STRATEGIES
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K.SureshKumar,Dr.N.UdayaBhaskar,Dr.R.Pardhasaradhi1HOD,DepartmentofManagementStudies,S.D.CollegeofI.T,Tanuku.
2AssistantProfessor,DCMS,AdiKaviNannayaUniversity,Rajahmundry
3Principal,SriYNCollege,Narsapur.
ABSTRACT
Coronavirusdisease(COVID-19)ishavinganunprecedentedandunpredictableimpactontheworld'seconomy Thecoronavirusepidemic(COVID19)hasaffected theglobaleconomyandservicesector Theservicesectorcanbeviewedasanintangibleeconoomicactivitythatcanneitherbestorednorresultinanyownership,but playsaveryspecialroleinthecountry'seconomy IthasaverynotableimpactontheIndia'seconomybyitscontributionwhichisaround55%ofthetotaleconomy It hasemergedasthelargestandfastest-growingsectorsoftheIndianeconomy,makinghighercontributionstonationalincomeandemployment.Thecovid19has worstimpactedeachandeverysectorofthemarketsoastheservicesector SectorslikeEducation,HealthCare,Gym,Tourismhavewitnessedadirectimpactasthe involvementofthepeople/Customers/Consumerswerelimitedorcompletelyshut.ThepurposeofthecurrentstudyistoassesstheeffectofCOVID-19onservice sectorgrowthandsustainability
KEYWORDS:Coronavirus,Pandemic,India,Economy,ServiceSector,GDP,Stratgey.
INTRODUCTION:
TheservicessectorisnotonlythedominantsectorinIndia'sGDP,buthasalso attracted significant foreign investment flows, contributed significantly to exportsaswellasprovidedlarge-scaleemployment.India'sservicessectorcoversawidevarietyofactivitiessuchastrade,hotelandrestaurants,transport,storageandcommunication,financing,insurance,realestate,businessservices,community,socialandpersonalservices,andservicesassociatedwithconstruction. Withinashortspanof50yearssinceindependence,thecontributionoftheservicesectorinIndiatothecountry'sGDPisalion'sshareofover60%.
ThispaperiswrittenbykeepinginmindthePreandPostCOVIDsituationand would depict how the service providers changed themselves during this challenging time in their business approach, the assignment focuses on positive impactithasboughtthanthenegative,itdoesn'tmeanithasn'tcreatedorleftany negativeimpact,tomentiontheCOVIDhascreatedhavocmostlyintheunorganized sector where the employees are purely dependent on daily wages, unsecuredjobsetc.,incountylikeIndiamostofthepeoplelivinginruralareamigrate tothemetrocitiesinsearchofbetterlife,whenthesetypesofsituationarisesitis only such majority of people suffer and we have seen the type of problems it imposedontheentiresystem.
INDUSTRYDEVELOPMENTS:
Someofthedevelopmentsintheservicessectorintherecentpastareasfollows:
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In October 2021, India's service exports increased by 23.52% to reach US$20.86billion,whileimportsstoodatUS$12.71billion.
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OnMarch17,2021,theHealthMinistry'seSanjeevanitelemedicineservices crossed 3 million (30 lakh) teleconsultations since its launch, enablingpatient-todoctorconsultationsfromtheconfinesoftheirhome anddoctor-to-doctorconsultations.
GOVERNMENTINITIATIVES:
TheGovernmentofIndiarecognizesgrowthinservicessectorandprovidesseveralincentivesacrossawidevarietyofsectorslikehealthcare,tourism,education, engineering, communications, transportation, information technology, banking,financeandmanagementamongothers.
TheGovernmentofIndiahasadoptedfewinitiativesintherecentpast,someof theseareasfollows:
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InOctober2021,PrimeMinister,Mr NarendraModi,approvedtheestablishmentof157newmedicalcollegestoboostaccessibilityofaffordable healthtreatmentsamongcitizens.
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InOctober2021,thegovernmentlaunchedaproductionlinkedincentive (PLI)schemetoboostmanufacturingoftelecomandnetworkingproducts in India. The scheme is expected to attract an investment of ~Rs. 3,345 crore (US$ 446.22 million) over the next four years and generate additionalemploymentfor>40,000individuals.
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TheIndianservicessectorwasthelargestrecipientofFDIinflowsworth US$88.95billionbetweenApril2000andJune2021.Theservicescategoryranked1stinFDIinflowasperdatareleasedbytheDepartmentfor PromotionofIndustryandInternalTrade(DPIIT).
