India: The Impact of the New Pandemic Culture in the Global Financial Market
Covid-19 Background of the Country
The early months of this year, 2020, has given mankind a really hard time. It is a year
to be written in the books of globe history. This year is when volcanoes erupted, a country’s
forest came burning which killed much animals and destroyed much properties; and one
phenomenon that affected the whole globe hugely in its economic aspect is the virus that
resulted to annihilation and made humans stay inside their houses.
This virus is known as the Coronavirus disease or COVID-19. It is an infectious disease
that originated from the city of Wuhan, China. The outbreak of this virus began in December
2019 which lead to deaths and people quarantining themselves just to avoid being infected by
the virus.
The transmission of the virus comes from direct contact with respiratory droplets of an
infected person which could be generated through coughing and sneezing; and touching
surfaces contaminated with the virus. It may survive on surfaces for several hours, but simple
disinfectants can kill it (Unicef India, 2020). The virus shows signs of runny nose, cough and/or
sore throat, high temperature, feeling tired and difficulty in breathing. It is also said to be
exponentially growing according to a news article brought by Peter Lynch (2020).
This exponential growth means that one person is enough to start an epidemic. One
infected person could transmit the virus to 59,000 people if the social distancing is to be ignored
according to Dr. Hugh Montgomery, professor of intensive care medicine at University College
London (2020).
Countries affected decided to maintain social distancing for it is the only way to not
transmit the virus given its highly contagious feature. This social distancing could effectively
be implemented by locking down cities. This lockdown indicated that people should stay inside
their houses and avoid being with someone closer than a six feet distance.
Due to these factors, companies closed their production. Working became hard for
people that made others to suspend their working days. Even schools are cancelled because of
the virus. The virus has now impacted 200 countries and territories across the globe and India
is just one of the most affected countries.
India reported the first documented case of coronavirus infection in the state of Kerala
on 30th of January 2020. The affected person had a Wuhan, China travel history. From this first
case, India had reached 72 cases of the virus. Knowing how much population India has, this
news implied threat. As India responded to the said virus case, they opted to ban all nonessential travelers from entering the country enforcing it starting 13th of March and hopefully
until 15th of April (Adam Withnall, 2020). Banning 1.3 billion people from going out of their
homes was also a step taken by the government. Their prime minister, Narendra Modi, notified
residents to actualize the country’s 21-day lockdown starting 25th of March leaving the
country’s capital, New Delhi, seeming like a deserted racetrack.
All stores in the center of town were shut but challenged neighborhoods seem to have
people jostling around and panicking to hoard necessities. It is really challenging to maintain
social distancing looking how India is known to be one of the countries to have the highest rate
of density population. Houses and buildings were built so close to each other to the point it is
even hard to catch a glimpse of the sky.
To cure the lack of food and necessities sources, the government decreed to let food
shops, banks, gas stations and some other essential services to be exempt from the lockdown.
Also the ministry warned that anyone who refused to follow the restrictions faced up to a year
in jail. The government admitted it to be a difficult time for everyone having different factors
(Gettleman, Jeffrey; Schultz, Kai, 2020).
By these commotions, the 21-day lockdown from March extended up to 30th of June
(PIB Delhi, 2020). Until now that the world has no cure for the disease, the country is battling
the impacts of the virus dispersion and is currently facing about 207,191 cases; 5,829 deaths;
and 100,285 recoveries.
I. Financial Market vis-a-vis Economic Aspect
a. Threats
Attributable to the lockdown of the whole country, the economy may slow over the
next few months. These slowdown could manifest in supply disruptions for most
businesses, falling demand for consumption, and stressing the banking and financial
sectors.
According to an online article titled “India's economic growth dips during
coronavirus pandemic” posted by the The Associated Press, India’s economy grew by
4.2% in the March fiscal year, down from 6.1% the previous year. Now that the world
is facing pandemic, this shuttle up of the economy may standstill or worse, experience a
downfall.
The main supplier every businesses have would be China. And this may drastically
affect productions all around the world including India. When supply chains in China
are disrupted that means supply chains around the world are disrupted (Giridharadas &
Desai, 2020).
Products that are said to be not necessarily needed to face this pandemic are still held
closed. Falling demand for consumption of products such as gadgets, vehicles, fashion
clothes and construction materials is unavoidable. Unemployment rate rose from 6.7%
to 26% within just a month (Vyas & Mahesh, 2020). During the lockdown, 140 million
people in estimation lost employment while others had their salaries cut off including
various business such as hotels and airlines that also affected the economy in terms of
tourism (Goyal & Malini, 2020). This then resulted to more than 45% of households
across the nation claiming their income has dropped in comparison to previous year. The
first 21-day lockdown had the country expecting to lose over $4.5 billion per day and
53% of businesses were projected to be significantly affected. Informal sectors and daily
wage groups have been at risk (Das & Goutam, 2020) and a large number of farmers
faced uncertainty even though they are growing necessities (Chaudhry & Siraj A, 2020).
