Business sentiments during India's national lockdown: Lessons for second and potential third wave.

ABSTRACT: The implementation of the COVID-19 national lockdown announced suddenly in March 2020 in India provided a unique opportunity to capture real-time changes in business sentiments during episodes of unexpected and sudden disruptions. Using a logit-probability model to analyse data of this natural experiment showed that firms' 6-months ahead sentiments for its financial condition worsened drastically during lockdown compared to firms surveyed immediately prior to the announcement. Further, smaller firms showed a relatively higher impact. We also find that firms perceive this as a relatively higher demand shock in terms of falling domestic sales post-lockdown whereas supply shocks are perceived to be on the downside. Lastly the mitigation strategy of firms involved reducing employment for unski

SUBMITTER: Bhandari B 

PROVIDER: S-EPMC8628138 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature