M K Verma
Mumbai : The COVID-19 pandemic has engulfed the whole world impacting the entire Political, Economic, Social, Technological, Legal and Environment (PESTLE ) structure of Nations across board. It will take long before the European Countries, USA, and Gulf Countries streamline their resources and economy.
What about India ?
1. The COVID -19 has not been able to affect our Agriculturists and thus the Govt. has allowed sowing of Kharif Crops(Paddy, maize, bajra, jowar). India is world’s 3rd largest producer of grains and the present crisis will enable India to emerge as one of leading Country Exporting Grains and pulses . This will improve our Balance of Payment.
2. The Gulf oil price crashing down to $ 21/ barrel from $67/barrel and US oil prices turned negative for the first time in history on April 20, 2020, amid the deepest fall in demand in 25 years. This will lower the Inflation as well as benefit Industries, Logistic Companies, and push overall consumption of Oil as due to the Price per Barrel Cost to Company will come down drastically adding to their betterment in Margins.
3. The way US and other Gulf countries require Hydroxy Chloroquine, BCG Vaccine, Paracetamol and related medicine from India will enable the Pharma Industries to double and triple their capacities and earn dollars for themselves as well as for the Country. Our Ayurvedic and Naturopathy treatments and medicine to improve immune system will be other attractions for other counties.
4. The Millennium force of dynamic entrepreneurs and startups will have immense opportunity to excel with their new innovations and products. The Venture capitalist Funds are ready to be Equity partner if the venture is technically sound and financially viable.
5. On April 17, 2020, RBI Governor came out with post COVID -19 measures to infuse substantial funds and help Banks, NBFC”s, MFI to have sufficient liquidity to fund the Real Estate Sector, MSME & Agriculture Sector especially the infusion of funds through second dose of Targeted Long term Repo Operation ( TLTRO2.0) , extending NPA norms from 90 days to 180 days for standard Assets, reducing Reverse Repo Rate by 0.25% basis point & Rs 50,000 Crore of special finance facilities extended to NABARD, SIDBI and NHB will facilitate bank credit flow at low cost.
6. COVID-19 will also open gates for Indian Spices, Vegetable and Fruits.