He raised his head again when the whole world was breathing a sigh of relief that the corona virus was wreaking havoc. In the form of blood seeds, cases started coming up one after another in different countries of the world. News first came from nearby countries like China, South Korea, Hong Kong, Singapore, Japan, then from Iran and Italy to Canada and America, this dangerous virus. And in the last four-six days, cases started coming from different cities of India.
Assess the situation with the fact that the primary schools in the capital Delhi have been declared a holiday. For the entire month of March. It is still easy to leave in schools, but what will offices, factories, hospitals, hotels, restaurants, metros, bus stations, markets, all do? This has the effect that people are now shying away from air travel. Lufthansa has grounded more than one hundred and fifty aircraft. In India, Air India, IndiGo and SpiceJet have canceled their flights to China and Hong Kong. Vistara was about to embark on a longer route with a flight to Tokyo, which is now probably on hold.
The decline in foreign travel is clearly visible. Nearly half of the people going from India to countries like Thailand, Malaysia have had their tickets and hotel bookings canceled. With the news of the virus in Italy, about twenty percent of the tickets there have also been reported to be canceled. The Government of India itself has issued an advisory that the journey of so many countries is not safe at this time. Coming and going, not only meeting, import-export and business is also becoming increasingly difficult. Mobile World Congress, the biggest fair of the mobile phone business, has been canceled due to fear of this virus. The same happened with the game developer conference. On the other hand, Google has canceled its two big events Cloud Next Event and Developers Conference 2020 and has now limited it to video conferencing. Chinese mobile company Xiaomi has also said that at the moment it will not do any launch event.
Many technology companies have instructed their employees to work from home i.e. home from this fear. These include HCL Technologies and TCS. Wipro and Cognizant have stopped the tour and Cognizant has closed down its office in Hyderabad for some time. Similar news is coming from Twitter offices around the world. Amazon and Flipkart have done the same. Mahindra Group chairman Anand Mahindra says that this crisis can change the whole way of working. He wrote in a tweet that this crisis will pass, but it seems that it can reset the world forever. First, it will accelerate the practice of working from home. Second, most conferences will begin to be virtual and digital. Third, now meetings will be less and video calls will be more. And fourth, there will be less air travel, which will also improve the environment.
This optimism will help improve the environment at the moment, it is difficult to say. See sample, the effect of a decrease in demand for hotels. Hotel business giant Oyo is going to leave five thousand people worldwide. And where the disease will spread now, it is difficult to say. However, those who make and sell things like masks and sanitizers have been battered. Chemists are saying that thousands of people are buying sanitizers and masks. Demand for vitamin C and paracetamol is also seeing a sharp jump. It is in this context that investment is also being advised in companies making them, that is, a few pharma and chemical companies and mask making companies. There is also a lot of bounce in their prices, despite the poor market.
But the condition of the rest of the businesses is in good shape. The fear in air travel is also in getting out of the house. So businesses ranging from hotels, restaurants to cinema halls, malls and shops in old markets are either cold or afraid of happening any day. As soon as one employee in two companies in Hyderabad and Gurgaon was confirmed suspicious of corona virus, there was apprehension. Now it is not possible to leave here like school, but you cannot take the risk.
The worst condition is that of companies running large factories. There should be work going on and there should be no transition for the workers, this is a big challenge. The challenge has increased as the import of parts coming from China has come to a standstill. This situation is not only in India but in the whole world. People are not coming anywhere, meaning they are not even buying anything. That is, not only production, demand is also getting a big blow. It is not yet clear how long the outbreak will reduce or stop. The World Bank estimates that even if the disease subsides soon, it will still affect at least half of the world’s GDP. But if it does not stop, then this decline can be up to five percent, that is, about three trillion dollars setback.
Right now the insurance claims of this disease have not started coming properly and there is a screw. The Insurance Regulatory and Development Authority has asked insurance companies to settle claims related to the corona virus as quickly as possible. On the other hand, many companies have stopped offering health insurance policy for travel abroad. Especially in the countries whose government has asked to avoid traveling, companies are not giving policy on tickets to go there. It is difficult to add a clear account of how much damage it will cause in India. But the question of how Holi will be played in this environment is worrying. And if the mood of Holi is disturbed, then it is also going to affect the economy.