Collaborative approach of Industry and government, the need of the hour

Almost all business leaders expected that the National Budget 2021 in some way or the other will shell out measures in the form of much-needed catalysts for boosting demand, curbing inflation and thereby reviving the economy. What policies did the Budget 2021 entail to ensure financial recovery and spur economic growth in your sector?

It is encouraging to see the government focus on strengthening pharma and healthcare sector. Well, for a country of 1.3 billion population insulating all the people against the pandemic is a gigantic task. Allocation of sizeable of fund for vaccines against covid19 is not a healthcare need but the country’s economic need too. This goes directly or indirectly to various segments across supply chain apart from procuring vaccines itself say allied industries like syringes, packaging, cold chain management, logistics and so on.

While I agree that the increase of 137 per cent increase in pharma/healthcare sector is sizeable, much needed to be done considering the current pandemic situation and dependence of Indian pharma industry for APIs, important ingredients, medical devices and certain packaging material too. Also focus on bio pharmaceuticals, R&D, and manufacturing would have had a major contribution. We need to study the fine print though and wait for plan outlay and implementation.

Going into the next decade, smaller cities and towns are expected to be key consumption drivers. Do you agree with this outlook and if yes then what policy changes should the government make to ensure that organisations can keep rural India at the center of its growth story?

It is without doubt the tier two cities and major villages in rural India will be the growth epicenters especially under post pandemic situations. We are already witnessing the digital evolution in all the sectors and working remotely has become a norm in many cases. The enhanced capital expenditure especially in infrastructure and strategic moves in the agriculture sector will accelerate the overall growth while enabling more jobs. Rural development be it in industry or infrastructure will be the key growth driver. Holistic approach in utilizing the available resources is still a mirage. Industry clusters with international norms, satellite townships development is a far cry. Economic indices will have sustained raise only when we address these in full pledged manner.

The government has been advocating ‘Ease of Doing Business,’ making India ‘AtmaNirbhar’ by promoting ‘Make in India’ initiatives aggressively. What steps should the government think of in order to drive consumption and improve consumer demand?

Are you aware? The startup ecosystem in India is third largest after US and China. Frankly speaking many rural businesses have raised to the occasion during the pandemic stage without much encouragement. The government need to prioritize the measures, focus on strengthening the domestic manufacturing ecosystem in the key sectors. Needless to say, optimum utilization of available resources is the key. Further, we say a lot about skill development, but adequate measures are yet to be taken in this sphere.

Sustainable packaging is key to resurging growth for a developing nation such as India. How can corporates and the government work together to provide an opportunity for sustainability to grow in the country?

The climate crisis is intensifying, and the impact in general is visible natural ecosystems. Littering and undisciplined disposal of waste, especially used packaging has become a major threat on resources which we require to exist. Well, as individuals, many of us can make a difference by changing our habits. However, large scale change is required and a herculean effort is required to curb this menace to a great extent. Collaborative approach of Industry and government is the only solution. While it is not practically possible every time, companies are coming forward to implement eco-friendly and sustainable packaging i.e., using compostable, recycled or biodegradable materials. Sustainable packaging actually enhances a brand’s image in addition to meeting environmental goals. Linear supply chain mode which has been a traditional operating model since long changed. What is required at this juncture is a collaborative and innovative approach to address this challenge. It involves not only industry and government but research institutes, universities and key stakeholders in the supply chain gamut.

What kind of economic trends do you foresee for FY22 spread over quarters?

Consumer demands have evolved since long, we witnessed unpredictable disruption in several sectors. While the world packaging market is expected to touch the magic figure of 1trillion USD in two to three years which is currently around 900 billion USD, Indian packaging industry continues to witness a double-digit growth (world average 2 to 3%). Growth in E commerce in India is the largest in the world. In the next two quarters we are going to witness a major spur in food and pharmaceutical sectors and then it will take a consolidation path. We can predict significant growth in other sectors say Electrical, Electronics, automobile and others with infrastructure projects may start realise and consumers will start investing more in housing and other needs.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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