According to India’s Largest Independent Newswire, funding for businesses that are
just about to start are also put on hold. The investors find it hard to invest their money
during such pandemic. Most countries in the world are experiencing economic downfall
and the uncertainty of it going back to the way it was holds the investors back.
The government also finds it hard to fund the needs of the country for they cannot
collect taxes amidst the pandemic (Chauhan & Ashish, 2020). The bank reserve of India
finds it really challenging and said the this is the country’s greatest emergency (Ghosh,
2020) while the former Chief Economic Advisor to the Government of India said that
the country should prepare for a negative growth rate according to The Indian Express.
b. Opportunities
Amidst the pandemic, one must not just look at the limitations but must also
look at the opportunities. This crisis is really a challenge but may bring growth. A good
businessman won’t get stopped by the virus and will see that this means adopting new
strategies that can make the businesses and economy stable no matter how volatile the
market is. A wise entrepreneur and strategist won’t get swayed by emotions but will
stay patient to make sound decisions instead (Menickella, 2020).
India is said to be almost at par with China when it comes to industry and
economy. They are known to be the two emerging giants in economical aspect (Merrill,
et. al, 2010). Knowing that China is the main supplier of most businesses (Giridharadas
& Desai, 2020), and India is almost at par with China, India may take action to be the
next main supplier of most businesses. It is an opportunity for the said country to move
forward as China hit its lowest point given the pandemic originated from there. It will
be the best time for import substitution given also that they emerge in making medicines
and other pharmaceutical products.
One strength that India has is that they are much capable to handle all kinds of
country due to their skillful English speaking workforce. It won’t be hard for them to
communicate with future investors and future business partners (Vij, 2020).
In case of growing economy locally, online selling may benefit best. It is the
best way to still reach consumers despite the social distancing and work from home
rules. This gives more opportunities for telecommunication companies and online
stores (Krishna, 2020).
c. Proposed Innovative Ways
A way to achieve a strategy that can be applied to a volatile environment would
be doing both sides—physical and online working. As the world faces technological
advancements, the country must cater this factor. The government may provide a strong
and fast connection to the internet. This will not just boost their efficiency but will also
help the communication and advertisement of their country.
Knowing how India faces the pandemic well, they have this strength of building
a more resilient and diverse economy after pandemic (Press Trust of India, 2020). It
would be easy for them to get future investors.
India is also known to have the quality driven approach and conform to high
costing. The country could also cope up well in last minute changes and alterations of
products (Vij, 2020). It may be time for them to maximize also the quantity of products
and reduce costing. Reduction of costs may be necessary at the time having lack of
funds.
Due to these reasons, it’s best for them to advertise better their country for the
meantime. It is being patient while gathering needed resources for future build ups.
In line with this, the country must secure their products—whether it be
perishables, agricultural, pharmaceuticals and technological materials. To be able to do
that, workers that are able to secure such must be given more attention and benefits.
Farm populations must be secured by testing and practicing social distancing. As the
country aims to enter the supply chain, this step would strengthen them.
The bottom line is to focus on pushing the strengths and secure the weaknesses.
II. Financial Market vis-a-vis Socio-Cultural
a. Threats
The entire country had to be shut as the pandemic overwhelms the entire world.
Countries had no choice but to impose the social distancing which affected everyone
socially and culturally (Javadekar & Vaidya-Kannur, 2020).
Given that India has lots of festivals, it is a huge challenge for the country to
uphold celebrations as the country faces social distancing, self-isolation and travel
restrictions (Mufsin & Muhsin, 2020). It also affects financial market in a way that
tourists who care to witness such festivals cannot make their way to attend. Festivals
where small stalls of street foods can make their income has now been stricken as an
option. Even sources of food for such gatherings are difficult to reach. On top of that,
mass gatherings cannot also be held for any form of assembly could trigger the
dispersion of the virus (Javadekar & Vaidya-Kannur, 2020).
Moreover, in terms of socialization, people tend to be inclined with using social
media. The pandemic has given much free time to residents as it canceled schools and
jobs and has now resulted for people to use much of their mobile phones and other
gadgets. As people get active and bored at home there is health misinformation
circulating rapidly across various social media platforms (Mufsin & Muhsin, 2020).
