By the end of this decade, India is poised to become one of the largest manufacturing hubs in the world, overtaking several Asian and European countries in the process.
Currently, her population base of over 1.25 billion people, of which almost 65% is under the age of 45, is likely to become one of the major driving factors in this process.
- Basic current prices from the manufacturing sector increased at a 4.29% CAGR between FY 2012 and 2019, as according to the Annual National Income report published by the Government of India.
Fast-tracked investment proposals, improved policies, better availability of training and digital literacy have played a key role in this development.
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Moreover, a fast-evolving customer base has created a significant demand for goods and services, helping new entrepreneurs, small and medium scale enterprises tap into the market and capitalise on the growth.
- India has become the new investment hub for global establishments like Siemens, HTC, Boeing, etc. Cumulative FDI in the manufacturing sector has reached almost $91 billion between 2000 and 2019.
Organisations across the nation have been able to maintain their gross working capital effectively, upholding their production capacity and catering to evolving market demand with ease.
They are also adhering to the recent changes in the business market, improving their potential and growth opportunity by a substantial margin.
Recent changes in the business market
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The business sector of India has witnessed dramatic changes over the last few years. A connected infrastructure, availability and exposure to the World Wide Web have shaped this decade’s business market.
Let’s take a look at some of the recent changes that are likely to help businesses build their brand with ease.
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Advertising and online marketplace
Probably one of the largest changes the business sector witnessed is the proliferation of web-based services.
The internet completely revamped the advertising system; instead of expensive television-based ads, businesses have placed online campaigns (at a much lower expense) that have worked significantly better.
Businesses benefitted from this system significantly.
The ability to identify prospective sources of working capital as well as creative ways to raise funds for small businesses and utilise these to its fullest extent.
Demography and demand have driven the market extensively, and recent policy changes have made it even easier to secure financial advances in the form of loans.
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Customer-centric experience
A large team of experts around the world has recognised the trend of using rather than owning amongst customers. Businesses are cashing in on this trend to bring better revenue and exposure to the market. The trend of increasing sales of cheap, disposable items is visible in almost every sector in India.
Another emerging trend is the personalised services. Companies are offering tailor-made, on-demand products and amenities to customers to fulfil their unique requirements.
Global studies reveal that consumer services account for 40% to 50% of all types of purchases made, which reveals the changing dynamics of this sector.
While it’s easy to provide such services for companies with a high net working capital, many SMEs and MSMEs have also captured the market thanks to the easy availability of finance. Companies like Bajaj Finserv provide business loans to eligible applicants, which can be utilised to create the necessary infrastructure.
Bajaj Finserv also provides pre-approved offers to existing customers, simplifying the process of application and helping save time.
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Automation and safety
The implementation of machine learning, neural network, and more capable than ever computer systems have allowed businesses to reach and predict customer demand more efficiently than ever.
This has lead to a massive change in the business market, where companies are relying on AI systems to compute, design, and in some cases, even manufacture products on their behalf.
This progression has helped minimise the cost while maintaining a higher level of operational efficiency altogether.
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Security has also become a predominant theme in the changing market. Customers are willing to pay higher tariffs for secure services, instead of exploring cheaper systems that can put their privacy at risk.
These above-mentioned trends are bringing some of the largest changes in the business market, powered by better understanding and access to essential technology that every business needs. Understanding and implementing these advances can bring significant advantages when it comes to a business’s working can revenue within a short time.
