IMPACT OF COVID 19 ON INDUSTRIAL SECTOR IN INDIA

India’s GDP was decelerating even before COVID pandemic, from 8.3 % in 16-17 to 7.1%, 6.1, and 4.2% in the
next three years. India’s economy posted its steepest contraction on record in the April-June quarter of the 2020-21
fiscal year as the strict lockdown imposed to arrest the spread of COVID infection stalled economic activity, shut
out consumption and investment, and led to job and income losses. The government on 13th May 2020 announced
the stimulus package meant for extending a helping hand to MSMEs, NBFCs, DISCOMs and salary earners. The
aggregate amount involved in this package was Rs. 5.94 lakh crore. Data released by NSO showed GDP in April-
June of 2020-21 slumped 23.9 % compared with a growth of 3.1 % in the previous quarter (Jan-Mar). Tourism and
hospitality contribute approx. 9.2 % to the country’s GDP. The sector consists of a large workforce of approx. 42.7
million. With a lockdown being imposed for less than a month had resulted in the industry facing a loss of USD 22
billion (25 % shrank) and also not the forget leaving 50 million people being laid-off due to less demand for tourism,
being faced with the crisis globally. According to FAITH (Federation Association of Tourism and Hospitality) over
95% MSMEs of 53000 travel agents, 115000 tour operators, 53000 hospitality services and over 5 lakh restaurants
in India are facing the brunt of adequate cash flow in the sector since feb., 2020. Among major economies, India’s
contraction was the sharpest. After declining by 24.4% in the first quarter last year, the economy has registered
growth rates of -7.5%, 0.4%, 1.6%, and 20.1 % in subsequent quarters. This V shaped curve of recovery is testimony
to the strong fundamentals of the economy.