COVID – 19: Financial Crisis Effects, Opportunities and Future - Tanishka Chaturvedi
Updated: Nov 29, 2020
“Coronavirus Pandemic”, this word has put a halt to almost every industry in the world. This catalyst dragged the world to the Financial Crisis. The IMF chief Kristalina Georgieva, in the month of March, officially declared, as quoted below “It is clear that we have entered a recession” that will be worse than in 2009. Yes, you read it right recession now this is the word which fears everyone in the world whether it's a daily wage worker or top-notch entrepreneur and as much as one hates it, nearly everyone has suffered or is experiencing some kind of adverse effects in their lives. Even a luxury commodity like lab-made diamonds, now this might seem inconsequential or may be insignificant to you but these have the power to adversely affect the economy of a country, how, taking an example of Surat’s diamond industry the workers and labour working there from the fear of the pandemic stricken disease stopped working which led to an abrupt break to the manufacturing unit and as India being one of the world’s biggest exporter of the aforementioned, it is hugely suffering from the financial losses not only to the Industry owners but also to the workers and labours. This was a single instance of how even a luxury commodity can affect a person’s essential ones.
The world, being faced with a recession, affected the stock market and share market all over the world. According to the IMF, World Economic Outlook report Both advanced economies and emerging market and developing economies are in recession major economies have also been significantly downgraded Not only this the real GDP growth year on your percentage change has also been recorded as far as India is concerned the data and forecasts presented on a fiscal year base with FY 2020/2021 starting in April 2020 India's growth was recorded 0.5% in 2020 based on the calendar year.
There is a conventional legal Maxim that says Law is Recession-proof (Andrew Kitchenman, Recession Changes the Letter of the Law, November 16 2009) But clearly, the time is evident that law as a profession is not recession-proof, after all, leading with the law firms an independent advocate is suffering however I would like to draw the reader’s attention to watch the opportunities this pandemic and the recession holes for each and everyone in particular to the law profession. The world has moved far ahead from the after-effects of a previous recession or previous financial crisis and advanced technology has taken a pace to meet the world needs and demands so one thing is very clear the industry or the profession or take it the individual which is tech-savvy or which has the ability to adopt the technology for its benefits not to meet its needs can successfully cope with the pandemic and the challenges of today's world. There is an opportunity for the legal profession and the one weather a law firm or a corporate firm or even an independent advocate who is tech-savvy can resort to settling the matters through ADR, in particular, the civil matters instead of rushing to the courts for virtual court hearings and increasing more pendency of cases as the courts already are burdened with previous pending cases. This method can benefit the aforementioned and earn more clients and manage client relationships through this pandemic.
Last but not the least each and every industry today needs to resort to new technology to run their business and on profits while the pandemic and post-pandemic.