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Tuesday, Aug 04, 2020 13:30 [IST]

Last Update: Tuesday, Aug 04, 2020 07:56 [IST]

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The Covid-2019 pandemic and the ensuing mayhem has left the global and Indian economy battered. The crisis has upended India Inc, but all may not be lost after all. In a report prepared by PwC India, a consultancy, India Inc is optimistic about economic revival despite near-term challenges on both demand and supply due to the on going pandemic. More than four-fifths of companies believe the pandemic has merely interrupted their business, not crushed it.
82% of companies surveyed say they expect to recover within a year. The report also says that while 73% of these firms see a fall in revenues this fiscal year, only 15% expect the decline to last longer. But markets will recover by June next year only if companies focus on crisis management, operational efficiency and innovation.
PwC India surveyed 225 CXOs across industries between June 17 and July 10 to assess the impact of Covid-19, the challenges it poses, new paradigms and interventions being considered by business leaders. Nearly 80 per cent of the 225 respondents to its ‘Value Conservation to Value Creation Survey’, which explores Corporate India’s journey through the Covid-19 crisis, expect their businesses to recover by June 2021, with early signs expected to be visible from September 2020. They attribute this resilience to operational flexibility, robust crisis management and process/product innovation. For many, this is a result of work done in the pre-Covid era.
The report suggests that infrastructure, real estate, industrials, retail, hospitality and media & entertainment suffered significant revenue decline due to the crisis. Collapse in demand, supply chain disruptions and liquidity constraints were the top reasons for decline. Sectors like IT, healthcare, pharma, telecom, utilities and consumer essentials were somewhat resilient. Crisis management and agility to adapt to the changing market were the key for resilience, it added.
Such optimism is impressive, even if some respondents are just putting up a brave face. As of now, our corporate sector seems to be in cost-crushing mode, with layoffs, structural rejigs and division closures still the order of the day. In operational terms, the worst of the pandemic may now be behind us. Factories have been reopening and capacity utilization is seen to be on an incline. Yet, the ability to produce goods and services would mean little without a demand revival, signs of which remain weak.
Coronavirus appears to have lost neither its virulence nor its capacity to defy predictions. It seems to relish all seasons, no matter how hot or cold, and may be able to hang around in the air for hours on end, ready to strike. Unless a vaccine is found quickly, infections could continue unabated. Corona cases have crossed 1.5 million in the country, and daily infections have begun to bob above the 50,000 mark. Business as usual is thus nowhere on the horizon. Even if vaccinations begin by the end of 2020, it could take all of 2021 for everyone in the country to get a protective jab—and that too, only if plans for such a scheme are chalked out now.

Sikkim at a Glance

  • Area: 7096 Sq Kms
  • Capital: Gangtok
  • Altitude: 5,840 ft
  • Population: 6.10 Lakhs
  • Topography: Hilly terrain elevation from 600 to over 28,509 ft above sea level
  • Climate:
  • Summer: Min- 13°C - Max 21°C
  • Winter: Min- 0.48°C - Max 13°C
  • Rainfall: 325 cms per annum
  • Language Spoken: Nepali, Bhutia, Lepcha, Tibetan, English, Hindi