This article is written by Khushi Sharma, currently pursuing B.A.LLB (Hons) from IIMT and School of Law, IP University. This is an exhaustive article which deals with industries which are getting more investments during COVID-19.
COVID-19 being the most hyped-up issue in recent times has been in publication for almost four months globally and for almost two months in our Country. It has and still is enjoying the limelight to the fullest. All of us are mostly aware of what COVID-19 is, so I will not go into detail about what it is and rather focus on the impact which this crisis is having presently on investment in the industrial sector. This pandemic is not as light as people are supposedly taking it. It has been infecting people which has led to an adverse situation and an unthinkable circumstance for the society.
But on the contrary, Due to this virus, Indian investors are witnessing a full-blown bear market and the frontline BSE Sensex index has tanked 30% from its January peak. The earlier crash had seen the index lose 60% of its value. But in contrast, you will be amazed to hear that it has led to a good and a positive impact for some industries. Investments of such industries which I will talk about further in this article are being increased.
Though this virus is leaving negative impacts on the economy, people and of course corona beer, it is still making a good source of money for some industries at the same time. You will see, the investments of the industries that have been extremely moderate earlier are raised to a real hype and this is happening not only in our country but worldwide.
Industries which are getting more investments because of COVID-19 crisis
Now, we will understand in detail which industries are having increased investments and are being the actual primary suitors for the general public to resort to. Some of these industries are being noted below as follows:
Hospitals are the only industries in business that will never run out of workload. In a way by helping millions inclusive of having a continuous increase in its investments. There has been a rapid increase in the investments of hospitals due to this pandemic. Many industries like Mercedes-Benz and Patanjali are investing in hospitals and helping in hospital equipment.
Hospitals are currently holding approximately and widely about more than four thousand citizens and not only holding but by also giving them all sanitations and required treatment for this virus. Every person, even those who have not been affected rushes there at the slightest symptom of COVID-19.
As you all know, it’s not only under this crisis that we see hospitals as the first place to go in need. This also happens in usual scenarios. In this present situation, people are becoming more and more conscious about their health and are ready to invest even more just for some consultation from these facilities. Just as we are talking about hospitals, we must not forget to appreciate the nurses and the doctors who have been working day and night to remove us from this crisis. Thus, according to my data, the hospital will be the primary and the most invested industry amongst all.
Another important industry that never runs out of business is pharmaceuticals which work hand in hand with hospitals. Pharmaceutical industries might have investments at the same level as the hospitals. Rather than going to doctors and hospitals directly, people find it easier to just go to pharmacies and chemists and get medications for themselves.
The general increased investment in this area is because chemists and pharmacies are widely and easily accessible. This is also because they are more affordable for people rather than to approach hospitals, except in chronic and serious issues. Pharma stocks have seen a gradual increase in investment because of COVID-19.
The reason for increased investments in the present situation is because this can be treated only through ICU. The general public not only invests but is also keen to be informed about the researches and solutions which are in process for this virus. Moreover, due to this amid lockdown, people have been stocking medicines to a great extent. This is because people cannot get out of their houses so they have stacked up all the essential medicines.
Further, the government has been investing a lot in the treatment of patients and are investing in pharmaceuticals as well as hospitals. The department of Pharmacy has introduced schemes for pharma based growth almost worth Rs. 10,000 crores.
Here comes another branch of the health industry that is diagnostics. Diagnostic centres are basically testing centres like centres for blood tests or for other types of body testings. Such centres also deliver reports of the test and make advisory comments which you have to get checked by a doctor. They are probably the most important centres in this crisis. Their work is to tell whether a person is infected with this virus or not. They conduct tests in order to find out the results. The investments in such industries have increased due to the fact that a lot of tests have been conducted on a regular basis.
The government has created various test centres in different areas and some private centres have also started conducting COVID-19 tests. This is at a great disadvantage as they are really expensive and people prefer government aid, which is why the government is investing in such centres. The people who are suspected of having this virus take this test once but the people who were tested positive of novel coronavirus have to take it various times to check whether they have been recovered by it or not which actually increases the investment in some way.
