Financial prudence and cost factor emerge as survival mantras for industry

Business survival instincts have kicked in since the pandemic hit us inthe first quarter (Q1) of 2020, reinforcing Darwin's 'survival of the fittest' theory. Organisations that were only looking at topline growth prior to Covid-19 have hit severe roadblocks and now financial prudence and cost focus have emerged as the survival mantras.

As such, the corporate services sector is expecting a strong rebound due to factors including impending demand after a subdued 2020 and several State-led stimulus packages. The financial sector too has been at the centre of activity given the massive shift in savings and investment patterns and movement of funds to market due to the increase in savings.

The volume of oil and gas consumption in 2021 is estimated to bounce back to 2019 levels. The consumption in 2020 witnessed a slump of 10 per cent and 2021 will recover by 12 per cent, displaying a V-shaped recovery.

Thus, India in 2021 is likely to consume 265 million tonnes of oil and gas reflecting the V-shaped recovery on year-to-year basis. Demand contraction experienced in 2020 will be regained in 2021. Since product-wise consumption volume will be maintained at the level of 2019, there will not be any shortfall in downstream operating capacity.

One Indian sector that is showing substantial promise is one that has been growing by leaps and bounds for years, namely the country's tech industry. The quiet, steady, but surely increasing impact of Indian hi-tech has been a discussion among global market analysts for quite a while now. The growth of India's influence in the sector has become two-fold. For one, India has become an important resource pool and base of operations for India.

A recent report showed over twenty-five percent of multinational corporations now, base their engineering, research, and development, or shared services centres in India. According to the report published by India based research firms, many of these centres have become the second headquarters for these companies. The briefs also listed twenty-five additional global conglomerates planning to open facilities in India next year.

A report by KPMG highlights a few key aspects, which retailers should consider post the Covid-19 scenario for better performance in this new reality. These include increasing impetus on localization, Phygital, and using digital technologies to the maximum. Retailers and consumer brands should keep these strategies in mind as 2021 kicks off.