—had seen a two-fold
increase in use over the past month, with 8 times higher use in
hospitals
 This COVID-19 related shortage also affected the health market for
medical devices and personal protective equipment (PPE), which
includes protective goggles and visors, mouth-nose protection
equipment, and protective clothing and gloves, that made countries
to legislate regulations in this regards.
4. TELECOM
SECTOR
The COVID19 virus is one of the biggest
pandemics for the world, and to get out of
this government are taking essential steps
for there countries and states. But the
economy of the world is also at the worst
point of the situation. It has never been
before the economy has come at this
point. Due to COVID19, the trading and
manufacturing of the product are banned.
Those are the main reason for the
economy which has come at its worst
point. In this critical situation also some of
the sectors have helped the government
to keep its economy in a strong position.
The sectors like software companies and
the telecom industry have become a major
key role for the government.
This Photo by Unknown Author is licensed under CC BY-SA-NC
As demand is rising in the telecom industry, it is dependent
on the different sectors in the market. So the manufacturing
of the tools has been stopped in the red and containment
zone during the lockdown by the services. As per the
expert's reports, the supply of the manufacturing products
will be affected due to the restriction of the lockdown. As per
the ICEA( Indian cellular and economic association), the
manufacturing sector of the telecom industry will be having
the loss of ₹15000 crores due to restriction of lockdown.
Due to the restriction of the lockdown, there has been a

decrease in the buying of the new sim cards. The reports
have highlighted that there is an addition of 3 billion
subscribers before the lockdown. But after the lockdown,
the addition of the new subscribers will be decreased to 1
million. It has been seen the impact on the revenue in the
first session; these will show the effect in April and March.
5. TOURISM SECTORS
 Travel risk and management perception refer to the evaluation of a

situation concerning the risk to make travel decisions in destinations
 (1) Travelers risk and management perception is a key component for
tourism destinations. Risk management refers to the practice of
recognizing potential risks of the travel and tourism industry due to the
current pandemic in analyzing, improvement and taking preventive steps to
reduce the risk. Many countries of the world started to recover from the
crisis of tourism events
 (2) Tourists’ travel arrangement should be organized to minimize the risk
and stress of tourists. For example, tourists should purchase insurance
when they booked trips to destinations. Researchers stated that the travel
and tourism industry is vulnerable against risk including crises events,
epidemics, pandemics, and other risks that challenges tourists’ safety. The
previous studies indicated that risk restricts travel is negatively affect
tourism demand . Other authors found that perceived risk negatively
affects tourists’ destination perceptions.
(a) Tourism is one of the world’s major economic sectors. It is the third-largest export
category (after fuels and chemicals) and in 2019 accounted for 7% of global trade.
(b) For some countries, it can represent over 20% of their GDP and, overall, it is the third
largest export sector of the global economy.
(c) Tourism is one of the sectors most affected by the Covid-19 pandemic, impacting
economies, livelihoods, public services and opportunities on all continents. All parts of its
vast value-chain have been affected.
(d) Export revenues from tourism could fall by $910 billion to $1.2 trillion in 2020. This
will have a wider impact and could reduce global GDP by 1.5% to 2.8%.
(e) Tourism supports one in 10 jobs and provides livelihoods for many millions more in
both developing and developed economies.
(f) In some Small Island Developing States (SIDS), tourism has accounted for as much as
80% of exports, while it also represents important shares of national economies in both
developed and developing countries.
6. OIL & GAS SECTOR
The covid-19 pandemic has the adverse effect on the
lives of humans as well as the economy of the
country.
India’s overall petroleum demand in 2020 fell for the
first time in more than two decades as the covid-19
pandemic shuttered businesses and factories,
crimping the appetite of one of the world’s biggest
consumer.
Demand for total petroleum products including diesel,
fuel and jet fuel slid 10.8% from the earlier year.
Lower crude oil prices and consumptionhave
provided an opportunity to build strategic reserves.
Consumers were not benefited from lower crude oil
prices due to upward revision of indirect taxes onMS
and HSD by central and stare government .
Due to covid-19, multiple scenarios have evolved based on efficiency of health care
response and speed of government policy and support. In general, falling oil prices due to
oversupply and demand contraction has adversely affected the refining throughputs and
therefore GRM’s are under stress, this will have an impact on new/on-going capex
programme and financial standing of companies are likely to be under some stress.
The second wave of covid-19 has also impacted demand leading to a drop in refining
throughput and planned shutdown undertaken by HPCL, apart from marketing volumes
falling during the quarter.
In post covid-19 scenario, oil and gas players may consider the following in line with their
long terms goal and vision;-
Cost optimisation opportunities.
2)Contract renegotiations.
3)Revisit long-term strategy.

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COVID-19 IMPACT ON DIFFERENT SECTORS

❑ The hospitality sector is facing a repeat of 2020 as

 The sector, which contributes a large portion of India’s

 India is the largest provider of generic drugs globally. Indian pharmaceutical

Due to the restriction of the lockdown, there has been a

 Travel risk and management perception refer to the evaluation of a

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