Business 2020: 2020 will be recalled because of the lockdown and curfew imposed for measures to curb the havoc of Coronavirus. The corona lockdown brought the worldwide economy to a standstill. The Corona crisis not only affected the economy but also changed the outlook of investors as well as increasing unemployment. The Indian stock market touched its highest level in 2020. Those investing in the IPO got battered and the gold-silver shine also increased. Improved monsoon and shopping for wedding ceremonies strengthened the traditional market and increased demand in urban areas during the festive season gave a new lease of life to the online shopping market.
The auto sector also broke sales records in October-November 2020. This year was excellent for the medical world. Work from home trends set in the country. However, tourism, education, Bollywood etc. would want to miss 2020. These things strengthened the Indian economy and the markets appeared to be recovering from the havoc of Corona. During the Corona period, people reminded of the recession in 2008 and the subsequent boom.
Lockdown: Many countries of the world resorted to lockdown to halt the growing havoc of coronaviruses. Prime Minister Narendra Modi also imposed a lockdown in India from 24 March to 31 May. During this time economic activities in the country came to a complete halt. The lockdown stalled production across the country. Millions of people became unemployed. People have also longed for everyday things in the country. In this difficult time, industries had to shut down the machines which never shut down. When the country saw the biggest exodus of laborers, seeing the situation becomes normal, they were called from the plane to win their trust. Everyone from industrialists to laborers has faced the brunt of the corona lockdown and no one will be able to forget it easily for life.
Indian Economy: Indian economy suffered huge losses of millions of crores due to lockdown. Industry businesses broke back, the government could not get much tax. On the one hand, people did not have work, on the other hand, the increasing expenditure gave emphasis on the people’s muscle. However, the government has done its best to handle the economy by issuing an economic package of 20 lakh crores.
The economic package became a boon for the economy as well as due to the right planning of unlock, the country saw a boom in many sectors. Work from home culture established in the country. It gave a new direction to the IT sector. On the other hand RBI also provided relief to the common people in loan installments through loan moratorium. According to data released on public debt on December 30, the government’s total liabilities increased by 5.6 percent to Rs 107.04 lakh crore for the quarter ended September 2020. At the end of the first quarter of the current financial year, the government’s total debt outstanding was Rs 101.3 lakh crore. The 5.6 percent increase in total liabilities on a quarterly basis reflects pressure on revenue collection and rising spending due to the Covid-19 crisis. Overall, as fast as the economy fell this year, by December, the expectation of a boom in it was seen again. However, Corona will see an impact on the Indian economy for many years to come.
Struggle days in these sectors: Healthcare sector, e-commerce sector, IT sector, except for a few sectors, it had a bad impact on almost all sectors. Many sectors including tourism, hospitality, real estate, education, aviation, transportation have reached the verge of ruin. The agricultural sector suffered a major setback first by Corona and then by the peasant movement. When some sectors like the auto sector, the manufacturing sector were seen struggling in lockdown, the situation changed rapidly as soon as they were unlocked. The banking sector was supported by a relief package. The actual impact of the lockdown will be known in 2020.
Bailout Package: On 13 May 2020, the government announced a massive stimulus package of Rs 20 lakh crore. This relief package was divided in such a way so that the economy could get back on track as soon as possible. It was about 10 percent of the country’s gross domestic product (GDP). The economic package was meant for workers, farmers, honest taxpayers, micro, small and medium enterprises and cottage industries. Land, labor, cash and law were all areas of focus in the package. Everything from self-sufficient India to local for vocal was included in the package. Earlier, the central government had announced a relief package of Rs 1.74 lakh crore for the poor, elderly and farmers.
Stock market: People will remember the year 2020 because of corona virus and lockdown and the stock market will rarely forget it. This year will always be in the minds of investors due to the ups and downs in the market. When the Sensex rose by more than 20,000 points this year, the Nifty also saw a fluctuation of more than 6000 points. The Sensex saw its low at 25639 in March 2020. The Nifty also fell to 7511 this month.
In the early days of the Corona virus pandemic, there was a 30 percent drop in Indian markets. After this, there was a strong improvement in the stock market. Since April this year, the stock market saw a huge increase of around 70 percent. By the end of December, both the Sensex and the Nifty were at an all-time high. On December 31, the Sensex appears to be moving towards 48,000, then the Nifty has also gone 14.
Petrol-Diesel: Due to lower demand for crude internationally due to Corona, its prices have seen a huge reduction. It became 16 percent cheaper. Crude was at $ 67 per barrel on 31 December 2019, while on 29 December 2020, this crude is trading around $ 51.38 per barrel. However, the countrymen could not get its benefit.
Companies that decide the price of petrol and diesel every day turned a blind eye to this. Not only this, instead of decreasing the prices of petrol and diesel, they went upside down. Petrol became expensive by about 8 rupees and diesel and about 6 rupees. Petrol and diesel prices in Delhi were Rs 75.14 per liter and Rs 67.96 per liter respectively on 31 December 2019. At the same time, petrol is being sold in Delhi today at Rs 83.71 per liter and diesel at Rs 73.87 per liter.
FPI: Foreign Portfolio Investors (FPI) have invested a record Rs 1.4 lakh crore in Indian stock markets this year. This is their all-time level of investment. However, FPIs have withdrawn Rs 1.07 lakh crore in 2020 from the debt or bond market. This is the fifth occasion in history when FPI’s net investment in shares has crossed Rs 1 lakh crore in a year. Earlier in 2019, FPI invested a net of Rs 1.01 lakh crore in shares. According to NSDL data, FPI infused Rs 2,41,119 crore into the Indian capital market in 2020 while withdrawing Rs 1,41,614 crore. In 8 months this year, foreign investors invested money in Indian markets and withdrew their money only in the month.
Mutual Fund: This year proved to be a great return for mutual fund investors. Investors who invested in small caps got huge returns. Those investing in midcap funds also benefited. However, given the lack of funds in the Corona era, a large number of people withdrew their money from equity mutual funds in 2020. According to Sebi data, net withdrawals from mutual funds in the year 2020 reached Rs 28,000 crore during January to November. During this period, the investors who introduced moderation also made huge profits. Mutual fund investors expect similar gains in 2020.
Increased interest in gold: In early 2020, the price of gold was Rs 39,100 per ten grams in the domestic market and $ 1517 per ounce in the international market. However, due to coronavirus, people considered gold to be the safest investment. On seeing this, its prices increased rapidly and in August it reached Rs 56,191 per 10 grams. In the international market, its price was recorded at $ 2075 or 1.52 lakh rupees per ounce. It is currently close to 50,000. On the other hand, silver was close to 47,000 thousand in January and fell to 39500 in March, after which it reached 68 thousand, holding fast.
Employment situation: Due to the coronavirus, the condition of people in employment has been very poor. In 2020, freshers did not get employment, while millions of experienced people lost their jobs. The Modi government, through about 15 new schemes this year, helped the people on the verge of ruin in the Corona lockdown stand up. As economic activities started gaining momentum in the country, those who lost jobs started getting employment again.
According to EPFO, between April and October, 39.33 lakh new subscribers were added to the country. According to data released by the Center for Monitoring Indian Economy, the unemployment rate reached a record 23.52 percent this year due to the corona virus, which rose to an unemployment rate of 6.51 percent in November. This brought great relief to the government.