![\"\"](\"\/wp-content\/uploads\/2020\/08\/will-covid-19-impact-traditional-recession-proof-industries-1.jpg\")
<\/figure>\n\n\n\nHealthcare <\/strong><\/p>\n\n\n\n With the rise in COVID-19 cases and the nationwide lockdown that ensued, the\nfinancial markets globally went into a tailspin. But it is noteworthy that the\nrecovery since March was led by pharma stocks. Healthcare industry and the\nhealthcare professions are expected to deliver big time. <\/p>\n\n\n\n Prime Minister Narendra Modi in his address to an industry body\nearlier this month, said that India has sharply increased its manufacturing of\nPPE kits and is exporting them. Besides, the healthcare sector will be among\nthe foremost beneficiaries of the stimulus package announced or even planned in\nthe future to fight the ongoing pandemic. <\/p>\n\n\n\n However, this does not mean the sector has not borne the brunt of\nthe disruption in economic activity due to the virus outbreak. India imports a\nvariety of medical equipment and products from China. Ever since the outbreak,\nthe industry is unable to import raw materials and necessary electronic\ncomponents from China.<\/p>\n\n\n\n While healthcare is a traditional recession-proof sector, the COVID-19 induced downturn\nis of a different nature. There is still considerable uncertainty as to how the\npandemic will pan out in the future. Despite these factors, the trend in the\npharma stock suggests that it is already the most trusted during a pandemic.<\/p>\n\n\n\n Food and Restaurants<\/strong><\/p>\n\n\n\n Brick-and-mortar food businesses were facing effects of an\neconomic slowdown even before the pandemic hit. With a country-wide lockdown\nand safety considerations even for delivered food, the food and restaurant\nindustry that had a turnover of Rs. 4 lakh crore and directly employed over 7\nmillion people has been hit severely by the coronavirus outbreak. <\/p>\n\n\n\n Recent reports suggest that 40 percent of all restaurants and\ncloud kitchens might be permanently shut due to the government imposed lockdown.\nPost the lockdown period, hygiene protocols in dine-outs may raise the cost by\n4-5 per cent and social distancing norms might see restaurant occupancy falling\nby at least 20 per cent.<\/p>\n\n\n\n The restaurants in Mumbai and Delhi that make about half of the\norganised restaurant business in the country are likely to see a slow rebound\nwhen the lockdown is lifted as both these cities are red zones and make for\nmore than 30 per cent cases. <\/p>\n\n\n\n While food delivery has faced a softer blow as compared to the\nrestaurant industry, the National Restaurant Association of India has estimated\na 70 percent fall in the food delivery business. <\/p>\n\n\n\n Therefore, the food and restaurant sector may not be a safe bet\nduring this recession. <\/p>\n\n\n\n Freight and Logistics &\nrepair sector<\/strong><\/p>\n\n\n\n Travel and tourism sector is currently facing an unprecedented\ncrisis. However, the freight and logistics sector has always been considered recession proof. Although logistics has been categorised as an\nessential service, operators –especially inland logistic companies — have\nreported disruption in business owing to the shortage of workers and the health\nenvironment checks (HEC). Prominent rating agencies expect the sector to\nstruggle in the next 6 to 9 months but recover in FY22. <\/p>\n\n\n\n The freight and logistics sector is better placed for a recovery\nbut it might be a classic case where it may not behave as a recession proof industry.\nRating agencies are anticipating a contracting in this sector too. <\/p>\n\n\n\n Consumers tend to go for repairs rather than making big\ninvestments like buying a car or new AC. Therefore, the ancillary sector tends\nto maintain its growth during a recession. While the Indian automobile sector\nwas already facing a massive demand shortfall, the Covid-19 pandemic might make it worse. However,\nthe repair sector like the tyre sector may not witness a huge impact. <\/p>\n\n\n\n![\"\"](\"\/wp-content\/uploads\/2020\/07\/covid-19-1024x683.jpg\")
<\/figure>\n\n\n\n