COVID to hit tourism, MSME, aviation & automobile sectors hard in coming months: RBI survey

New Delhi, July 27 (KNN) The aviation, automobiles, construction, MSME and tourism & hospitality sectors are the five sector which are adversely affected by the COVID-19 pandemic and will be hit hard in the coming months, according to a systemic risk survey by Reserve Bank of India (RBI).

The banker's bank conducted the survey during April-May 2020 to capture the perceptions of experts, including market participants, on the major risks faced by the financial system.

Respondents opined that while most sectors face sizeable and immediate revenue losses, the adverse impact is seen in sectors where consumption spending is discretionary in nature.

''Within the tourism sector, about 90 per cent of the respondents mention that the prospects of recovery within the sector in the next 6 months appear bleak. The aviation sector appears to be a close second, with about 85 per cent of the respondents categorising the future prospects as bleak,'' said the survey.

In the Micro, Small & Medium Enterprises (MSME) sector, 60 per cent of the respondents view a bleak recovery in the future, while 50 per cent of them in the automobile and construction and real estate sector feel the chances of revival appear gloomy in the future.

Participants opined that the effects of COVID-19 are likely to remain for 3-5 years and may impact the quality of credit in the books of banks, the general risk-taking ability of entrepreneurs, investments in capital markets and real estate, and the saving pattern of households.

''All these could have an impact on domestic financial stability,'' it added.