The year 2020 has been difficult for most sectors, and the COVID situation has uncovered and exacerbated the prevailing susceptibilities in the Indian economy, coupled with the philanthropic concerns and subdued strategy answers. India has become a hotspot for the COVID-19 pandemic and the cases are on the rise and if the ever-increasing trend continues, India will soon surpass the US.
India faced a lockdown from March 24, 2020, to May 31, 2020, which is known as the strongest lockdown globally. Except for the essentials services and activities, India’s $2.9 trillion economies were in a blackout situation, which led to the economic activity facing a widespread standstill. While the businesses continue to figure out the current pandemic, different opportunities are increasing in various industries and a few of these industries are experiencing high growth rates.
According to the sanctioned statistics released by the Ministry of Statistics and Programme Implementation, the Indian economy tapered by 23.9% in the April-June quarter, of the Fiscal Year 2020. However, this does not mean that the Indian economy cannot survive this crisis and overcome it.
There have been a few instances, which predict that the Indian economy is on the verge of improving. It has been stated by an expert that even after the adversarial effects of the COVID pandemic on the Indian economy, organizations in India have shown huge elasticity and provided a mature view of real talent. There are different sectors, which have seen a spike in the demands for their goods and services in the second half of 2020.
The Automobile Sector:
The Automobile Sector, during the lockdown, faced huge losses, as there was no demand for automobiles. This sector had been deteriorating for the past several quarters, but it has boomed back to
business with different companies back to producing automobiles, at a larger rate. Mahindra & Mahindra is one such example that received a massive booking for its latest SUV, Mahindra Thar.
It has been revealed by the company that it received more than 20,000 bookings for this SUV, within a month of its launch.
Mahindra & Mahindra has said that the waiting period for this model has extended up to seven months, which is an unmatched growth in the Indian automobile sector as paralleled to its history.
Mahindra & Mahindra is not the only company that has seen growth, but Maruti Suzuki, Hyundai Motors, and Mercedes Benz, all have documented double-digit progress over the prior year’s
figures, when associated during the nine-day Navratri festival, in October 2020.
The Agricultural Sector:
The Agricultural Sector, although it grew in both the quarters of this year, rose by 3.4% in the second quarter. As per the current prices, the Gross Value Added (GVA) for the agricultural sector
grew by 7.7%, which deciphered into a price rise of about 4.3% that is better than the 2.3% rise, enumerated in the first quarter of 2020-21.
There have been different mergers and acquisitions firms in India, and companies have been taking advantage of using both offensive and defensive mergers and acquisition strategies to increase
their growth and recovery process after the COVID pandemic.
The Managing Director (MD) of State Bank of India, recently said that things were not so bad, and according to the numbers of the current quarter, the double-digit fall in the Financial Year 2021
may not be visible. He further added that it would have an advantageous outcome on the credit side and that, this credit will be seen in the automobile sector, housing sector, and personal
loans.
Most economists have delivered their forecasts for the Indian economy. A research has recently anticipated the GDP to decline by 8.3% in the complete financial year, as compared to the 9.5% fall,
as predicted earlier. ICRA now expects the GDP to fall between 7 to 9% in the Financial Year 2021, as per the earlier estimates of 11%.
Consumer Durables:
Along with the agricultural and manufacturing sectors, consumer durables have come back to business. The industry professionals have said that there is an augmented demand for smartphones,
dishwashers, washing machines, TVs, air conditioners, refrigerators, etc. Just as the automobile sector has amplified its production capability, so have companies such as LG, Samsung, Sony,
Panasonic, etc. to meet the demands of the consumers.
The Service Sector:
The service sector, which sums for roughly 60% of the country’s GDP, extended in the second quarter in October, which was the first time in eight months that the sector saw a growth. It can be
seen that the amalgamated PMI, which is comprehensive of both manufacturing and services, rose to 50.8, which is the highest recorded level since January 2012. The utility sector, along with
electricity, gas, and water supply are known to have increased by 4.4% in the second quarter of 2020.
The Stock Market:
Though the government expenditure fell by 38% in the second quarter of the current Financial Year, contrary to a rise of 40% in the first quarter, the economy only tapered 7.5% during
July-September. In the stock market, ICICI Securities has said that the Nifty remunerations would grow at a rate of 19.4%, which will be compounded yearly over the FY 2020-2022.
HDFC Securities has said that it has monitored a strident pullback in the markets and Nifty assessments back to 18 times in Financial Year 2022. It further says that the market will bring solid
proof of a severe Financial Year 2022 retributions ricochet that is built-in.
However, according to an expert, the future of the Indian economy is indeterminate, due to huge interference, but it will become a profitable venture for the disruptor. The expert also said that
the long-term development route would motivate the stock market.
Textile Industry:
Across the world, governments have declared record of financial aid packages which are worth trillions. It is also certain that closing stores and factories across countries will not help the
governments in a positive way. This will cost the Indian textile and apparel industry in a very short time. To overcome this situation, the government should set up new factory/factories in
India, to provide more employment opportunities, and since the Textile Industry in India has employed millions of Indians since Independence, it will become a source of income for the government.
Even after all the green shoots of development, it should be kept in mind that the Indian economy might still be amid a deep retrenchment. However, most experts have said that the worst is behind and the Indian economy may have saved itself from the most awful situations.
Article by :- Tecnova ( Leading Business Consultant in India )
Write a comment