Covid-induced contraction in creative economy, income loss: Report

By Siddhi Jain New Delhi, Dec 22 (IANSlife) A new report on the impact of COVID-19 on the creative sector has found that 16 per cent of the creative sector is facing permanent closure now. MSMEs and the freelance workforce who cater to large companies have been worst hit, says the report launched on Tuesday, adding that 22 per cent of the sector, is forecast to lose more than three-fourths of annual income.
British Council, Federation of India Chambers of Commerce and Industry (FICCI) and the Art X Company partnered to record the impact of the global Covid-19 pandemic on the creative economy in India through ‘The Taking the Temperature Report’. Its second edition of the report; which provides a comparison of the situation in India since the outbreak of Covid-19, the consequent national lockdown (March-June) and the period following relaxation of the lockdown (July-October).
The report also found that 58 per cent of the creative industries workforce are women, deepening gender inequality of opportunity as a result of the short-term impact of the pandemic.
Solidarity between artists and audiences is to continue to create and connect remains, however, the depth of the short-term impact of Covid-19 on the creative economy globally and in India cannot be underestimated and looks extremely bleak, says the report.
About 90 per cent of the creative sector fears the long-term impact of social distancing on the creative economy. Assessing how long before green shoots can be seen, the report says that 60 per cent of the sector believes it will take 9 months to over a year for early signs of recovery for the creative economy.
Signalling that during the pandemic, the creative industries continue to face a very uncertain future, the report shows that the creative economy is contracting, organisations are closing permanently to avoid bankruptcy, and creative businesses are contending with increasingly difficult choices to cut staff and overheads to ensure they remain resilient.