More than half the Indian corporations are already feeling significant impact of Coronavirus pandemic even during it’s early stages. As three fourth of the companies said they are seeing a sharp cut in orders, while 80 per cent said they are facing marked fall in the cash flows, a study conducted by FICCI stated.
As consumption dips and orders dry up with people, businesses and the government moving into various stages of social distancing, Indian companies hope for normalcy to prevail in 6 weeks time under the best case scenario. Half of the companies believe things will stabilise by then and 13 per cent of the business say it will take longer period probably upto an year.
The survey was conducted by FICCI among its members companies and associations with week with over 300 companies participating in it.
The pandemic has had an impact on both demand and supply while 63 per cent of the businesses said their supply chain of components or raw materials had been delayed, a whopping 35 per cent said unsold inventories were piled up due to lack of demand.
In a study paper released along with FICCI survey noted that the outbreak has crashed the hopes of recovery of Indian economy which was under a slowdown for long time.
The report said the current outbreak has presented fresh set of challenges for the economy now, causing a significant impact on the demand and supply side elements which has the potential to derail India’s growth story.