The Indian economy has been experiencing a significant slowdown over the past few quarters. In the third quarter of the current fiscal, the economy grew at a six-year low rate of 4.7 per cent. There was a strong hope of recovery in the last quarter of the current fiscal. However, the new coronavirus epidemic has made the recovery extremely difficult in the near to medium term, said the industry body FICCI in a report on Friday.

In the report titled, Impact of Covid-19 on the Indian Economy, the industry body pointed out that tourism, hospitality and aviation are among the worst affected sectors that are facing the maximum brunt of the present crisis. Closing of cinema theatres and declining footfall in shopping complexes have affected the retail sector by impacting consumption of both essential and discretionary items,

Consumption is also getting impacted due to job losses and a decline in income levels of people particularly the daily wage earners due to slowing activity in several sectors including retail, Construction and entertainment, the report said.

FICCI, in the report, added that China has been a major market for many Indian products like seafood, petrochemicals, gems and jewellery. The outbreak of coronavirus has adversely impacted exports of these items to China. For instance, the fisheries sector is anticipated to incur a loss of more than Rs 1,300 crore due to a fall in exports. India also exports 34 per cent of its petrochemicals to China. Due to exports restrictions to China, petrochemical products are expected to see a price reduction.