Shreyas Keskar Tuesday, 17 March 2020

Global Trade and the Pandemic

COVID-19 or coronavirus which symptoms were first seen in the Month of November 2019. Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

This virus was found in the Wuhan market in china. Till now 195 countries and territories around the world have reported a total of 4,14,179 confirmed cases of covid-19. Till now 18,440 deaths have been recorded.Markets have suffered losses unseen since the 2008 financial crisis.Governments and policymakers are slashing interest rates to try to stabilize economies suffering from the impact of quarantined consumers and disrupted supply chains.The world’s richest nations poured unprecedented aid into the global economy on Thursday as coronavirus cases ballooned in the new epicentre Europe, with the number of deaths in Italy outstripping those in mainland China, where the virus originated.

Global buyers are turning to India to source ceramics, homeware, fashion and lifestyle goods, textiles, engineering goods and furniture from the country as China grapples with the deadly coronavirus outbreak.In the past 10 days or so, Indian manufacturers and exporters of such goods have received an increasing number of enquiries — mostly from the US and the European Union — seeking to replace China as a supplier.

At the same time globally it is expected that there will be a loss of 50 Billion Dollar. It is estimated at 640 million dollar (48,57,92,00,000.00Indian Rupee) in India. In India Companies Act have also allowed companies to make CSR(Corporate Social Responsibility)by funding corona. For making masks, sanitiser. Government has ordered Alcohol companies to make more alcohol for making sanitizers.Airlines have been canceled for a few days. Only Cargo is allowed to fly. Medical equipment like ventilator, masks,sanitizer are allowed to be sent to the other countries if needed.

Some of the negatives impacts are: 1. Tremendous pressure to get trade receivables from corporate 2. Stoppage of production and business movements 3. Interest outstandings on business loans for SMEs, PSUs 4. Heightened Operational expenses 5. Businesses are stuck because large corporations are not buying from SMEs due to fear of Covid19 infection. 6. Outstanding Wages, income tax, GST etc payment. 7. Falling financial markets eroding value of companies 8. Exports stopped and fisheries and gems and jewellery businesses affected the most. 9. Ports, Aviation, tourism and hospitality terribly hit leading to financial and job loss. 10. Manpower shortage as Small wagers leaving jobs and returning to native lands

Many Religious places have been turned into Quarantine centres for keeping the people or testing. Indian Business Tycoons have also come forward with financial as well as equipment help. RIL has funded the state government , turned their hospital fully into a 100 bedded quarantine hospital. Also testing for the vaccines is allowed in the hospital. Production of masks and medical dresses is given more priority. Other production in various industries is stopped. Industries are used for producing more masks, medical equipment, sanitizer, ventilator. Indian Government has announced a fund of Rs. 1.7 crore for the poor people.