Impact of COVID 19 on the Manufacturing Sector and possible measures of sustainability.
As a major part of the Indian economy, the manufacturing sector accounts for nearly 16% of the GDP.
India witnessed an FDI inflow of $286 billion in a five-year span of 2014 to 2019. However, due to the pandemic that has dawned upon the globe the FDI inflows in India have witnessed a sharp decline.
It is not news that due to the COVID-19 outbreak, many workers have been let go and many others are on the verge of it. Many factories which fall under the non-essential category of commodities are shut down resulting in a major rise in unemployment.
To be brutally honest, India is currently looking at a loss of $31 billion approximately in value-added for the manufacturing sector during the year 2021.
Having said that, it is also true that this loss is not normal and very much controllable. Being a country with excess resources, the silver lining is that we are looking at quite a few opportunities which can not only avoid the loss but also result in the rapid growth of our economy.
Global manufacturers have initiated talks with Indian firms to explore the possibility of shifting a part of their supply chains from China as they seek to diversify their operations following the COVID-19 outbreak.
Steps for sustainability and growth in the current market
1. The Team-Work Mantra
Alone we can do so little; together we can do so much.
The best way to wade through these trying times is to stick together. A teamwork environment promotes an atmosphere that fosters friendship and loyalty. Adopt the team-work mantra and watch yourself grow through it all!
2. Calmer Workspace. Better Productivity.
Statistics have proven that companies have flourished and have an increased level of productivity due to calmer workspaces. An employee working out of home is less likely to spend time in social interactions and thus, more likely to exhibit better work productivity.
3. It’s just a bad day, not a bad life.
From tracking expenses against the revenue status and checking the feasibility of the business model to planning policies for a foreseeable future and being patient in securing investments, an IT company or any business for that matter has a wider scope of growth even through this lockdown.
Currently, your stakeholders could be worried or scared due to the prevailing pandemic which is why communicating with them and staying transparent will help you stay in business.
4. Save more than you spend. (Sowing profits back into businesses)
In a time like this, it is important to understand that your business needs a few more pillars of support. Whatever profits are generated during this period, please try and re-invest it in your business.
5. Assurance of a better future for the employees.
The HR is currently on the frontline of the lockdown. Creating a war-room scenario and brainstorming with all the employees about the amount of work done yesterday, the amount of work pending and the work you may be looking at in the near future will help you perform better as an organisation.
Another meth0od that the companies can adopt is job rotation. Instead of making one person work for 8 hours, you could consider making two work for 4 hours each. As a result, instead of one person getting no money, you will be able to give two people “some” money. Also, this way, not only are you lightening the burden of your employees but retaining the employment rate and thus helping the economy grow through a trying time like this.
There are times when you succeed and times you don’t. However, this is a time to rethink your organisational functions and maybe you could adopt a few strategies that Lockdown has thrown light upon. Statistics have proven that 75% of the employees exhibit more productivity with Wednesdays being half days in the organisation. Anything of this sort would only take you towards a brighter tomorrow.
Make the most of this Lockdown and keep growing.
All the best.
