Changing the picture of the Indian manufacturing sector from Covid-19
It is absolutely true that Covid-19 will change the way the world works. There would be fundamental changes in how people, businesses, and economies function. It is estimated that almost 85-90 % of businesses will struggle; some may even perish into oblivion. But as with economic adversities of the past, new industries will emerge bringing with it renewed hope of recovery. It is obvious that Banks and financial institutions will be under immense pressure as the fear of NPAs, insolvency and bankruptcies will eventually increase multifold to say the least. With the entire financial sector taking a jolt due to the pandemic, it is a no brainer to say that the manufacturing sector will suffer too.
Prior to the corona outbreak, manufacturing had emerged as one of the high growth sectors in India. With the government initiatives like ‘’Make in India’’, India was expected to become the fifth largest manufacturing country in the world by the end of year 2020. But now, this dream looks gloomy as India grapples with a rising incidence of the disease, visits to stores might dwindle due to a fear of being exposed to the virus in public spaces hence reducing the demand.
How Can indian Manufacturing Sector Benefit?
Become an alternative to china:- If India can prove to be a trusted supply chain partner, then it can rope in the companies and business analysis consulting firms leaving china making INDIA a factory for the world which can significantly reduce the unemployment level.
The stimulus package from the government might help:- Recently, the government of India has released a huge package to revive the Indian industries. If India manages to get the whole supply chain moving, and the economic package reaches the SMEs which generate half the employment, then it might bring a positive outcome out of the pandemic.
Gain foreign Investor’s Trust:- Expanding domestic capacity and capability by augmenting current ones, and adding fresh incentives and training can work wonders if done in a strategic way. These investments are likely to be modest in size and low in resource demands making it faster to operationalize. Medium-sized enterprises generate more employment per unit of investment, a crucial factor for India post-Covid-19 hence tis sector has to be strategically pushed forward to make it a trust building agent.
In totality, India needs to articulate a measurable roadmap to increase its current domestic value addition in the next five years. It has to focus more on the available resources within the national boundaries and curtail the dependency on imports.
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ADVAMPS is a business consultancy firm that partners with the clients to simplify, strengthen and transform their business. We deliver innovative business solutions through research-based and result-oriented approaches to ensure that our clients have hassle-free business operations in the entirety of corporate space
ADVAMPS provides comprehensive solution packages to the entire spectrum of business activities. We capitalize on the proven set of methodologies that are followed by specific business challenges. We believe, for the growth of any business, it is essential to establish a fruitful and long-lasting bond between the best of talents and management to reap organizational synergies. We build our team around your requirements, offering specialized services and solutions that meet the distinct needs of your business. We provide services to leading companies and large Indian firms across several industries of the Region, thus helping multiple businesses to prosper and excel in their respective genres. Whether it’s a domestic or an international organization, we churn out a scope of improvement for everyone.
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