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The ongoing debate about whether
the agricultural sector will save the day for the Indian economy when there is rapid
spread of the pandemic? This is a year in which the wider economy is expected
to contract, with agriculture expected to continuously grow.
Tractor sales in India soared
22.5% to 92,888 units in June 2020. In June 2019, it sold 75,858
tractors. Does this mean a recovery in the rural economy? Can the rural economy
push the Indian economy ahead in the coming months?
If we compare sales from June
2020 with sales from June 2019, it suggests a revival in the rural economy.
What we need to consider though is that the period between April and June is
the traditional tractor sales season. Sales from April to June 2020 dropped
13.7 % to 1,65,156 units relative to last year. That's the lowest in four
years. High June sales is also due to the pent-up demand, considering the April
and May lockdowns. Only if the tractor sales figures remain robust in the
months ahead, then we can suggest a marginal recovery in rural economy.
Following the lockdown and
disruption caused by coronavirus, tractor sales did not decrease as much as
other vehicles such as two-wheelers and cars. This is mainly because the
agriculture sector was not as badly affected by the pandemic as the other
sectors with strong rabi crop harvest and a good monsoon season helped boost
the sale of tractors, government cash assistance for farmers and funding
availability further increased the growth momentum.
Escorts announced 9.5% growth
from 4,860 units in July 2019 to 5,322 units in July 2020
Mahindra & Mahindra’s Farm
Equipment Sector reported 27% growth from 19,992 units in July 2019 to 25,402
units in July 2020
Sonalika Tractors announced 71.7%
growth in domestic sales to 8,219 units, compared to a year ago
The Center has provided an increased
distribution of Rs 1.5 lakh crore cash in rural India by the purchase of crops
at MSP and other benefit schemes, according to Citibank.
The farmers had a good rabi crop
harvest including better yield they are queuing up to buy tractors in cash. A
normal tractor costs just about Rs 5 lakh, and manufacturers give preference to
cash-paying farmers. Not a lot of farmers are currently applying for loans to
purchase tractors. In addition to buying agricultural goods such as wheat at
minimum support prices (MSP), some state government such as Chhattisgarh and
Madhya Pradesh have given farmers incentives, leaving them with a significant
amount of cash they also have received good amount of bonuses thus demand for
tractors is such that the manufacturers running their units at full capacity.
Besides these, waiver of farm
loans by states like Maharashtra also helped farmers loaded with cash.
Companies plan to hit maximum capacity in August, after fixing supply chains
that collapsed in the months-long lockdown to contain the coronavirus. But it
should be noted that the increased tractor sales merely indicate that extremely
rich farmers are doing well. They do not represent the state of the
agricultural economy as a whole nor the rural economy in this regard.
There's more to the agricultural
economy than just rice and wheat. As supply chains have broken down, the hotels
and restaurants have been shut down, everybody, from vegetable growers to fruit
growers to dairy farmers and poultry farmers had a tough time in recent
months. Given their perish ability there are no MSPs for vegetables and fruits.
Here it is worth mentioning that since 2012-13, total horticulture production
has surpassed food grain production, from vegetables to fruits, spices,
flowers, honey to plantation crops. Therefore, it is not right to say that the
whole agricultural economy has been doing well there are many farmers out there
with very little government support.
Agriculture is the only sector
expected to grow this year which is a great news. Nevertheless, it is important
to remember that in 2019-20, the scale of the industry which includes forestry
as well as fishing, was just 13.4% of the total economy which is too small to
propel the economy. Over the years, the size of agriculture as a share of the
economy has also shrunk.
To sum up its difficult to say
that increased tractor sales will help in reviving the economy, though rural
economy may end up being in a better shape than the urban economy during the
course of this year, but it is not in a position to drive growth across the
overall economy
The Indian government announced
on 24 March that it will lockdown nationally until April 14, which was later
extended till 3 May. A lot of B-School campuses across India shut down their
campuses as a preventive measure, following the government's order to close all
educational institutions. Many government and private B-schools postponed
courses, semester exams, convocation, and rounds of group discussion &
personal interview.
