Turning point for Indian Economy after COVID-19

The recent COVID-19 pandemic has proved to be a turning point for the Indian businesses. It has changed the way people act and perceive things. We are experiencing a new normal. This has impacted the economies heavily. Many businesses have experienced negative results. But some industries will observe new trends shaping up for the businesses with some help of the Make in India project.

 

Pharmaceutical Industry

Globally, India is the largest exporter of generic drugs. India exported almost eleven billion U.S. dollars pharmaceuticals.

Under the Make in India project, the government wants to end dependency on China and boost manufacturing of API raw materials for Pharma Industries. Indian generic drugs will be a major product for the US and Europe as around $40 billion of drugs in the US and $25 billion of drugs in Europe are going off-patent in the coming years.

The contract manufacturing of drugs can be another trend for existing Pharma firms, as India is a developing country, the cost of production and labor also reduces by 10%, compared to the other countries.

With around 26 million births and around 10,00,000 new cancer patients per year in India and less number of stem cell banking, India can be new platforms for stem cell banking.

 

Leather Industry

India is the 5th largest leather producer with nearly 1.4 billion square feet per year in the world. Indian leather industry exports at 41% of total exports having leather footwear. China, Brazil and Italy are the largest producers of leather in the world. With covid-19 India has the opportunity and power to be a top producer. But India imports a leather process chemical Sodium Sulphide from China. This is another opportunity for Indian entrepreneurs to develop the leather process chemical so that India can be on top of the leather exporter. Also, India has capacity issues as major leather finished goods are being made and sold in India. So if new entrepreneurs will come to the industry capacity will be increased and export will be more.

 

Toy Industry

After lockdown people in India will be more conscious about their spending and may not spend much on items like toys, the Indian toy manufacturer can export the products and earn foreign currency. The market driver for Indian toy industry is young and cheap labor. India is the 5th largest automotive manufacturer in the world. These companies can tap into toy car manufacturing.

 

Textile Industry

Textile sector will benefit Indian exports but in the long term. As India highly depends on China for textile raw materials, the Indian firms require finding alternative or making the raw materials in India and then the India textiles will be in high demand in the world.

 

Steel Industry

The second largest producer, the Indian steel industry is facing weak domestic demand and has enough capacities to increase export.

 

Ceramic Tiles Industry

The biggest exporter of ceramic products in the world is China. Majorly, China exports floor tiles in Europe, the US and Africa. The Indian business can turn the table with innovative style, design, shape, color and size.

 

Agriculture Industry

China exports potato chips, garlic and ginger into foreign markets. India can export this highest exported Chinese agriculture to the world being the second-largest producer of potato.

 

The prominent sectors where all sizes of companies in India can increase their business or start a new one by adopting new normal and cleverly vary their operations.