This specific industry insight highlights the recent developments in the world and particularly Indian industrial development; and how they are going to help Indian economy in reaching its target. Several industrial developments, innovative practices, and approaches followed during 2020-22 have been explained in this industry insight. Also, developments related to managerial decisions in organizations is also discussed.

Introduction: By November, 2021 the world countries are looking for full-fledged recovery and getting back to normal their economies. Particularly Country like India was expecting double digit growth rate in Q4 2021-22. As we know India with a goal of $5 trillion economy by 2025; encountering the challenges as other world countries are encountering, took several measures and initiatives in that direction. Both the public, private sector and NGOs are part of the Indian journey for economic development.

Industrial Developments: Particularly the new economy industries are giving hope and have the potential to repeat the success what Indian IT industry has given to Indian Economy. These new economy industries which have potential to become cash cows, can contribute to Indian exports and can bring laurels to Indian industry include Indian electrical vehicle segment, particularly electrical 2-wheeler segment for Asian, African and European markets from Indian manufacturers; drones, mobile technologies (India has many players having 5G technology; these companies want to enter African market as well); growing private partners in defence technologies (potential exports from India in future); growing satellite manufacturing and launch services for foreign countries, commercializing space technologies, and Indian Space Research Organization thinking about manufacturing reusable launch vehicles, which has future potential for selling reusable launch vehicles from India.

Pharma and Chemical Industry: Growing Pharma exports from India; particularly Indian Pharma players with COVID vaccines and other drugs could segment their revenues from very diversified regions. Indian pharma manufacturers particularly since 2019; could establish themselves in the world Pharma industry and became one of the exporters to the world. Next, the chemical industry, particularly the recent past (since 2020), has given new avenues for Indian Chemical industry as well. With the growth in usage of Sanitizers, handwash liquids across the world, Indian Chemists are exporting these chemicals to world countries; also they got benefited in the recent past with the drastic growth in their market capitalizations.

Infrastructure Sector: Among the world countries, India is the only country which has grown 2% to 3% during 2020-21. The year 2020-21 is the challenge for the entire world as all the countries have experienced negative growth rates across the world. As on 2021, India is laying out 30Km highway per day with respect to infrastructure development. On Average with different highway corridors projects, a 1,000km per year highway is being laid out in India with more connectivity. Even Private partnerships are invited in railways as well in the country as is happening in developed nations. The diversity of services being provide in Indian railways is widely attracting tourism to the country.

Public Sector Enterprises: Some public sector enterprises are heading towards disinvestment, to increase accountability, ownership, equity and responsibility among stakeholders. This privatization move of public sector enterprises can increase the wealth of the nation in terms of growth in market capitalization, if the companies go for listing on stock exchanges. One more drawback of public sector enterprises is, the companies could not enjoy higher share prices in the stock market to compare with their private sector counterparts; which happened historically in India. That means the real worth of enterprise is getting less value in market because of its historical low share prices; this is happening despite having huge annual revenues in public sector enterprises. This is something to do with investor psychology.

Including MSMEs: Now let’s move on and see other industries, Oil industry takes couple of years to recover from the losses, because of the low people mobility during 2020-21. From government side, government is giving inceptives for electrical vehicle manufacturers, battery technology developers and MSMEs (Micro, Small and Medium Enterprises). Now MSMEs are also part of active exporters from India.

Retail Sector: There is unprecedented growth in retail sector in Rural Areas particularly during 2020-22. This is because of the work from home given in metro cities, people moving to rural areas, and safer places. One more thing is e-tailers such as Amazon, Flipkart, Snapdeal are reaching the unreachable areas in rural side as well. Children of farmers going abroad, availability of electronic gadgets in rural areas also because of ecommerce companies, awareness, skill level, learning, involvement, engagement is growing in rural India as well.

IT Industry and Education Sector: IT industry made use of the situation, and could see the significant growth rate with their remote working and work from home options. Particularly majority of educational institutions who were not online earlier, providing education online, is reaching remote areas well. This the changing the education industry dynamics across the world.

Urban Administration: Similarly, Municipal and Urban administration made use of the situation and upgraded some of the sewage systems and water connectivity systems in the cities; which were a major challenge earlier to do because of the locational, traffic congestions in busy areas.

Look At It as “Investment Period”: Overall, these two years, 2020-22 can be looked at as investment period/years for the country with respect to introduction of lot of innovations in technologies, business practices, business models, approaches, supply chain innovations and people practices for the industry. If these innovative practices and agile approaches can be carried out further even in the normal economic situation, reaching Indian $5 trillion target is possible; with improved production, consumption, and exports. Indian manufacturing industry productivity levels also will go up in long run, if these practices are being continued. These innovative practices are to be consolidated; some even may be repeatable across multiple industries; which can contribute to industrial productivity in turn economic growth.

Management Developments: With respect to management practices, decision making from data analytics, decision making from business intelligence, analytics based on data from historical data of data warehouse, evidence based decisions, using artificial intelligence in emerging areas; may not be in traditional areas; building knowledges bases, data centers across the world, building talent pools, and intellectual capital are the recent development industries are following in order to enhance their productivity, and reduce the customer turnaround and to enrich customer experience.

Thus, this specific 2020-22 is a learning and investment period for individuals, organizations, and industries across the world. After the turn around, the world can see improved global economy, with more learned industrial practices, and innovations.

That’s all from me, for now;

Hope you enjoyed reading it;

Best wishes,

Dr. Goparaju Purna Sudhakar, PhD, PMP



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