The novel coronavirus (COVID-19)<\/strong> represents a global pandemic; witnessing possibly a once-in-a-lifetime<\/em><\/strong> event, and has tested the health care system utmost to their potential. It is also creating a negative impact by cutting down the economy with a shock of massive proportion. Further, focusing on the current news, the Prime Minister of India has announced a lockdown for 21 days extending up to 14<\/em><\/strong>th<\/em><\/strong><\/sup> of April 2020<\/em><\/strong> to break the chain of the virus. <\/p>\n\n\n\n Amid\nlockdown, we see constant fluctuations in the Stock Market<\/a>, leading to trigger\nample circuit breakers on Sensex and Nifty. The stock market has witnessed one\nof the worst crashes over the last century, and the investors are losing money\nby each passing day which is creating a panic like situation. <\/p>\n\n\n\n The\nimpact of coronavirus is the most on startup businesses\nas they are being tested and tried out of this situation. The brilliant\nbusiness ideas which were aiming to get its operations up and running are in\nsearch of seed funding. The seed funders are shying away from any new\ninvestments seeing the weak market conditions over the past two months.\nFurther, the interested venture capitalists who are ready to fund the ideas\n(particularly those with views seen as genuinely revolutionary or those\nattached to individuals with a proven track record of success) are also finding\nit tough due to the large communication gap; created out of the lockdown and\nthey are not able to discuss their business strategies widely. <\/p>\n\n\n\n The\nVenture Capitalists and Private Equity Funders are issuing cautionary advice to\ntheir portfolio companies. They have advised to save their cash and reach the\nbreak-even without utilizing their abundant resources as the coming times will\nbe tough and brace for a possible uncertain fund-raising environment.<\/p>\n\n\n\n After\nheading much of the risk capital market’s hyper-growth in recent years, venture\ncapitalists are poised for a decisive assay of their zeal for funding startups.\nHeading into 2020, it wasn’t irrational to predict another record year for VC\nfinancing involving corporate risk capital arms.<\/p>\n\n\n\n But\nthat was before the coronavirus outbreak brought the world economy to a\ndeadlock. And now turmoil spurred by the global health emergency has given rise\nto an alternative for business decision-makers. The Coronavirus (COVID 19)\nimpacted big ventures real-time as their managements have decided to freeze any\nnew hiring and defers in hikes and bonuses. <\/p>\n\n\n\n India’s\nstartups and mediocre ventures’ reliance on China Imports is spread across the\nsectors. The dependence on China has decreased, though only slightly, over the\nlast five years. The significant dependency of importing the small tech-based\nproduct and assembling the same in India is helping to boost their environs.\nInvestments and Ideas shared by the Chinese companies are helping boost the\nlocal ecosystem.<\/p>\n\n\n\n The\nIndian pharma industry is most vulnerable to Chinese imports to manufacture the\nmedicines — the APIs (active pharma ingredients) come from China. The active\nsmartphone market is also gained as one of the most significant imports tags.\nThe Indian founders of electronic gadgets are facing a sharp decline in their\nbusiness as most of their imports of electronic parts which later used to get\nassembled in India were from China which used to be cost-effective. <\/p>\n\n\n\n While\nChina will start its business operations in the coming time, the experiences of\nChinese firms and entrepreneurs can help as an allusion for the businessman in\nIndia, where daily cases of the coronavirus are still swiftly increasing. The\nIndian Ventures should take note of the same and plan their business model for\nthe next coming quarter more vigorously and shape their team, which will\ninstead pick up once this pandemic situation gets cleared. <\/p>\n\n\n\n Chief\nEconomic Advisor Krishnamurthy Subramanian, spotted a rigorous opportunity of\ndeveloping the ecosystem with the help of self-dependency, said the coronavirus\noutbreak in China provides an opportunity for India to expand exports.<\/p>\n\n\n\n “It’s tough to say how this will manifest in terms of India’s trade relations with China. If we go by the experience of SARS<\/a><\/strong> (outbreak), India was not affected that much,” he said. Complexities in the Indian manufacturing ecosystem make it difficult for India to quickly take advantage of the disruption in global trade. However, good tidings have been emanating from India’s high-tech factories in recent years.<\/p>\n\n\n\nStartups\nand Funding Struggles due to Coronavirus COVID-19<\/h2>\n\n\n\n
Dependency\non China for Imports <\/h2>\n\n\n\n