The uncertainty over the next two
years about securing internships and jobs has affected the decision of many
aspirants to delay their plans. The pandemic has interrupted the plans of many
young people who expect to attend B-school this year in India and abroad. For
the fall semester schools expect a less diverse community. Embassies and
consulates are closed, so the issuing of visas has come to a halt. Airplanes
are grounded across the globe which means study trips are cancelled which is a
major part of MBA hence, many schools will switch to national and regional
students to compensate for the global mobility disruption.
Most are worried about the
effectiveness of the programme, considering the extent of the social and
economic damage done by Covid-19. Leading B - schools in India are unfazed by
the ongoing economic downturn. However, the middle and lower ranking B-schools
have taken on a big hit, especially in terms of placements, which rely on sales
jobs involving travel.
Some B-schools have changed their
course length and teaching method to respond to the transition. Indian School
of Business (ISB) restructured its curriculum and went through the lockdown
online for two months, and reducing semesters from five hybrid models to four
weeks as not all students will be able to attend on-campus classes when they
begin. It also offers them the chance to reach out to a larger pool of leading
foreign faculty and industry leaders. Many students are not happy about this
and feel that online classes do not justify the high fees and whether online
education can match the quality of personal education with job prospect has
made MBA a devalued asset among MBA aspirants.
Campus experience and networking
are key aspects of selecting an institute. The networking is a big part of an
MBA course. If institutes invite business leaders for guest lectures, students
get a chance to interact with the person. If it's online then it’s not possible
to interact with everyone. Those seeking to join a business school are also
wondering whether it would be useful to have an MBA degree given the changing
business landscape. Managing digital and remote jobs would also be needed
further.
It is a phenomenon that has been going on for some time, but Covid-19
has significantly paced it up Many organisations now feel that they need a
greater awareness of how to manage and maintain connections and communication
from a distance. MBA degree is seen valuable by millions of Indians every
year. Not only is it a chance at a better pay, the degree is a gateway to
switch career but the reputation of the school, what's being taught, the alumni network and the kind of companies that
knock at the door during campus placements also matters a lot.
The pandemic impact and the slow
employment market has affected long tail of mediocre B-schools which is now
facing a crisis. Campus placements typically take place between December and
April, due to the lockdown, many management institutes either stalled or left
the placement phase unfinished by 2020. Many Tier II and III B-schools are now
struggling to place their student's, pandemic has thrown the schedule and plans
of business school students into total disarray.
Anticipating a slump in the
economy due to the spread of Covid-19 summer internships of many b-school
students has been postponed, cancelled or cut short from eight weeks to six
weeks some of them have gone online this will impact the final placement of 2021. Compared to the last placement season, the
average salary offer is up 7-15 percent in top B-schools but the scenario for
Tier II and III B-schools is totally different. Online delivery of content is a
new beast and professors are ill-prepared. Schools need to revisit what they
are teaching as well as develop new content, as business models has experienced
drastic changes in last two months.
Every business at the moment is
building a new cost model and new level of efficiency in operations by
inducting more technology which should be taught by B-Schools and if they are not
including such things in their curriculum then they will surely be left behind.
“Schools needs to focus on skills
such as creativity, crisis management, conflict management, empathy,
leadership, strategic thinking, understanding technological progress, disruption,
problem solving, and dynamic decision making to make an impact on the market”.
At last i will like to conclude by saying, MBA is
valuable to those who want to learn to manage in complex environments. The more
students are willing to learn and grow, the more they will get out of their
experience.
As soon as lock-down was announced in the country, households
panicked and rushed to grocery stores to stock up on essentials even after
Prime Minister announced that the essential services would be exempted from the lock-down whereas crowd gathered outside warehouse and the company did not had
any options left but to do retail sales, to everyone surprise there were no
disruptions the next morning and the milk truck arrived on time.
