How is the covid19 pandemic changing the picture of the Indian manufacturing sector
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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