To revive the economy that’s almost shut down due to COVID 19, the Government of India came out with a slew of measures, announcing an INR 20 Lakh Crore package, which is about 10% of our GDP.
The economy was strained. The steel industry in particular was hugely affected due to the shut down of the industries, with the demand for steel contracting by a whopping 91% y-o-y in April 2020. Urgent steps in the right direction were the need of the hour.
Prior to the announcement of the package, PM Narendra Modi made a very important point on how this COVID 19 pandemic can be converted into an opportunity of growth for the Indian economy. We’ve seen local companies in countries such as China grow big really fast. Though the Indian business structure and the government work differently, under a democratic setup, we feel we can see this happen in India too, with a collective effort from all.
A lot of the MSMEs often find it hard to compete with foreign companies with huge funding and backgrounds, who can drive their prices down. It’s this cut throat competition that has slowed down the growth of the Indian companies.
With the government itself taking the initiative by stressing on the need for “Atmanirbharta”, and leading the country in giving more importance to the Indian companies by banning foreign tenders on government contracts which are worth less than INR 200 Crores, it’s a great time for the Indian companies to thrive.
Volta Green Structures has worked on various government projects through sub contracts, across India. The tender process is very competitive and often puts a lot of strain on the smaller companies. The raw materials for these projects are also often availed from overseas countries, to reduce the cost of procurement. A lot of smaller companies hence, couldn’t supply to larger firms.
Government tenders are a big opportunity for any company to grow bigger. By ensuring that Indian firms are preferred for all such projects, the government has in short, evened the playing field and given a lifeline to the Indian companies and suppliers. The market has just become bigger, by taking global companies our of competition.
Localisation of supply chains also has more benefits. The steel companies in India, for example, have been running their plants albeit at a lesser capacity, even though the demand has fallen. But in view of such measures and the stress on consuming Indian products, the medium to long term prospects look brighter for the industry, helping boost the demand.
Another thoughtful and important step is to adjust the definition of MSMEs to include more companies under this umbrella, who can now avail the plethora of benefits from the package.
MSMEs play a vital role in the Indian economy and it is essential to help these companies to not just tide over the present days but also to scale up higher. We’re looking at a pool of opportunity when companies such as Apple or Mercedes talk about shifting their manufacturing facilities to India from China.
Volta Green Structures has always aimed at building a sustainable future for India with steel, to innovate and use the resources at hand to solve problems. To help India fight COVID 19 pandemic, we’ve designed architectural models for quarantine facilities, testing labs and sample collection centres, using Modular Steel Construction, that can be factory finished and installed anywhere across India, in the quickest possible time.
Keeping the changed business environment amidst the fight against COVID 19, Volta Green Structures has also developed various accommodation facilities that enable companies, factories and institutions to provide their employees with accommodation inside the factory premises itself.
We’ve been looking to collaborate with different Governments and steel companies to help India in this fight against COVID 19.
The measures announced by the government in the INR 20 Lakh Crore package, would not only help us in delivering on these projects, but also the Indian suppliers from whom we would procure the raw materials.
These steps are a good start at not just reviving the Indian economy but to also restructure and grow it further, by making a self reliant push through Atmanirbharta. It also helps in the #MakeInIndia initiative and would encourage more businesses to step in and make more goods in our country itself.
The government, with this announcement, has taken the lead. It is on us to follow the directive and help make our economy bigger. Let’s make India great.
