TaxTMI 
TaxTMI 
TaxTMI 
Across the globe in over 175 countries, everybody is worried about current situation and trying to protect/defend oneself with the help of available resources. Let us analyse this “lockdown” into SWOT:
STRENGTHS
Lowest impact in India as compared to other countries like America, Italy, Spain etc
Fortunately India is yet to cross 2nd stage
Prompt/early corrective actions taken by Central/State Governments
On-going peak summer season
Successful overcoming experience of 2008 crisis unlike other developed countries
At least 11 months financials are ready in hand which may not much affect the financial year
Equity Investors in India are only 2% against global 40% and MF penetrators are 12% against global 60%- Much scope for attracting small investors into equity/MF markets
Hand-in-Hand co-operation between Central and all State governments
WEAKNESSES
Thick populated cities, urban suburbs
Unawareness of general public not easily willing to accept changes in lifestyle
Reluctant to adopt new things like Work from Home (except IT sector)
Health system network is very poor in India
Large scale Un-organised labour sector
Industrial imbalanced growth resulting into migration
Unintended moves of neighbouring countries
Financial illiteracy amongst major business class
Traditional way of handling business transactions in “cash”
Carrying huge unaccounted money
Habitual nature of finding out legal loop-holes,
Reluctant for legal compliance across business sector
OPPORTUNITIES
“Once in a life” opportunity to adopt new things in day-to day operations
Boost to E-commerce, on-line transactions, Work from Home in all segments
Adoption of new technological innovations
Relaxations announced by Govt. in Income Tax/ GST procedures
Financial Package declared
Decisions of RBI in relation to CRR, REPO, Reverse REPO etc
Moratorium announced by lenders
Availability of stressed assets at very low prices th’r Insolvency & bankruptcy Code -IBC (presently average resolution rate is around 30-40% of outstanding bank loans with waiver of all other creditors)
Initiate registration of all unorganised/migrated labourers so that structured policies can be framed by Govt./employers (India has 70% unorganised class)
MSME companies relieved from risk of IBC due to increase in threshold limit of default from 1 lakh to 1 crore
Finding Import Substitutes (especially from China)
Start thinking Cost reduction actively and scientifically
MF participation can be doubled
To unlearn old things and learn new things
Boost to Local employment
Business Health Diagnosis, Business Process Re-engineering will be inevitable
New way of thinking 2020 BC (Before Corona), 2020 AC (after Corona)
Big jump in Diagnostic sector
E-learning model in education sector, virtual classroom, e-books will flourish
“Social Security” will be on the top of Govt. Agenda
Indigenisation, “make in India” movement will spurt
India may have to shift from “Services” sector to “Manufacturing” sector
Govt. spending will increase manifold, MSME sector benefits
Rich class may be taxed high
Individuals may develop good new hobbies, habits in the changing lifestyle environment
THREATS
Non abiding lockdown instructions
Attacks on health workers, Doctors, Policemen
Unintended organisation of social/religious events
On-going global recession, Financial crisis, Economic slowdown
Chinese companies interested to take over certain Indian companies under IBC or other mode
Pessimistic thinking
Large number of NPA cases in banks (existing and new), increase in stressed assets
Migrated labourers may not willingly return to job without some extra monetary benefits
Employers may be required to pay for lockdown period without any productive returns
Great burden on working capital
Banks may put extra restrictions in case of credit risk
“Force Majeure” may be misused
Health/Police personnel may think of Revolt
Unemployment on large scale (30% already reported from US)
Demand and supply both will drop significantly, going away from established economics theory
GDP may drastically come down by 2%
Business model of “running behind profit” will prove wrong
Social life may come to halt at least for next few months
“Life” vs “Livelihood” will become unintended choice
Socio-economic inequality may increase
Addict people may turn into violence
“Globalisation” may be proved wrong to some extent
Entire supply chain will be affected
Suggestion:-
Have patience, remain optimistic, wait and watch, maintain social distancing, create sustainability till medication/vaccination found on Corona.
Take care of your health, family health, business health.
By CMA, IP (Dr.) ANIL ANIKHINDI