Bengaluru: KPMG, in a study titled ‘Potential impact of COVID-19 on the Indian economy’, has listed seven ways in which the business landscape is likely to drift across the globe due to the COVID-19 pandemic.
Besides the immediate effects, COVID-19 will also lead to a significant change in strategies, ways of working, and mindsets of decision-makers and customers. Responding to these drifts will help countries and companies navigate the path to the ‘Next Normal’, according to the study.
The study has talked about three scenarios that can be used to explain the economic effects of COVID-19, The Hindu reported. In the first case, it sees India’s growth for 2020-21 in the range of 5.3 to 5.7%, though this looks distant at this moment. The expected range in the second scenario is 4-4.5%, while the third possibility suggests India’s growth may fall below 3% as prolonged lockdown will badly hit the economy.
The study suggests that the government should immediately focus on three areas — job maintenance and creation, provision of a safety net for all Indians and resource mobilization to support these goals.
The study further adds, there will be a shift to localization, and that digital will get a push even as cash remains the key player. The businesses will move towards variable cost models, and countries will build sensing and control tower capabilities.