- India’s manufacturing sector is bound take a hit due to the coronavirus (COVID-19) pandemic, with every stakeholder (from top management to contractual labor) on the brunt end
- Consumer demand will further have an impact, as the sector will attempt to pick up production post the lockdown and attempt to stabilize and sustain via Government policies and relief measures
- While there have been relief measures in terms of tax and compliance, financial relief is still desired by the industry as a whole to help the industry
- Investing numbers in the manufacturing ecosystem might be affected, but the investor confidence might just retain owed to India’s business conducive manufacturing ecosystem
The impact of the coronavirus pandemic on the global economy can’t be ignored. And with India in the picture where human capital continues to be a major stakeholder in the manufacturing sector, the impact is bound to be tenfold.
While it is a common perception that small companies will be hit, the big companies in sectors such as automotive, that engage a large workforce at the shop-floor, are also expected to take the heat because of operation s being downsized.
As it stands, the Government is trying to do its bit to help companies navigate through these challenges, yet a lot more is desired on multiple fronts.
To gain insight into how the manufacturing sector in India will be impacted and how companies in the sector can look to stabilize post the pandemic, we spoke to Shrey Aggarwal, who currently leads our Corporate Tax and tax Litigation Team as a Senior Manager.
Our discussion with Shrey has been encapsulated in a podcast, which you can listen to here:
Shrey shares his insights on the current situation of the manufacturing ecosystem in India, and analyzes areas wherein the Government can intervene to stabilize the sector not just via knee-jerk measures, but via financial relief as well as policy changes for the entire ecosystem.
Interestingly, he maintains that the investor confidence in India will continue to remain strong; and maybe even increase after the pandemic, as India’s position of an emerging economy with a potential to become a manufacturing hub continues from strength to strength, agnostic to the current situation.
Why does he say so? Listen to the podcast and find out!
For those who wish to listen to the podcast on YouTube, here’s the link for you:
Do listen and share your thoughts with us in the comments!