The Covid-19 pandemic has had an impact on all aspects of businesses right from shaving off earnings to having to let go of staff to maintain solvency. In the current scenario, a granular impact analysis of COVID-19 on count & contributions across states & industries in the period between February & October brought forth some interesting insights.
As of February 2020, as few as 5.6% (approx.) of the total entities filed nil contribution in the month. An analysis of subsequent months’ data shows a significant change in numbers; recording a jump of 384% (from February) in entities contributing nil towards EPFO by October. This is a clear indicator that the significant impact the pandemic has had on the business health of the country, is far from over.
Breaking the data down state wise showed that the contribution of the top 5 states; Maharashtra (24%), Karnataka (16%), Tamil Nadu (10%), Delhi (7%) and Telengana (6%) amounted to 64% of the overall contributions as of February 2020. However, interestingly a 12.6% increase was observed in the average contribution between February & October, as opposed to an overall drop in the figures. Breaking these figures down to the state level, Mizoram saw the highest average contribution despite have a measly 0.01% share in the larger picture.
A deeper industry wise analysis throws up bleak figures, with the Textiles & Garments industry showing the largest dip with a 65% drop in contributions, closely followed by the Entertainment Industry (Cinemas and theatre) with a 58% drop, the Hospitality industry with a 43% drop and the education industry showing a 29% drop in contribution. By comparison, the FMCG and Mines & Metals industries fared much better than the others, recording only a 7% & 5% reduction in contribution to EPF, respectively.
With an insight in the figures indicated in the report, it is wise to ensure your business is well prepared and recovery is swift. Furthermore, these insights, provide an understanding of industry and state-wise trends, thus enabling more focused decisioning towards lending, especially in the current economic recovery state that the country is heading towards.
With non-contactable numbers rising from 1% in Feb 2020 to 17% in April 2020, it is important to pre-emptively authenticate all customer contacts to identify how many of those are still connected to a device and are reachable.
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