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2021- The Game-Changing Year For India’s Growth

The Indian economy is well poised to lead the global economic resurgence, with the Indian manufacturing sector playing a pivotal role. We foresee 2021 to be a game changing year for the Indian economic growth.

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At the beginning of the year 2020, businesses and industry leaders waited in anticipation and positive presumption in terms of growth, however, the world got impacted with an unforeseen circumstance that not only halted the economic growth abruptly but spread the fear of unknown. Businesses across all verticals got affected by the COVID-19 spread, except for the manufacturing sector, which acted as a game-changer, presenting both opportunities and challenges. The pandemic outbreak sped up the adoption of innovative operating models, business processes and new digital technologies by several years in the sector. Numerous companies figured out how to react with phenomenal speed to the difficulties the pandemic introduced. Now is the time for organizations to focus on creating strategies that open new opportunities towards self-reliance and reflect the new realities of the industry.

Staying resilient

The new set of challenges the pandemic brought has made the industry and customer even smarter and vigilant about their choices. Several manufacturers were prompted to take a more critical look at how they drive innovation and deliver growth. As a result, the industry is showing a lot of resilience and realignment in their businesses to meet the changing customer needs. We believe that manufacturing keeps the wheels of the economy moving. In fact, we were one of the first few manufacturing companies to open our offices and factories whilst ensuring safety and well-being of all our stakeholders. This helped us to come out on top and meet the customers evolving demands well in time.

Localization is the key to growth

Pandemic outbreak while disrupting the economy globally, has given an icebreaker for the manufacturing industry to accelerate production in-house, to celebrate localization as the new normal. Driving the adoption of ‘Make in India’ and ‘Atmanirbhar Bharat’, setting up of supply chains within the boundaries of the nation, are now considered as the predominant growth factor. Not only it is the new buzz word but also the need of the hour. Industry needs to slow down on imports and component makers need to develop good alternatives to imports at reasonable costs. Considering how well the Indian market has seized the opportunity through the ongoing pace, the process of localization is moving swiftly underway already. For example, it is because of the strong capabilities of the components sector that the automotive manufacturing industry in India has been able to achieve localization levels of around 70 per cent till now.

The way ahead

Customer expectations are higher than ever. And, manufacturers are under intense pressure to deliver positive results despite increasing competition and economic uncertainty.

While the government has reacted with speed and established encouraging policies to provide a boost to the economy, more effort is needed to address the continued challenges and uneven recovery. Initiatives like PLI and voluntary scrappage policy will further nurture and boost the manufacturing industry, helping it become an integral part of the global supply chains. Positive economic greens shoots are clearly visible within the global and Indian economy. We are optimistic and confident that the Indian manufacturing sector will bounce back swiftly, on the back of better resource reallocation, redefined work processes, strategic investments, aggressive digitalization, and positive government policies. More significantly, the Indian economy is well poised to lead the global economic resurgence, with the Indian manufacturing sector playing a pivotal role. We foresee 2021 to be a game changing year for the Indian economic growth.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

Manish Bhatnagar

Managing Director, SKF India

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