End of April and The Market Scenario
Covid-19, a global virus, which was named a pandemic. Then disruptions to trade caused a slow down in international business, which led to stock market shocks. The Covid-19 crisis has erupted when the global economy, especially the US economy, was on a reasonable sound footing and stock prices were at record highs. Central banks and governments are currently pulling out all the stops to keep together their house of cards.
The effects of the pandemic on economic activity are being felt far and wide, far beyond the airline, travel, tourism and hospitality sectors. Analysts see some impact to the January-March 2020 quarter gross domestic product. But the really deep cut will be seen in the April-June quarter (the first quarter of 2020–21), further exacerbating the slowdown in consumption and activity being witnessed in the Indian Economy.
Corona has started impacting the global economy as the countries are forced to declare locked down the cities and states to save people from the pandemic. The world’s leading economies are going down as the businesses are shut down for almost 6 weeks. There are many industries such as manufacturing, retail, pharmaceuticals, and more where the daily operations take place with the physical presence of the employees. These industries are not able to operate effectively in this situation. On the other hand, such industries like, online businesses such as digital marketing agencies, e-commerce businesses, technology service providers, etc. do not need to shut down their operations completely. They allow employees to work virtually from remote locations as they have to perform most of the operations through internet connectivity.
There are such startups who have developed the e-commerce businesses in this crucial situation. They are providing the essential day-to-day things by home delivery and this is also getting popular day by day because of the condition.
Another startup company, Zoom which market value was at $16bn in 2019. But this growth has now been far exceeded, Covid-19 meant Zoom’s daily active user base grew by 67 per cent in the first three months of this year, and the company now has a market value of $42bn.
That’s why startups are born to scale. They’re created to search for and validate a scalable business model in a way that can have a major impact on the market or how a problem has traditionally been solved. Startups are incredibly fragile and depend on consistent and predictable levels of economic, social, and market dynamics.
It is the time to press the reset button to survive the Covid-19 crisis. This can be an opportunity for the government to implement the long-awaited measures in the areas of infrastructure development, labour policy reforms, and privatization of state assets.
