Economy Under Lockdown | Supply Chain | Insider Take By JK Arora, Founder and CEO of Tradologie

Shaking the logistics and supply chain industry, COVID 19 has disrupted the wheels of the economy. Therefore, it is expected to take at least a year for activities to resume to pre-pandemic levels and until the end of next year for any growth.

FP Staff July 14, 2020 14:23:14 IST

Shaking the logistics and supply chain industry, COVID 19 has disrupted the wheels of the economy. Therefore, it is expected to take at least a year for activities to resume to pre-pandemic levels and until the end of next year for any growth.

According to JK Arora, Founder and CEO of Tradologie, the creation of new supply chains have come to a grinding halt. “Traditionally in business channels, everyone is going to fairs, thereby creating a new customer base and new supply chains. However, there is no possibility for new fairs at least for a year, or at least until the development of a vaccine.”

Social distancing and COVID 19 protocol have ensured a new world altogether, impacting all industries across the board. Arora adds, “For countries that are heavily reliant on tourism and travel, that majorly impact their GDP revenue will be severely impacted. For example, UAE, Mauritius, etc.”

Buyers of goods have reduced substantially, shrinking the economy and impacting purchasing power. The commodity industry continues to flourish as humanity battles on, but the pandemic produces newer challenges. Deliveries are being delayed or stopped altogether in some cases due to the lockdown. Travel channels are also being affected due to the inability to travel, or simply a lack of manpower due to migration.

The automotive industry may face 30%-40% reduction in demand. However, the healthcare sector is expected to see a boom, adds Arora.

Arora elaborates on how Tradologie allows the buyer and seller to connect globally in real time. It has a positive impact in the sense that the digital platform allows a safe platform for people to negotiate and connect. India has a vast capacity, however, a lot of exports from China ensured half of the production capacity. Now India has an opportunity to reinvent and correct the trade deficit.

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