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IMPACT of COVID-19

The document discusses the impact of COVID-19 on commerce and key sectors in India. It notes severe negative effects on domestic and global trade, manufacturing, MSMEs, services, and imports/exports. MSMEs, which employ over 100 million people and contribute significantly to GDP and exports, have been hit especially hard with lack of production and cash flow issues. The government is supporting sectors through food security programs, manufacturing stimulus, and MSME relief packages. Moving forward will require managing costs, utilizing aid, and boosting local and international trade as economies recover.

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Sunny Singh
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74 views34 pages

IMPACT of COVID-19

The document discusses the impact of COVID-19 on commerce and key sectors in India. It notes severe negative effects on domestic and global trade, manufacturing, MSMEs, services, and imports/exports. MSMEs, which employ over 100 million people and contribute significantly to GDP and exports, have been hit especially hard with lack of production and cash flow issues. The government is supporting sectors through food security programs, manufacturing stimulus, and MSME relief packages. Moving forward will require managing costs, utilizing aid, and boosting local and international trade as economies recover.

Uploaded by

Sunny Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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IMPACT of COVID-19

on
COMMERCE
By Manpreet Singh
14/05/2020
Trade and Commerce
• Imports
• Exports
• Domestic trade
– Manufacturing
– Wholesale / distribution
– Retail
– Service Industries
Effect of COVID-19 on Sectors
Domestic Trade Impact
Global Trade Impact
Immediate Impact on India
Financial Impact on sectors
Effect on Imports / Exports
Loss / Opportunity??
Effect on Exports
Effect on Imports
Traditional Consumption pattern
What people are doing….
Spending pattern
Food Security
• The country is now planning for the next crop
season i.e., kharif
• Availability of labor for agriculture and agro
processing units
• DBT to farmers and registered labor
• self-reliance and even self-sufficiency in food
• APMC and MANDI sanitization and SOP
Manufacturing
• Supply chain of raw materials and finished
goods
• Automation
• Transportation /warehousing and marketing
support
• Fresh WC & TL limits
• Rationalization of GST rates
• Conserve: A little goes a long way
Services

• Services are dependent on other industries


• Maximum employment generation
• Directly affects Electronics, hardware and
software industries, commercial real estate
• Work from home
IT Sector
MSME
• The Micro, Small and Medium Enterprises (MSMEs) are literally the backbone of all
Indian sectors and often engaged in manufacturing and export activities — two
key drivers of the Indian economy.

• Today, almost all MSMEs are out of action due to the lockdown, chocking all
production activities at major firms across sectors. There are several reports that
indicate how MSMEs are reeling under crisis and have no money to pay their
employees, complete pending orders or pay their suppliers.

• The MSME sector, which contributes to over 30 per cent of India’s GDP and from
leaders to experts and industry bodies, everyone has appealed the government to
increase its relief package.
Use DATA
MSME Statistics

• Number of SMEs in India: The number is estimated to be at 42.50 million,


registered & unregistered together. A staggering 95% of the total
industrial units in the country.

• SME & Employment opportunity: Employs about 106 million, 40% of


India’s workforce. Next only to the agricultural sector.

• Products: produces more than 6000 products.


MSME Statistics

• GDP Contribution: Currently around 6.11% of the manufacturing GDP and


24.63% of Service sector GDP.

• SME Output: 45% of the total Indian manufacturing output.

• SME Exports: 40% of the total exports.

• Bank Lending: Accounts for 16% of bank lending.

• Fixed Assets: Current fixed assets at INR 1,471,912.94 crore.

• SME Growth Rate: Has maintained an average growth rate of over 10%.
How Govt. is supporting
Setbacks
Restart problems
What NEXT !!
• Food security
• Pump up Manufacturing
• Supporting existing industries in addition to
benefits for new ones.
• Direct benefit to PAN card holders that are
liked to AADHAR and Bank accounts.
• Buy LOCAL, Support your first circle
• Renegotiate your deals
Key points for Trade

• Managing Cash flows


• Managing HR
• Utilize Government schemes for assistance
• Being a good leader
International trade BOOST
FTA and other New Markets
Recovery curve
Self Help is best Help
Way forward for Trade
Looking to the FUTURE
Contacts

• Mobile:     +91 9821026996


• Email:         president@icib.org.in
• Website:    www.icib.org.in
• Twitter:      https://twitter.com/chamber_indian
• Facebook: https://www.facebook.com/icib.mumbai
• Facebook: https://www.facebook.com/icibindia

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