Impact of Lockdown on Indian Corporates

Impact of Lockdown on Indian Corporates

Part of: GS Prelims and GS-III – Economy; Corporate sector

In news

• Recently a credit rating agency analysis looked into the effect of prolonged nationwide lockdown on Indian corporate sector.

Key takeaways

• Around 500 companies were surveyed.
• They have shown aggregate revenues contracting by 31.1% year-on-year basis in the first quarter of Financial Year 2021.
• Sectors which were most-impacted: Consumer-oriented sectors, airlines, hotels, retail, automotive and consumer durables, Industrial and infrastructure-oriented sectors, non-pharma exporters, real estate and construction companies and Banking Sector.

• Sectors which were less impacted: FMCG, consumer foods, IT, telecom, sugar and pharmaceuticals