88%(8)7 out of 8 people found this document helpful
This preview shows page 1 - 5 out of 54 pages.
IMPACT OF COVID-19 ON INDIAN INDUSTRY – ISSUES AND SUGGESTIONS1 Contents Section A – Overview: Impact of Covid-19 on Indian Industry 3 Key Findings of FICCI’s Industry Survey to Assess Impact of Coronavirus 5 Section B – Policy Interventions Required by RBI and Government 6 Industry Suggestions for RBI 6 Industry Suggestions for Government 7 Section C – Exemptions form and Extensions for Select Statutory Compliances 13 Immediate Tax Measures to be announced by the Government 13 Other relaxations required for smooth functioning of the businesses 13 Section D – Sectoral Impact and Suggestions 15 Agriculture & Food Processing 15 Agro-chemicals 15 Automobiles 16 Aviation 16 Cab Aggregators 17 Capital Markets 17 Chemicals and Petrochemicals 18 Consumer Durables and Electronics 19 Defence 20 E-commerce 20 Education and Skills 21 Financial Services & Fintech 25 Healthcare 26 Health Insurance 27 IT and ITeS Services 27 Livestock 27 Media & Entertainment 28 Medical Devices 29 MSME 30 Pharmaceuticals 30 Power 31 Private Security Services 32
IMPACT OF COVID-19 ON INDIAN INDUSTRY – ISSUES AND SUGGESTIONS2 Publishing 32 Real Estate & Construction 33 Renewable Energy 34 Retail 34 Sports 35 Textiles 36 Tourism, Hospitality & Medical Value Travel 37Transport & Logistics 37 Section E – Sectors / establishments to be kept out of purview of ‘Curfew’ 39 Section F – COVID-19 Mitigation Measures Taken by Indian Companies 40 Section G – Economic Measures taken by Select Countries 42 Section H – Annexures 51 Annexure 1 - List of APIs with high dependence on China 51 Annexure 2 - Cost difference for API manufacturing in India and in China 52
IMPACT OF COVID-19 ON INDIAN INDUSTRY – ISSUES AND SUGGESTIONS3 Section A – Overview: Impact of Covid-19 on Indian Industry The Indian economy has been experiencing significant slowdown over the past few quarters. In the third quarter of the current fiscal, the economy grew at a six-year low rate of 4.7%. Investment and consumption demand had been languishing and a number of stimulus measures have been taken to bring back the economy on a growth path. There was a strong hope of recovery in the last quarter of the current fiscal. However, the new coronavirus epidemic has made the recovery extremely difficult in the near to medium term. The outbreak has presented fresh challenges for the Indian economy now, causing severe disruptive impact on both demand and supply side elements which has the potential to derail India’s growth story. Demand Side Impact- Tourism, Hospitality and Aviation are among the worst affected sectors that are facing the maximum brunt of the present crisis. Closing of cinema theatres and declining footfall in shopping complexes has affected the retail sector by impacting consumption of both essential and discretionary items. Consumption is also getting impacted due to job losses and decline in income levels of people particularly the daily wage earners due to slowing activity in several sectors including retail, construction, entertainment, etc. With widespread fear and panic now increasing among people, overall