Share on FacebookEven though the global economic meltdown had little impact on India, we were not aloof from the world for feeling the recession attack, thanks to the Satyam scandal! And now that, we were in the process of recovering from this gigantic human error, we are caught up in obstacles nature has thrown at us. Yes, it is the Swine Flu and the much awaited Indian Monsoon.
Let me give you a quick view of how and why the dreaded the Monsoon and Swine Flu are acting demons in the betterment of the pink slip pathos.
MONSOON EFFECT ON INDIAN ECONOMY
60% of Indian Agriculture is monsoon dependent. With rainfall this time being deficient by 45%, the agriculture sector has been hit hard.
Also, post economic disaster, rural India has become the focus for many organizations. But with monsoon showing no sign of rain, the rural income is bound to decrease, which eventually will affect the organization's plans and economic conditions.
Apart from this, a severe problem that bad monsoon is to bring is the rise in the price of cash crops, vegetables and fruits. This is the most dreading consequence of deficient rainfall as the basic needs of people might have to be compromised. This increase in the price of food will cause inflation to go up.
THE SWINE FLU EFFECT ON ECONOMY
Due to outbreak of Swine Flu, the government expenditure on hospitals, prevention and cure for Swine Flu is increasing, which will slowly lead to increase in fiscal deficit.
And not just this, Foreign Institutional Investors, doubtful of the Indian market situation, will withdraw their shares and sell it out which will lead to rupee value depreciation. All this will create an imbalance in the supply chain giving way to decline in GDP (due to lesser economic activities)
Industries To Be Affected By Swine Flu:
Tourism
It is obvious that tourism industry will have major negative affect of Swine Flu as traveling across the globe is slowing down for the fear of Swine Flu. If Swine Flu is not controlled soon, the peak season - October- will see the major disturbance in the Tourism Industry.
Airlines
As the movement of people flying across places will slow down leaving the Airlines business a little less profitable.
Others
Many other sectors will see a minor influence of Swine Flu as it is bringing down production and thus affecting economic activities.