Scribd Logo
Upload

Welcome to Scribd!

  • 30 views

    Macroeconomics CIA 1

    Uploaded by

    Mathew Kanichay
    The retail sector in India accounts for over 10% of GDP and employs around 450 million people. The coronavirus pandemic has severely impacted the retail industry. Non-essential retail segments like jewelry, fashion, and electronics have been hit hardest by lockdowns and reduced consumer demand and spending. Retail sales dropped 20-25% by late February. Consumer confidence indexes also fell below 100, indicating pessimism about the current economic situation and future prospects. The retail industry has lost an estimated Rs. 15.5 lakh crore since the late March lockdown. Unemployment increased from 6.7% to 26% and an estimated 14 crore people lost jobs, though some new opportunities were created in areas like local hand san

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Macroeconomics CIA 1

    Uploaded by

    Mathew Kanichay
    30 views5 pages
    The retail sector in India accounts for over 10% of GDP and employs around 450 million people. The coronavirus pandemic has severely impacted the retail industry. Non-essential retail segments like jewelry, fashion, and electronics have been hit hardest by lockdowns and reduced consumer demand and spending. Retail sales dropped 20-25% by late February. Consumer confidence indexes also fell below 100, indicating pessimism about the current economic situation and future prospects. The retail industry has lost an estimated Rs. 15.5 lakh crore since the late March lockdown. Unemployment increased from 6.7% to 26% and an estimated 14 crore people lost jobs, though some new opportunities were created in areas like local hand san

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The retail sector in India accounts for over 10% of GDP and employs around 450 million people. The coronavirus pandemic has severely impacted the retail industry. Non-essential retail segments like jewelry, fashion, and electronics have been hit hardest by lockdowns and reduced consumer demand and spending. Retail sales dropped 20-25% by late February. Consumer confidence indexes also fell below 100, indicating pessimism about the current economic situation and future prospects. The retail industry has lost an estimated Rs. 15.5 lakh crore since the late March lockdown. Unemployment increased from 6.7% to 26% and an estimated 14 crore people lost jobs, though some new opportunities were created in areas like local hand san

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views5 pages

    Macroeconomics CIA 1

    Uploaded by

    Mathew Kanichay
    The retail sector in India accounts for over 10% of GDP and employs around 450 million people. The coronavirus pandemic has severely impacted the retail industry. Non-essential retail segments like jewelry, fashion, and electronics have been hit hardest by lockdowns and reduced consumer demand and spending. Retail sales dropped 20-25% by late February. Consumer confidence indexes also fell below 100, indicating pessimism about the current economic situation and future prospects. The retail industry has lost an estimated Rs. 15.5 lakh crore since the late March lockdown. Unemployment increased from 6.7% to 26% and an estimated 14 crore people lost jobs, though some new opportunities were created in areas like local hand san

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 5

    MACRO ECONOMICS

    CIA – I

    SECTOR: RETAIL

    SUBMITTED BY:

    • Mathew Kanichay 1923175


    • Rahul Agrawal 1923134
    • Gagan Jalan 1923116
    • Anukul Mandhania 1923107
    • Aditya Arav Singh 1923103
    • Ishan Dokania 1923177
    INTRODUCTION

    Indian retail industry has more than 70 million retailers, small scale and large scale. Indian retail
    industry was one of the most dynamic, fast-paced growing industries in the world, due to the
    entry of several new players. India is the fifth largest and preferred retail destination globally.
    The retail sector includes groceries, jewelry shops, fashion, electronics, home improvement
    etc. The per capita retail store availability is one of the highest in the word.
    Due to the recent coronavirus outbreak, have made malls and other stores to close and the
    demand for non-essential goods to drop as consumers would want to avoid crowds, this is
    making retailers very anxious about their near-term sales especially in malls.