Inthefirst-halfof2021,privateequityinvestmentsinIndiastoodatUS$ 11.82billion,ascomparedwithUS$5.43billioninthesameperiodlast year
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InAugust 2021, the Department ofTelecommunications (DoT) issued a letter of intent (LoI) to One Web (backed by Bharti Group) for satellite communicationserviceslicense.
InJuly2021,TataTeleservicescollaboratedwithZoomVideoCommunicationstoofferbundledcommunicationservices.
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In June 2021, India's exports increased by 48.34% to US$ 32.5 billion, markingtheseventhconsecutivemonthofgrowth.
InApril 2021, the Ministry of Education (MoE) and University Grants Commission (UGC) started a series of online interactions with stakeholderstostreamlineformsandprocessestoreducecomplianceburdenin thehighereducationsector,asafollow-uptothegovernment'sfocuson easeofdoingbusinesstoenableeaseoflivingforstakeholders.
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InOctober2021,thegovernmentlaunchedphase-IIoftheMahatmaGandhi National Fellowship to empower students and boost skill development.
InOctober2021,thePMAyushmanBharatHealthInfrastructureMission waslaunchedbythegovernment,tostrengthenthecriticalhealthcarenetworkacrossIndiainthenextfourtofiveyears.
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InSeptember2021,IndiaandtheUKjoinedthe11 EconomicandFinancialDialogue(EFD)todiscusstheFTA(FreeTradeAgreement)opportunitiesinservices.
IMPACT:
1. Insurance:ThenewbusinesspremiumforlifeinsurersinIndiashrunkfor the second month inApril, with business significantly hit by the covid-19 outbreakandthesubsequentlockdown.AccordingtotheInsuranceRegulatory Development Authority of India, in April, new business premium declined32.6%to₹6,728croreasagainst₹9,928croreforthesameperiod oflastyear Theextendedphaseoflockdownanditsrelatedrestrictionswill haveanegativeimpactonthenewbusinesspremiumsgrowthin2020.
Amonglargeprivateinsurers,HDFCLifeInsuranceCo.'snewbusinesspr
miumdropped53%to₹669crore,whileICICIPrudentialLifeInsurancesawit plungingbyaround60%to₹256crore.
2. Tourism:ThemostvisibleandimmediateimpactofCovid-19isseeninthe hotel and tourism sectorin all its geographical segments - inbound, outbound and domestic and almost all verticals - leisure, adventure, heritage, MICE (Meetings, Incentives, Conferences & Exhibitions), cruise and corporate.
TheIndiantourismIndustryisprojectedtobookarevenuelossofRs.1.25 trillionincalendar2020asafalloutoftheshutdownofHotelsandsuspension of Flight Operations after the onset and spread of the Covid 19 pandemic.
Effects:
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OnaccountofCoronavirus,theIndiantourismandhospitalityindustry isexpectingapotentialjoblossofaround38million.
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nity will open up for those companies that have been developing and strengtheninglearningmanagementsystemsforusebyuniversitiesandcolleges.
3. ImprovementinLearningMaterial:Thereisagreatopportunityforuniversitiesandcollegestostartimprovingthequalityofthelearningmaterial thatisusedintheteachingandlearningprocess.
REVIVALSTRATEGIES:
ProtectYourPeopleandCustomers:Thefirst,immediaterequirementis totakecareofemployeesandthecustomerstheyservebyprotectingeveryone'ssecurityandsafety Organizationsarealreadyfollowingpublic-health authorities'recommendations,implementingcontactlessprocesses,increasing physical distance, instituting temperature checks, and issuing personal protectiveequipment(PPE)wheneverpossible.Althoughprogressisnotuniform,theprocessshowssignsofsuccess.
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InthethirdweekofMarch2020itself,thehotelsectorsawadeclineof morethan65%inoccupancylevelsascomparedtothesameperiodin 2019.
Ÿ Withinternationalanddomestictravelonhalt,demandforturbinefuel hassubstantiallydeclined.
Ÿ IndianAssociationofTourOperators(IATO)estimatesthehotel,aviation and travel sector together may suffer a loss of about ₹ 85 billion keepinginmindthetravelrestrictionsimposedonforeigntourists.
Ÿ TherestaurantindustryinIndiaisexpectingalmostzerorevenueinthe immediateterm,andadropof50%inthemonthstocome.
