Amity Law School

AMITY
UNIVERSITY HARYANA
AMITY LAW SCHOOL
ASSIGNMENT OF ENVIRONMENTAL STUDIES

SUBMITTED BY : Simran Dhaundiyal
PROGRAMME : BBA LLB (H)
BATCH : 2019-2024
ENROLL NO. : A50821519016
SUBMITTED TO : Ms. Akriti Verma
CORONAVIRUS: THE PANDEMIC WHICH SHOOK
THE GLOBAL ECONOMY
The novel coronavirus disease (COVID-19) has claimed over 1,800 lives
in China alone with more than 72,000 being infected across the world
ever since the deadly communicable disease broke out in China’s
Wuhan. The COVID-19 death toll has already surpassed that of the
SARS outbreak in 2002-03 and the World Health Organisation (WHO)
has declared it a global health emergency.
But first we need to find out what is COVID-19 ?
COVID-19
 Coronavirus or COVID-19 is a large family of viruses that causes

illness.
 It ranges from the common cold to more severe diseases like
Middle East Respiratory Syndrome (MERS-CoV) and Severe
Acute Respiratory Syndrome (SARS-CoV).The SARS-CoV-21 is
a coronavirus very similar to the one that caused SARS.
 The World Health Organisation has declared COVID-19 to be a
pandemic.
 The symptoms of COVID-19 appear within two to 14 days after
exposure and include fever, cough, a runny nose and difficulty in
breathing.
 As of 20 March 2020, the rate of deaths per number of diagnosed
cases is 4.1%; however, it ranges from 0.2% to 15% depending on
age and other health problems.
Effect of COVID-19 Outbreak on Indian Economy
The outbreak of coronavirus has triggered a gradual fall in the global
stock, commodity and money markets during the past few weeks.
Investors are concerned about the damage it will have on the businesses
and economy.
A recent report by the Financial Times, that quoted Deutsche Bank
forecast, said that because of coronavirus,
China’s economic growth is going to be 1.5 per cent lower in the first
quarter of 2020 compared to the same period in 2019, at 4.6 per cent.
The global economic growth during the period is expected to be slower
by 0.5 percentage points.
India’s total electronic imports account for 45% of China. For
automotive parts and fertilisers China’s share in India’s import is more
than 25%. Around 90% of certain mobile phones come from China to
India.
It has been seen that some sectors of India have been impacted by the
outbreak of coronavirus in China including shipping, pharmaceuticals,
automobiles, mobiles, electronics, textiles, etc. Also, supply chain may
affect some disruptions associates with industries and markets. Overall,
the impact of coronavirus in the industry is moderate.
In India, the prices of paracetamol, which is the most commonly used
analgesic, have surged 40 per cent, while the cost of azithromycin, an
antibiotic used for treating a variety of bacterial infections, has jumped
by 70 per cent, according to a Bloomberg report.
In terms of export, China is India’s 3rd largest export partner and
accounts for around 5% share. The impact may result in the following
sectors namely organic chemicals, plastics, fish products, cotton, ores,
etc.
According to CLSA report, pharma, chemicals, and electronics
businesses may face supply-chain issues and prices will go up by 10
percent. The report also says that India could also be a beneficiary of
positive flows since it appears to be the least-impacted market. Some
commodities like metals, upstream and downstream oil companies,
could witness the impact of lower global demand impacting commodity
prices.
Let us have a look at the sector-wise impact on Indian

industry
Chemical Industry: Some chemical plants have been shut down in
China.. It was found that 20% of the production has been impacted due
to the disruption in raw material supply. China is a major supplier of
Indigo that is required for denim. However, it is an opportunity. US and
EU will try and diversify their markets. Some of the business can be
diverted to India which can also be taken as an advantage.
Shipping Industry: Coronavirus outbreak has impacted the business of
cargo movement service providers. As per the sources, per day per
vessel has declined by more than 75-80% in dry bulk trade.
Auto Industry: Its impact on Indian companies will vary and depend
upon the extent of the business with China. However, current levels of
the inventory seem to be sufficient for the Indian industry. If the
shutdown in China continues then it is expected to result in an 8-10%
contraction of Indian auto manufacturing in 2020.
Pharmaceuticals Industry: India is one of the largest suppliers of
generic drugs across the world and has about 12 per cent of all
manufacturing sites catering to the US market. The pharmaceutical firms
rely on China for as much as 80 per cent of its active pharmaceutical
ingredient (API) requirement.
Textiles Industry: Due to coronavirus outbreak, several
garments/textile factories in China have halted operations that in turn
affecting the exports of fabric, yarn and other raw materials from India.
Solar Power Sector: Indian developers may face some shortfall of raw
materials needed in solar panels/cells and limited stocks from China.
Electronics Industry: The major supplier is China in electronics being a
final product or raw material used in the electronic industry. India’s
electronic industry may face supply disruptions, production, reduction
impact on product prices due to heavy dependence on electronics
component supply directly or indirectly and local manufacturing.
IT Industry: The New Year holidays in China has been extended due to
coronavirus outbreak that adversely impacted the revenue and growth of
Indian IT companies.
Tourism and Aviation: The COVID-19 outbreak has affected the
tourism industry most as people are afraid of coming in contact with
infected people. Mumbai is the most affected Indian airport The national
carrier Air India is estimated to suffer from losses worth 3,700 crore
over three months due to cancellation of flights .CAPA has predicted
that nearly 150 planes will be grounded initially by Indian carriers, and
numbers are likely to swell as more domestic operations are curtailed
over the coming weeks. Some airlines have asked their employees to
take pay cuts of 5-25 percent.
CAPA said , “In the absence of serious and meaningful government
intervention, such an outcome could lead to several Indian airlines
shutting down operations by May or June due to a lack of cash.”
Hence, after studying these facts we got to know that Indian Economy
has been affected deeply by COVID-19.
THANK YOU

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AMITY

ASSIGNMENT OF ENVIRONMENTAL STUDIES

 Coronavirus or COVID-19 is a large family of viruses that causes

Let us have a look at the sector-wise impact on Indian

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