These misconceptions and misinformation are mainly because of the country’s
culturally rooted beliefs. Religious sectors also increase the dissemination of such
misinformation. Different suggestions such as cow urine could be used as protection
against the virus are spreading throughout the country (Mufsib & Muhsin, 2020). These
home remedies and dubious advisories weaken the need for real pharmaceuticals as
those who read the information will tend to follow and believe for they would rather
use what’s cheaper and more accessible. And it is now not doubtful that online scams
sprawl amidst the pandemic (Mehta, 2020).
The easy widespread of information also came to be a reason for a person to
conceal their symptoms. With so much social stigma in line with the disease,
concealment threatens much human lives (Mishra, 2020). Excessive fear causes
different mental illnesses to arise and result self- harm or worse, suicide (Sahoo, 2020).
Furthermore, not only inside homes are found as threat to human lives but also
outside. Despite the pandemic, theft and arson cases never seem to cease (Press Trust
of India, 2020). The lack of resources and livelihood lead people do such crimes
(Thaver, 2020).
b. Opportunities
According to Vineet Nayar (2020), the mind of an Indian is far more capable of
handling unexpected challenges. Back then, Indians tend to persevere in achieving their
goals. But now that technology and different lifestyle emerged, children nowadays do
not seem to be just like the past generations. Parents nowadays would very much likely
to provide all the needs of their children, leaving the kids no chance of figuring things
on their own. The cancelation of classes and social isolation during this pandemic could
be much of help to let students experience experimenting and trying different learning
methods on their own (Nayar, 2020).
One more opportunity to look at is the usage of technology. Now that residents
of the country are inclined with using different platforms on the internet, advertisements
and information passing never have to be so hard. If the bad effects are to be overlooked,
one can see that internet platforms are really powerful in influencing and informing vast
audience (Hall & Li, 2020).
In term of financial markets, the pandemic brings opportunities for future
investors as inflation is nowhere to take an action. While having this low point of the
economy, all the country has is recession and deflation (Jain, 2020).
c. Proposed Innovative Ways
Cancelation of classes may be one problem to pull the country down as the
future leaders of the country became stagnant in their learning. One way to make them
continue their studies is to impose online classes or broadcasted classes in television
and radio. This will also sill provide educators their jobs which could furnish them their
needs.
Authorities may also hire technology experts that could turn down posts on
social media that spurts out hoaxes and dubious advices.
Doctors and other therapists may also be encouraged to post positive contents
that may help lessen the fear of medical isolation. This could also bring lightness to the
feelings of residents to also reduce arising mental illnesses. And true professionals may
negate the wrong advices being posted online ensuring that people will not resort to
following such.
The government must make sure that they also disseminate Covid-19
information in rural areas as well for them to not have false information and for them
to have grasp of real concept rather than assumptions.
It is also best for the government to provide basic necessities to their
countrymen to diminish cases of theft and other crimes. With lacking of funds to
accomplish such steps, they may issue a fund raising to give a hand to those in need.
People with means may donate through online banking and give a hand to those
who can’t afford foods and other basic necessities.
III. Financial Market vis-a-vis Politico-Legal
a.
Threats
The most known law that was enacted by almost all of the counties affected by
the Covid-19 pandemic, is the lockdown. This is due to the goal of controlling the
spread of the virus.
Political leaders have no choice but to stop productions and other daily routines
that a community does. But due to the uncertainty of having the cure for the virus, it is
also not clear when the lockdown will be lifted. The government puts an end date but
then extends again as for the number Covid-19 cases is not flattening. This then results
to uncertainty also in the business industry (Nalapat, 2020).
Also, due to the high density population of India, residents feared having martial
law (Gettleman, Jeffrey; Schultz, Kai, 2020).
This lockdown also posed a greater threat to women of the country as cases of
domestic abuse and household work burden are being put on their shoulders. Being
isolated from everyone will make it more difficult for them to be heard and to escape
(Deshpande, 2020).
b.
Opportunities
Having pandemic which means occurring in a large geographic area and
affecting large population, countries may have each other as allies and fight for the
virus hand in hand.
Times of sufferings like this indicates truce for countries even just temporary.
This virus outbreak can be an opportunity to restructure normal economy if citizens
globally engage and mobilize for the common good (Mathai, 2020).
Broadening of trading between each countries can also shuttle up if only
political leaders could make their way into pursuing partnerships with other countries
(Bartlett, 2020).
It is also an opportunity for political leaders to prove themselves to their
jurisdiction.
c.
Proposed Innovative Ways
Political leaders must secure an ally as the burden of pandemic strikes through
the globe. This is to strengthen sources and secure capitalization.
The lockdown must still continue and must be stricter until the curve flattens.
As it gets stricter, the government must also secure the needs of their people.
Authorities must also put their focus on challenged areas and ensure that no
women is being abused and battered. The bottom line is to focus more on the country’s
people and not to overlook things that must be looked at more.
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