Sethurathnam Ravi (S Ravi BSE) views on the capital market affected by Corona Virus Former BSE chairman S Ravi sheds light into the economic structure affected by corona virus. He says that the globe faces an economic upheaval potentially more severe than witnessed during the 2008 global financial crisis. The coronavirus pandemic is pushing the Globe to an unprecedented territory, where both the best- and worst-case scenarios spell a catastrophe. Never before have modern economies shut down at once. The global economy could shrink by up to 1 per cent in 2020 due to the coronavirus pandemic, a reversal from the previous forecast of 2.5 per cent growth, the UN has said, warning that it may contract even further if restrictions on the economic activities are extended without adequate fiscal responses.
The former BSE chairman then moves to the economic situation in India. According to him, Growth in India subdued after the country suffered a sharp slowdown over the last 6 quarters and the global health emergency in the last quarter further puts the economy in the dark. Tourism, Hospitality and Aviation are among the worst affected sectors that are facing the maximum brunt of the present crisis. Consumption demand, the bedrock of Indian economy, has been affected severely as purchasing decisions of both essential and discretionary items are being delayed. Furthermore, India is among the top 15 countries that have been affected most as a result of manufacturing slowdown in China that is disrupting world trade. According to UNCTAD, India’s trade impact due to coronavirus outbreak could be about US$ 348 million.