1st May 2020: The COVID-19 pandemic has disrupted the Indian businesses sector. According to Crediwatch, the pandemic’s impact on different sectors and classified them into three categories. i.e. high, medium and low-impact. Automobile, Tourism & Aviation, Real Estate, Manufacturing (Capital Goods), MSME, and Metals and Mining (Steel / Iron ore) fall under the first category. Financial Institutions (Banks & NBFCs), Agrochemical, Transport & Logistics, Textile & Apparel, Petrochemical, and Metal & Mining (Coal) are categorized as Medium-impact sectors. Finally, Telecom, Agriculture, Logistics & Warehousing, Power generation, IT, Manufacturing (FMCG) were declared as the least impacted sectors.
Crediwatch, being one of the leading Techfin companies in India, has done a recent analysis on the sector and according to the findings, listed entities would incur a fixed cost expense worth Rs 4,72,000 crores for a lockdown of 45 days, and this number rises to Rs 12,88,000 crores if the nationwide lockdown is imposed for 120 days. In terms of GDP growth, Crediwatch projects that India’s GDP may grow in FY 20-21 at a rate of 1.55% to 1.83% if the lockdown is lifted on 3rd May. However, if the lockdown persists until May-end, the economy will experience a normal recovery quartering FY 20-21 at 0.9% to 1.02%.
Furthermore, according to Crediwatch India has seen a 55% drop in new company registrations since Jan 2020, 2% drop in employee count for BSE 100 entities, ~312% drop in new projects announcements between Feb and Mar ’20, and ~5% drop in Electricity consumption during the same period
Aimed at assessing the impact and analysing the risks of COVID-19 on Indian businesses, Crediwatch also conducted a webinar this week in association with CII to present the impact of COVID-19 crisis on Indian businesses.
With this at the backdrop, I propose an interaction with Ms. Meghna Suryakumar, Co-Founder & CEO, Crediwatch to talk about –
· How organizations can prepare for the post-COVID-19 future and gain competitiveness while dealing with borrowers, investors and supply chain partners
· How the pandemic will pave the way for large-scale digitalization across the Indian business landscape
· How will the loan disbursements be impacted post the lockdown
· Further inputs on the data shared above