There has been a gradual increase seen in the online platform as it is the only refuge for everyone under lockdown. Every person resorts to online sources in one way or the other; either in a work form or an entertainment form. There has been an extreme rise in viewers of Youtube and I think a person of any age resorts to Youtube as it is the most widely used application.
Online usage has been also consumed by a huge level from the work aspect. Every person is working from home the only way of doing the same is through conferences or usage of the internet. This also increases the investment in these areas as extensive data is being used. The other online platform is none other Netflix, which is the home to millions right now. Coming back to investments, Netflix stands the most invested online platform because it is being used worldwide and by almost every person.
People are also investing in the online platform by showcasing their talents through different apps like Tik Tok and sharing their food recipes to Youtube and Instagram. Due to this increase in demand, their investments have become higher than the usual. With increasing workloads and even with the risk of being infected, the media has also been channelizing the current position of our country to its public on a daily basis.
The general public is more attracted to news and media instead of movies and series as some households are avoiding newspapers as it increases the risk of virus, the alternative for the general public stands the media and the news channels. As there is a full day coverage about this virus in the media; people can watch it anytime. There has been an increase in investment in the media industry due to this reason. It has also helped many small news channels to cover headlines and help the public in general.
Sanitary product manufacturers
Sanitary product manufacturers have been subjected to a Industries and manufacturers of sanitizers, masks, cleaning sprays, toilet papers and tissue papers were moderately invested industries earlier, but it has been hit with such extreme demand. Earlier, only a few people used to resort to sanitizers and masks but after the COVID-19 crisis, not even a single shop was seen with the stock of these.
Sanitizers and masks are hugely in demand, People went on buying them in numbers which left the other people who may actually need it without a proper supply, people started even selling fake sanitizers. Before this lockdown, people started stocking tissue papers and toilet papers and which left in lack of supply.
Online shopping sites
With this amid lockdown, the only source of purchasing things are shopping sites. As people do not go out of their houses, so the only option left with them is to purchase through online websites and applications. Though these apps and sites have set their priority to basic necessities and not on other things. Applications like Big Basket, Groffers, Amazon and Flipkart etc have seen an increase in investments. Due to this increase in demand, their investments have become higher than the usual.
Another area which has seen an increased investment is the television industry, as all the family members are present in the houses and nobody has to go out, the television is the best leisure. The people who don’t have internet services, television still stand for their favourite past-time. As a huge public is watching T.V, the TRP (Television Rating Point) of the shows are actually increasing. As we all know the government has taken the initiative to start shows like Ramayana, Mahabharata and Shaktiman on Doordarshan. Due to the nostalgia one feels when watching these shows, Television has been subjected to a growing TRP.
Digitized payment alternatives
As we know this virus is very contagious and can spread through human contact very easily. Money still remains one of the very risky factors of spreading such viruses. People are realizing how highly dangerous it would be to transact via handing money. They have started adopting digitized money transactions.
There has been an increase in investment in applications like Paytm, Googlepay and Phonepe etc. As people are usually shopping online there is also an increase in using digital cards and the people are also not spending more and more on going out, so they have started saving money while increasing investments in the banks too.
These were the basic impacts which had on the investments of different industries. People have been scared because of this virus and are actually following the lockdown, due to which the best remaining alternative for past-times remains online platforms like Netflix, Youtube, and Instagram, etc. Another point is that the alternative for them to buy groceries and other essentials reach only to online shopping sites, due to which the demand of these industries have actually increased.
Media are channelizing the current information or news almost daily on a full day coverage which also increases the investment as more and more people are keenly interested in knowing as to what is the current status of our country. The most invested industry still stands to be hospitals in which the doctor and the nurses are actually working so hard to get the people out of this virus and recover them.
Pharmaceutical and hospitals work collectively, without pharmacies and people assisting it, the medications for the treatment would not be delivered and the process of recovery could not have taken place. The diagnostic centres also are very important for such a condition because they only inform people about their actual condition.
With the world running over face masks and sanitizers, some people are actually busy making them and giving them to people who actually need it. It is our time to return to all these services with our cooperation and standing together. We have to fight his crises together and also have to take care of our family.
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