According to a report by Genius Consultants, India is set to lose around 130 million jobs in the midst of the Covid-19 crisis. In which 40 percent would be from the blue-collar domain.
Major job losses, according to the report will be in sectors like aviation, automobile, travel and tourism, food, entertainment, and to some extent in the manufacturing segment.
R P Yadav, Chairman, and MD of Genius Consultants said, “The situation is still uncertain. Some COVID-19-servicing industries like healthcare, pharmaceuticals, e-commerce, IT services, essential retail continued to do good business during this difficult period. So, there will be an incremental rise in the jobs in these industries,”
Shortage of working capital has been another area of concern for the industry, feel experts. Although the government has given certain tax benefits and EMI, or loan benefits the interest rate will be around 9%. he said.
“The business is moving at a slower pace after the withdrawal of lockdown. Companies are facing several problems like shortage of demand, lack of working capital as well as labourers. Most of the industries will witness negative growth in revenue and profit. I do not see India GDP this year growing more than 1.0%to 1.5%,” he said.
Replying to queries about the sectors which may find some breather during Unlock 1.0, Yadav said: “The hospitality industry which mainly includes hotels and restaurants, along with malls can hope to revive their businesses after a long bearing off loss during the lockdown. Jewellery and retail industries, hotels, and restaurants would benefit the most and expect a recovery.”
In India, the Corona positive cases have surpassed over 3 lakh and more than 9,000 people have lost their lives during the pandemic due to the COVID-19 virus. Maharashtra followed by Tamil Nadu, Delhi, Gujarat and Uttar Pradesh are the states with the highest number of Covid-19 cases.
Source- Economic Times
