The global Chemical value chains are quite integrated with over 35 per cent of the Chemical GDP across the world is traded. The trade intensity steadily increased from 29 per cent to 38 per cent between 2002 and 2009. This period also saw China emerging as the largest trader and exporter of chemicals. The trade intensity has slightly declined from peak of 2009. With COVID-19 effects and negative sentiment towards sourcing from China, Primus Partners expects the trade intensity to drop.
Under NEMMP 2020 the government proposed to construct 23 expressways e quipped with electric vehicle compatible lane. Ministry of Road Transport And Highways (MORTH) proposes to develop additional 60,000 km of National Highways in the next five years. Despite COVID 19 the government was able to construct road length of 3,951 km during the first six months of this fiscal year with a construction pace of 21.60 Km/day.
The pandemic has accelerated the need and urgency for digitization. Government would increase focus on digital. EdTech companies and organizations focused on e-Health showed tremendous growth. The Government liberalized the regulatory regime for ‘Other Service Providers’ doing away with provisions like BGs, Static IPs, publication of network diagram, penal provisions etc. This would facilitate Work from home and Work from anywhere for the IT and BPO industry and can further accelerate growth. The pandemic led to lot of innovative service delivery models being adopted across multiple spheres. Numerous start-ups came up with innovative solutions driving service delivery.
The National Education Policy was finalized after some delay. Teachers and students have become more accustomed to remote / online / digital modes of learning, that have gained impetus like never before. We are on the brink of an alternative schooling model which may hinge heavily on offshoots of the digital, online and blended.
The Indian economy showed signs of recovery in the second quarter when the contraction narrowed from historic 23.9 per cent in Q1 to 7.5 per cent in Q2. Launch of the ‘Aatma Nirbhar Bharat Abhiyaan’ special economic package of 20 lakh crore (10 per cent of Indian GDP) came at the right time to revive economy. India has attracted more investments by easing administrative regulations for foreign investors and opening the economy for foreign companies in sectors such as defense, telecommunication and private security, among others.
Like the entire world, India was also affected due to the unprecedented pandemic. COVID-19 has disrupted the ways of living life for every section of society. It highlighted some of the deeply rooted issues of our healthcare system
India has inherent advantages in production of chemicals. There are many success stories in the specialty chemicals space with companies like Aarti, SRF, GFL, Galaxy, Meghmani, etc. developing both domestic & international markets. The Indian Specialty chemical need to be encouraged and be provided with a lower risk environment & this can result in substantial increase in business.
As per SIAM, in April 2020, the Indian auto industry reported a revenue loss of about INR 69,000 crores. In 2020, the overall auto unit sales was estimated to have declined by 30% as compared with 2019. While the passenger cars segment may witness some recovery in 2021, the luxury and super luxury segments will continue to face challenges.
Overall, 2020 was a year marked with a lot of uncertainty which may result in cautious investment flow in the coming 2-3 years also. The events in 2020 may arguably have made some significant dents in investment appetites of the industry and it would take a while for that to increase.
The Drone/Swarm strike on Saudi Arabian Oil fields, influence of the Turkish drones in Libya and Syria against the Russians, and the more recent Azerbaijan-Armenia Conflict has brought home the stark reality of such weapon systems to the Indian Armed Forces. The danger of low-cost Armed Drones and Swarm attacks will take its toll on mechanised forces and the combat support elements with it.
In September 2015, India adopted the 2030 Agenda during the United Nations Summit wherein, energy is closely connected with 74 per cent of the 169 targets related to the 17 Sustainable Development Goals (SDGs) which the country must achieve by 2030. Post this, India submitted its Nationally Determined Contributions (NDCs) for the period 2021–2030 to the United Nations Framework Convention on Climate Change (UNFCCC) and ever since the Government of India (GOI) has been strategizing ambitiously for improving the installed capacity of Renewable Energy sources when 75 per cent of it's our electricity is currently generated by coal-fired power plants.
India until 2019-2020 ranked as the fifth largest economy globally and aspires to become a 5 Trillion Dollar economy by 2025, thus making it third largest in the world. The unusual circumstances put forth by the novel Coronavirus, however, led the national economy to contract by almost 24% putting a temporary halt on the growth story. However, the true resilience of a nation lies in overcoming challenges with equal dexterity.