    The retail industry accounts for over 10 per cent of the country’s gross domestic product (GDP)
    and around eight per cent of the employment which is around 450 million people. The Indian
    retail trading has received Foreign Direct Investment (FDI) equity inflow totaling US$ 2.12
    billion during April 2000–March 2020

    IMPACT OF COVID 19 ON THE RETAIL MARKET

    The impact of the coronavirus pandemic and the lockdown has indeed affected the financial
    markets. The non-essential retail sector (jewelry, fashion, electronics, home improvement etc.)
    is most likely to be most affected by this crisis. The essential goods like groceries and other FMGC
    products are not very likely to be affected much by the lockdown regulations. According to a report
    by Retailers Association of India, the business had dropped by 20-25% by end of February itself
    when the coronavirus alarm broke out in India. The Consumer Price Index-based inflation stood
    at 5.91 percent in March compared with 6.58 percent in February. Retail inflation continued to
    ease in March on lower food prices, the drop was led by continued easing in vegetable prices
    and fuel prices and a fall in demand for non-essential items amid a nationwide lockdown to
    combat the coronavirus pandemic. Clothing and footwear inflation stood at 2.11 percent in
    March compared with 2.05 percent in February.

    .
    IMPACT ON GDP

    One of India's most worthwhile resources is its enormous consumer base. Indian retail market
    sector is of Rs. 448.851 lakh crore. The share of private consumption stands at 58% of the
    country’s GDP. Of this 58% share of private consumption in India’s GDP, 48% is contributed
    by merchandise retail and 52% is contributed by services.

    Now in the current situation of the country lockdown, the data from the Reserve Bank of India
    showed consumer confidence collapsed in the month in the month of April. The current index of
    the situation of the consumer confidence and the future expectations index were both under 100,
    indicating that consumers were pessimistic. A reading above 100 represents optimism. People are
    appeared to be less optimistic about their current situation and future expectations.

    CONSUMER CONFIDENCE ON CONSUMPTION

    In the current situation of lockdown, India’s retail sector has racked up a whopping Rs. 15.5
    lakh crore in misfortunes since the time the lockdown was forced on March 24, driving
    numerous organizations to down shades as the coronavirus-prompted lockdown unleashed ruin
    on the business. As indicated by the Confederation of All India Traders (CAIT), which
    represents around seven crore dealers and around 40,000 trade associations, in the event at least
    20 percent or 1.4 crore more retailers are probably going to wrap up their organizations in the
    following months if there is any sort of help from the administration. India has to ensure
    consumer sentiment to spend on merchandise and services to remain in good spirits at all times
    for a positive economic outcome even after the pandemic is over or else we will lose one of the
    major contributing sectors of the economy.

    IMPACT ON EMPLOYMENT

    COVID-19 has led to a major loss of jobs, but we can’t say it only generates unemployment. In
    some areas it has created unemployment whereas in some other areas it has created an
    opportunity for employment. So here we will discuss both the positive and negative impact of
    COVID-19 on employment.

    Negative impact of COVID 19 on employment

    Unemployment is the most severe and immediate impact of COVID 19, unemployment rose from
    6.7%on 15March to 26%on 19 April and then back down to pre-lockdown, an estimated 14 crore
    people lost employment while salaries were cut for many others. Unemployment increased because
    there is less circulation of money in market so no business is getting enough money or work which
    created the situation of overemployment, and it made them to fire employees so they can save their
    cost like Swiggy lay off 1,100 employees, or nearly 14% of its total workforce, after demand for
    online food ordering dipped significantly in the past two months, and Ola on Wednesday said the
    company will lay off 1,400 employees.

    The impact of losing job is not only limited to individual and his family but it will effect whole
    market because the person who got unemployed not going to buy new cloth toys for their children
    or any other luxurious product and if 14 crore families are going to do that it will create a huge
    depression in market. Because of this the Union government is intending to give joblessness
    advantages to an area of composed specialists who may lose their positions due to the coronavirus
    pandemic. This will be along the lines of measures taken by certain nations, for example, the
    United States to battle the effect of the pandemic, otherwise called COVID-19, on the working
    population.
    Positive impact of COVID 19 on employment

    No doubt coronavirus is a threat but it created opportunities on retail sector also like when in the
    whole country we have the shortage of hand sanitizer local women of Baster (Chhattisgarh) made
    sanitizer from Mahua (Madhuca longifolia) and meet the demand of the product.

    REFERENCES

    ❖ economictimes.indiatimes.com
    ❖ thewire.in
    ❖ ibef.org
    ❖ deccanchronicle.com

    You might also like