"CARE Ratings' Survey on Impact of ongoing lockdowns on economic prospects" was conducted recently to understand and evaluate the impact of the second wave of Covid-19 and subsequent restrictions on the economy.
According to the survey, 77% (236 out of 305) believed that the investment demand in the economy will be affected while 17% (51 out of 305) stated that it will not be affected. Overall 6% (18 out of 305) were not sure of the impact on investment.
As per the Survey results the turnover in the non-essential manufacturing sector is likely to be the most affected with 76% share followed by non-essential services (excluding communication). While essential manufacturing and BFSI segments are expected to be the least affected with 9% and 18% share respectively.
52 out of 66 respondents in the nonessential manufacturing segment expect turnover of the same segment to be impacted during the first quarter.
Majority of the respondents felt that business operations are likely to be the most affected in the hotels & restaurant and travel industry with 87% and 83% respondents expressing this view. This can be attributed to the contact intensive nature of these services and restrictions for them likely to be relaxed only at a later stage. 50% of the respondents believe that construction sector will be one of the most affected.