In a recent discussion with our industry friends about India & its future (also of its exhibition industry), i gave my two cents of contribution to that discussion by mentioning that exhibition industry is the reflection of economic activity of any country. We may build as many venues but business will only come from demand, which is a resultant of trade activities. Today, India is geared up with its state of the art, purpose-built venue capacity across major metros. India is the fastest growing major market in Asia (in exhibitions). On economic front, there are numerous positives which are further fuelled by English friendly culture & favourable demographics (India has more than 65% of its population below the age of 35).
A glimpse of India’s economic projection from now on: In a recent discussion with our industry friends about India & its future (also of its exhibition industry), i gave my two cents of contribution to that discussion by mentioning that exhibition industry is the reflection of economic activity of any country. We may build as many venues but business will only come from demand, which is a resultant of trade activities. Today, India is geared up with its state of the art, purpose-built venue capacity across major metros. India is the fastest growing major market in Asia (in exhibitions). On economic front, there are numerous positives which are further fuelled by English friendly culture & favourable demographics (India has more than 65% of its population below the age of 35). A glimpse of India’s economic projection from now on:
On 12 May, 2020, The Prime Minister announced an overall economic package worth ₹20 lakh crore (US$280 billion), 10% of India’s GDP, with emphasis on India as a self-reliant nation. In the second week of May, companies started preparations for restarting operations. Some companies opened offices with the maximum permitted strength of 33%. The beginning of June saw companies further reopen and making plans to reopen. A study by Elara Securities Inc. found that five Indian states, Kerala, Punjab, Tamil Nadu, Haryana and Karnataka, are contributing 27% to India’s GDP as India emerges from a total lockdown. By mid-June, unemployment levels were back to pre-lockdown levels. Online sales reached pre-covid level sales by June end. Hindustan Unilever registered pre-covid levels in sales in late June. On 2 July 2020, The Times of India reported that a number of economic indicators such as the manufacturers purchasing managers’ index, goods movement, GST collections, electricity usage and rail freight transport showed significant improvement as compared to previous months.
Dependent on made-in-China goods and raw materials, nations the world over are today rethinking trade ties with the China. Common sense dictates the world look at alternate hubs of manufacturing and sourcing. It is here that nations like India can step up to the challenge. Global companies that thrived on the efficiency and low costs of Chinese production are likely to move their base in the aftermath of Covid-19. South Korean and Japanese firms have evinced interest in migrating towards production-conducive economies like India, Vietnam and Thailand. The Atmanirbhar Bharat scheme could give the much-needed fillip to the country’s disrupted business operations by promoting Make in India manufacturing, encourage substitution of imports of low-technology goods from other countries, particularly China, and encourage local produce at lower prices. The Rs 20-lakh-crore stimulus package announced by the government focuses on tax breaks for small businesses, as well as incentives for domestic manufacturing. The Rs 3-lakh-crore collateral-free assistance handed out to MSMEs will help crank up their operations. This move could help recover India’s factory output to pre-covid levels.
India’s GDP will grow at 1.9% in FY2021, making it the only other major economy beside China estimated to grow. As per the US-India Strategic and Partnership Forum, 200 American corporations had already sought to move their manufacturing bases from China to India in mid-2019. This could accelerate post-Covid. Around 100 US firms may shift base to Uttar Pradesh from China, among them Mastercard. UPS and Fredix showed interest to invest in Jewar airport by developing logistic centres. Boston Scientific has plans to set up a medical equipment plant. Casa Everz Gmbh, the owner of Germany-based healthy footwear brand Von Wellx, will be shifting its entire shoe production of over three million pairs annually in China to India with an initial investment of Rs 110 crore, as per a top official of the company’s licensee Iatric Industries. A new manufacturing unit will be set up in Uttar Pradesh through a collaboration with Iatric Industries as part of an understanding with the state government. India, the Golden Sparrow; is the land of billion opportunities! Stay Safe & Take Care.
