New Delhi/Mumbai, May 27 (IANS) The global economy has suffered a devastating blow courtesy the Covid-19 pandemic. Although statistics show that some countries are worse hit by the virus, all nations have been affected economically.
It is quite a rarity to still be making profits despite the pandemic. One investor that seems to be rising above the challenges is Latvian-born James Richman -- known for his profitable major investments in Asia and exciting companies such as 3D-printed technologies.
Across the globe, governments are scrambling to stimulate their economic machinery. Several different packages have been implemented by various countries with some gaining public approval. However, which countries are poised to bounce back economically? There are some, including James Richman, who believe that India is on its way to achieving a comeback.
Here are some of the reasons why.
India''s a strong economy:
India is considered as a developing country with huge potential. This is true because of a multitude of reasons. One is its enormous population. India is home to a population of 1.3 billion. This factor helps to boost their nominal GDP which is ranked fifth globally.
The number of people is also related to the country''s purchasing power parity (PPP) which is currently at third worldwide. It has shown a steady increase in GDP of around 6-7 per cent since the turn of the century.
Robust and young population:
Another factor that puts India in a good position to bounce back post-COVID-19 is its favorable demographics. A huge portion of India''s 1.3 billion people is under 40-years-old. First, we can relate this factor with the population''s resiliency to the virus itself. Experts say that SARS-COV 2 is most potent when infecting people above 65-years-old. This may explain India''s very low COVID-19 related deaths in proportion to its population and people infected. Also, a younger population means a wider chunk of people that are exposed to technology.
Not to be offensive to the elderly, but people under 40-years-old are more exposed to technological advances because it has been integrated into their education, communication, and daily lives.
India''s technology development:
The South Asian country''s information technology industry is massive. It boasts of a $180 billion budget and employs over 4 million people. This is paired with its telecommunications industry which is second in the world in terms of mobile phones, smartphones, and internet users.
Their power in technology drives several other sectors. These include the pharmaceutical industry which supplies a multitude of countries, including the US.
A rising pharmaceutical power:
For the past several years, India has been rising as a leader in producing pharmaceuticals globally. Their generics markets are rapidly growing and are already supplying 20 per cent of the global generic drug exports.
The onslaught of COVID-19 has seen India restrict its supply in generic drugs which evidenced other countries'' reliance. Factors such as inexpensive labour costs, robust government support, and lower production costs have made India a very important player in global pharmaceuticals.
Handling of Covid-19 cases:
In India, the handling of the COVID-19 pandemic can be described as advanced. It was one of the first countries that imposed a lockdown. Also, it is reported to be one of the most strictly imposed lockdowns in the world. Aside from this, India has been able to develop its indigenous coronavirus testing kit courtesy of Minal Bhonsale. She was the virologist who headed the project at MyLab Discovery Solutions.
The unique thing about India''s approach in handling the pandemic is that its population has rediscovered hope, goodness, and love. There have been numerous accounts of volunteer citizens picking up groceries and essentials for people with daily wage jobs. It is amazing how citizens have responded to the call and have not solely relied on government dole-outs. These very positive attitudes show signs of an imminent bounce back.
Sectors that are bound to bounce back:
Experts predict that India''s economy will hit big strides, but not all at once. Some sectors are more inclined to a quicker rise than others. Economists see a jumpstart in the essentials sector. The pent-up demand caused by the lockdown will surely raise the amount of spending.
This, coupled with government stimulus packages, will support the essential goods to spring back to life immediately. Being a global leader in pharmaceuticals, India will be capitalizing on this sector. The government has shored upon its supplies and has opened up more access to investments in pharmaceutical production.
The Indian leadership is aiming to bolster the supply for raw materials and strives to make the country more self-reliant.
It is somewhat a different story with other sectors that involve the behaviour of the consumers. Industries like tourism, travel, and entertainment. These sectors are bound to take more time to restart than others. Ultimately, the availability of a vaccine would aid these sectors.
Supporting India''s recovery:
The situation of India can be taken both ways by any observer. However, finance and economic experts such as investor James Richman, are eager to see the effects of their policies that balance "lives and livelihood". Richman is no stranger to this region as he had already pumped investments in multi-million fintech and socially impactful projects in the county since 2018. Several sources reveal these investments have been crucial during the pandemic.
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: IANS