About the author: Until last year I have been working with Businesses in India for several years. And two weeks ago, I traveled back to Bangalore and India again and Centigo’s subsidiary to understand the Corona situation in the Indian society and how it has impacted Businesses in India.
Impact on Swedish Businesses - Report 2/3
India is the 7th largest economy in the world, which consist of a strong and growing domestic Industrial and Retail market along with a strong engineering platform that serves most countries around the globe.
Business wise, many businesses are suffering right now, and dialogues between the government and companies about financial support are under progress. Unfortunately, very limited support has been provided or decided upon until today.
There are around 170 registered Swedish companies in India, and additional 1200 companies that are trading with India. I have interacted with some of the them that manufacture in India. As expecting during this lock-down they are having hard times. I am sharing a few insights about their business, supply chain and employees’ situation as follows:
• For the companies that sell products/services in India, many of these have been impacted since sales is taking a dramatic pause for many industries. And for the most dramatic cases where customers want to terminate the service contracts, they claim Force Majeure to avoid follow through the contract details.
• Earlier this week no logistic firms were up and running, which have given supply problems for several Swedish companies. For instance, supply chains stopped completely for Electronic, Auto motive component, process equipment and pharmaceuticals manufacturing. Very recently though, some logistic firms for critical product areas have started to move low intense.
• Employees for some Swedish companies have not been able to work at home since the computers are still at work, and cannot be delivered, due to roadblocks by the police. However, this is almost solved since various associations have pushed the government for support.
• Other challenges that comes with this is to help the immigrant workers. Many blue-collar workers origin from other states and want to go home to their states and families, but the police forces are restricting them. They will be continuing to be restricted, but the Government’s plan is to provide them food and shelter
Even if this is only 21 days lock down it will be tough for the companies. However, the restriction has just started to loosen up slightly, with some supply and logistics flow for critical business areas have started to move, there are possible to book tickets on trains, to mentioning a few.
In next report coming on Monday I’ll share a few insights in depths based on a Survey we at Centigo have conducted about the Global Offshore centers.