Ÿ AviationindustryinIndiacouldincurlossesworth₹27,000core($3.33.6billion)inthefirstquarterof2020-21.
3. Banks: The uncertainty from COVID-19 will remain for the foreseeable future.Banksandcapitalmarketsinstitutionshavenochoicebuttoremain hyper vigilant and rewrite their business continuity playbooks as circumstances change. Banks need to actively consider the immediate needs of theirpeopleandsimultaneouslythemultiplenear-,short-,andmedium-term operational,financial,risk,andregulatorycomplianceimplications.
They have an opportunity to support market and economic activity and to facilitate a quick return to stability If banks and capital markets firms respondwelltotheseunprecedentedchallenges,theywillnotonlyhelpsociety,butalsoincreasetrustandthereputationofthe bankingindustryinthe longrun.
4. Education: COVID-19 is impacting almost every sector of the economy And,theeducationsectorisnoexception.Schools,colleges,andinstitutes arecloseeven,andstudentsareathomewiththeleastcontactwithfriends.
Indeed,evengradedtestslikeGRE,SATs,GMAT,andACTareonadelay, andthefateofstudentshanginacriticalstate!AccordingtotheUNESCO Institute for Statistics, the COVID-19 pandemic has led to the closure of schoolsin188countries,affectingmorethan1.5billionstudentsand63millionprimaryandsecondaryteachersworldwide
NEGATIVEIMPACTSOFCOVID-19ONEDUCATION:
1. Sluggish Cross-border Movement of Students: Universities in many countries such as Australia, UK, New Zealand, and Canada are highly dependentonthemovementofstudentsfromChinaandIndia.Manyparents will avoid sending students abroad for higher education due to high risk fromthepandemic.
2. PassiveLearningbyStudents:Thesuddenshifttoonlinelearningwithout any planning-especially in countries like India where the backbone for onlinelearningwasnotreadyandthecurriculumwasnotdesignedforsucha format--hascreatedtheriskofmostofourstudentsbecomingpassivelearnersandtheyseemtobelosinginterestduetolowlevelsofattentionspan.
3. UnpreparedTeachersforOnlineEducation:Onlinelearningisaspecial kindofmethodologyandnotallteachersaregoodatitoratleastnotallof them were ready for this sudden transition from face to face learning to onlinelearning.
POSITIVEIMPACTSOFCOVID-19ONEDUCATION:
1. RiseInBlendedLearning:Universitiesandcollegeswillshifttoamodel of blended learning where both face to face delivery along with an online model will become a norm. This will require all teachers to become more technologysavvyandgothroughsometrainingtobringthemselvestothe levelthatwouldberequired.
2. LearningManagementSystemstobeTheNewNorm:Agreatopportu-
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StabilizeASuddenlyVirtualWorkforce:WFH needs have now reached wellbeyondthescopeofrolesanddurationofactivitiesthatmostorganizationshaveevercontemplated.Ascompanies“virtualized”workforcesovernight,itbecameevidentthatWFHlooksverydifferentinlarge,coreoperationsfunctionsthaninmanycorporateroles.
Ÿ Manage Service-level Expectations and Contracts: For many organizations, the unfolding crisis has caused shifts in customer demand that are unprecedented in both magnitude and suddenness. Organizations are rushingtoreorient,seekingtorespondtothefluctuatingdynamicswhilemaintainingefficiency—evenasrevenuesandcashflowbecomeunpredictableas well.
CONCLUSION:
ServiceSectorhasbeendeeplyimpactedbyPandemic.Itresultsindisruptionof so many services, causing many companies to go belly-up. However, essential services are trying to maintain the pace with the rising demand. Collaboration amongvarioussectorsandindustriesistheonlywaytooverpowerthisinvisible enemy By2025,healthcareindustryisexpectedtoreachUS$372billion.India's digital economy is estimated to reach US$ 1 trillion by 2025. By end of 2023, India'sITandbusinessservicessectorisexpectedtoreachUS$14.3billionwith 8.25%growth.
OnServiceSector,theCovid19impactishuge,butthecountryiscomingtonormalcyfromtheCovid-19secondwavebutwiththeeffortsofGOI,wearesureto seetacklingofthecasesincaseofthirdwaveofCovid-19pandemic.PostCovid19willbethegamechangerforindustryingeneralandservicessectorinparticularasweareallgearinguptofacethechallengewithapositivenoteofembracing thenewnormalinIndia.
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