Chances of economic revival: The start-up and tech ecosystem

The Covid-19 pandemic has disrupted the Indian economy like never before. A near economic full stop that followed the outbreak left many businesses struggling or worse.

During the pandemic, the world’s economy is being reshaped very quickly, and Indian firms have to re-examine how they will thrive in a new kind of economy. Most successful firms are taking the initiative to come out stronger after the pandemic. When asked whether they were waiting for things to normalise before acting or proactively acting to emerge stronger from the epidemic, a few leading business people had this to say.

They also shared their views about the impact of the pandemic on the broader Indian economy.

Mr Rohan Raj Barua, Co-Founder, ExMyB

Post COVID – If we keep waiting for such a day to come, it will be a very long time indeed. We are witnessing life-changing events every day, and everything new our country does is becoming the new normal. Industries and businesses across the world are facing challenges, but they are tackling them and moving forward. The B2B services industry experienced an initial disruption too. But companies are innovating and creating with new models to account for today’s situation and as a result, continuing robust operations during Covid-19.

Consumers are thinking twice before purchasing anything. The B2B services industry can help businesses that are experiencing moderate demand. ExMyB assists enterprises to earn trust and be seen as authentic and transparent companies. Consumer’s mindsets are changing, which means companies will have to adapt their solutions accordingly. In this respect, B2B service platforms are already one step ahead.

From ExMyB’s perspective, we already have accurate data about service providers and vendors because that was part of building the company from the ground up. ExMyB believes in empowering buyers and enabling sellers, and this will help the country move forward!

The strength of businesses in India will ensure that these difficult times will pass and when the pandemic is halted there will be a resurgence in economic activity. The ExMyB portal will play a part in driving economic activity in India because so many businesses are registered on our portal. ExMyB is an ideal portal for businesses that need the support of reliable vendors. Every company registered on our portal is thoroughly vetted. At a time when many reliable business partners are reneging promises due to economic uncertainty, access to a portal where every vendor is guaranteed to be a reliable partner holds tremendous value for businesses.

Ms Diksha Deo, Founder & CEO, INCUBSENCE

The lockdown has saved many lives but at an economical cost. It has shocked the economy and paralysed small and medium enterprises for the next couple of months. The short term cash crunch, broken supply chains and worker shortages are some challenges faced by small business owners because such firms must conduct business every month to remain profitable.

However, a lot of opportunities will emerge post-covid-19 for businesses. The launch of Atma Nirbhar Bharat program by the Govt. of India will help the economy bounce back. Technology and electronics manufacturing will be the key drivers of this economic revival.

For example, INCUBSENCE designs, develops and sells contactless attendance and access control systems. In making these products, a lot of SMEs are involved. At INCUBSENCE, the design engineering team designs all the electronic products. Afterwards, employees in manufacturing units manufacture the products. The screws of the products come from another SME, while packaging boxes coming from a plant in Noida.

The delivery boys ensure raw material is procured and the finished product is shipped. Then, products reach resellers, and their employees sell the devices across India. Because so many are involved in the high growth electronics products industry, liquidity flows into the bank accounts of employees of SME’s, shipment partners and resellers. More than 40,000 to 50,000 employees get money to spend in the economy, and many SMEs get business that helps them remain profitable. This entire process helps the economy grow.

Thus INCUBSENCE will contribute to the economic revival of India. Also,

imagine as more start-ups and businesses are created and scale their activity they will create jobs and economic prosperity in India. I look forward to welcoming companies that deploy the Atma Nirbhar designed and Made in India products because such products will ensure that liquidity remains in India.

The government’s initiative to make India self-reliant comes at a time where there is immense resentment towards China. Most experts believe that had China acted more transparently, the pandemic would have been more manageable. The COVID-19 cloud has a silver lining. Many supply chains that started in China may now originate in India. The government understands global sentiments and is taking advantage of them by attempting to reshape global supply chains such that they originate from India. When more is manufactured in India, outflows of capital to countries like China will fall. There will be more capital in the hands of Indian consumers and firms which will translate to more economic activity in India. The beneficiary of the higher domestic action in India will be local businesses.

Mr Ankit Oberoi, CEO & Co-founder, AdPushup

The online media and publishing industry provides access to critical information to millions of people, a service that becomes even more important during times of crisis. A majority of media companies today depend on ad-supported models of monetization to fund their operations. Due to reduced consumer activity, brands and agencies are temporarily slashing their advertising budgets, which ultimately hurts the bottomline of media companies.

In addition, some brands are also blacklisting COVID-19 related keywords, making it harder for publishers to monetize news and informational content. However, the fundamentals of programmatic advertising remain strong. Before the pandemic, global spending on digital advertising has demonstrated a consistent year-on-year growth trend for over a decade.

If the external factors that are causing the current slump are controlled, a swift and full recovery is extremely likely. Moreover, as the market slowly re-opens and consumer activity picks up, most brands are expected to double down on their advertising and marketing initiatives to make up for lost time, positioning the media industry as an important vehicle for economic revival in the post-pandemic world.