- PM Narendra Modi's ‘Make in India’ program placed India prominently on the world map as a manufacturing hub and India's Indian economy saw healthy trends
- The dominant Service sector India’s GDP has also attracted significant FDI flows, contributing significant export providing huge employment
- All the Reopening plans should largely depend on the Domestic Market rather than focusing on the international market
Before working on the Reopening strategy, it's worth recollecting some sector-wise statistics when Corona knocked at Indian households. In India the food processing industry has about 32 percent of the total food market, According to reports, it is the largest & ranked fifth in terms of domestic &; export and expected growth. It's around 8.80 and 8.3% for GVS (Gross Value Added) (GVA) and 13% of exports. It forms about 6% of industrial investment.
In 2018, India became the fourth largest auto market. Total sales increased by 8.3% I.e. by 3.99 million units. In 2018 seventh largest manufacturer of commercial vehicles. Thanks to the growing middle-class population, the 2 Wheelers market rocks the market in terms of volume owing. Of course, the rural markets boosted growth. Strong export thirst, Automobile exports saw 14.50% growth during 2019.
The dominant Service sector India’s GDP has also attracted significant FDI flows, contributing significant export providing huge employment. It covers a wide variety of activities in trade, hospitality, transport, logistics, NBFC, insurance, real estate, process outsourcing, education, healthcare services, and Infrastructure/construction.
In 2018, 31.45% of our employed population is working in the services sector & forms almost 55 to 60% of the Industries' graph of India according to the reports. Rather Automobile & Manufacturing Industries together with Agriculture Industries form 40% of the graph. With an air of uncertainty on the export front, it's imperative that the well being of the Service Industry is the key to the success of Manufacturing Industries.
Huge business groups should link industrialists, banks, and trading companies through reciprocal ownership of stock and long-standing exclusive relationships & individual companies should gain financial strength and connections that allow them to undercut foreign and domestic rivals. Their mission has to 'gain market share rather than accumulate short-term profits', and aggressively enter into high-growth sectors with long-term potential. Try & create a business environment of extreme competition, at least in the sectors that target international markets with sustained Domestic Market.
At least for one Fiscal year Industries' Single line agenda should be 'total quality control, lean production, and cross-functional product development'. Another important Sector that Major Industries should focus on immediately is the Education & Training Industry. In the global education industry, India is a key contributor. The education sector in India was estimated at US$ 91.7 billion in FY18 and is expected to reach US$ 101.1 billion in FY19.
This Sector has the capability to provide the Industries Well-groomed Technical Skill in the form of Trainees, Research associates, Brand ambassadors, etc.. under their close monitoring & handholding & ensuring safe ROI in terms of entrepreneurship, i.e., the idea of turning a solution into a possible business idea. It is this quality of turning a solution into innovation by the Young Brains available in Universities. All that the Business Community needs to do is 'Industry Institution Handshake' & Establish Incubation centers at the Institution in their Region. They have to consider this as Technical Responsibility and work in Tandem.
One should keep in mind that the total amount of Foreign Direct Investment (FDI) inflow from April 2000 to March 2019, the education sector in India was around US$ 2.47 billion, according to the reports of the Department for Promotion of Industry and Internal Trade (DPIIT).
Some Golden Handshakes –
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IIT Madras inked an agreement with ExxonMobil Research and Engineering Company (EMRE) for research on Energy and Biofuels in October 2019
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Earlier, Qatar sovereign fund pumped in an investment round of US$ 150 million in Byju's in June 2019.
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Interestingly in India, about 3,500 plus Startups are focusing on the education space attracting funding close to US$ 700 million in 2018.
Social Distancing has Implied that Institutions should think of the Virtual Learning Platform instead of Congregation. This opportunity will prove to be a win-win situation to acquire more interns from the Institutions who can still continue their academics in Virtual mode. This may lead to another set of audience i.e. Skilled workers without formal education may get a University Certification because of this association.
End of the Day, entrepreneurship seems to be the way to success in the present times. With countless podcasts, YouTube videos, self-help books filling up bookshelves.