India imposed a strict lock-down between 25 March and 7 June
but there were no instances of shortage of dairy products or customers being
extra charged. In contrast, essential items which are perishables such as
fruits and vegetables experienced regular fluctuations in price and
availability.
The pandemic has
proved the intrinsic strengths of the cooperative dairy industry and the
resilient supply chain of Amul. Amul works on trust and disciplined supply
chain built on social innovation model. Pandemic or no pandemic, given the fact
that milk is a highly perishable product, it has never back off from the
commitment of a stable price for both consumers and farmers.
The Amul brand is connected with 3.6 million farmers where
the products of Gujarat Cooperative Milk Marketing Federation or GCMMF is sold
under Amul brand. Milk is brought by 2.6 million farmers twice a day from
18,600 villages and then the milk is processed, packed after transporting it to
district milk unions. 10,000 distributors and a million retailers deliver the products
to billion consumers daily.
Once the lock-down was imposed, Amul declared cash incentives
for staff at dairy plants, drivers, sales executives, distributors and
retailers. Although casual workers received extra cash aid for working during
a pandemic between 100 - 125, distributors received an additional 35 paisa
incentive per litre of milk. Food and stay arrangements were made to avoid any labour
shortages for employees inside dairy plants.
Around the same time, the firm reached out to the Union home
ministry and state departments of animal husbandry to arrange passes for its
employees and ensured that empty trucks were permitted to return (after
supplying milk products).
It coordinated with the district collectors where packaging
factories were situated to ensure continuous supply of packaging materials.
Amul also arranged for cattle feed to be exported to Gujarat for its farmers
from states such as Punjab and Haryana. Nearly 45 percent of the goods were
shipped by freight trains, which reduced travel time.
Amul continued to take extra care of their staff, planning
their meals and stay plus cash incentives. From warm water for drinking to
Ayurvedic medicines (to boost immunity), all was successfully done, there was
not a single recorded case of infection among plant workers and not a single litre
of milk was wasted. The plant could handle more than 500,000 litres of milk it
received daily.
The lock-down led small dairies and unorganized trade withdrawal
from the supply of milk, Amul received 15-17 % more milk from farmers as households
preferred a trustworthy brand over unbranded or loose milk, demand for Amul 's
liquid packed milk increased by 5-7 % relative to Pre-Covid days.
Given the closing of hotels and restaurants, demand for
cheese and paneer is at least 30 % higher, while sales of butter and ghee are
up 10-20 %. During the shutdown, demand for ice creams plummet but Amul was able
to shift the ice cream distribution network into other product segments. The lockdown
and the pandemic fear led consumers trust in Amul in addition to this the
uninterrupted delivery helped them rise. Amul managed to bring some 12,000-crore
cash into the hands of the dairy farmers who supplied them with raw milk, while
many corporations failed to sustain their production chains and product sales
during the pandemic, Amul will definitely gain market share.
Even in such time, Amul has introduced 'Ginger' and 'Tulsi' milk to improve
immunity in the Covid-19 pandemic as coronavirus vaccine is yet to arrive,
their latest variants of milk will ensure that people have adequate immunity before
them to combat the deadly virus. Such drinks can be enjoyed daily by any age
group at any time. They come for 125mL easy-open-end can, at a price of just Rs
25. At room temperature, the packages have a shelf life of 6 months. Amul
introduced Haldi milk earlier in April which is known for its antibacterial and
anti-inflammatory properties.
Thus, we can see that the brand value and trust
has certainly helped Amul to survive such a pandemic with strong supply chain
of farmers and distributors whereas the benefit of the Amul cooperative model
is that profit is not a business goal where they never drive away a farmer and
the primary aim is to provide products to the consumer for the lowest possible
price. It has done a fantastic job (during the lockdown) leveraging its work
culture and its image. Amul has not only kept its promise of delivery of its
products but has achieved a growth which seems impossible in current period
with lock-down and global recession round the corner also the GCMMF has sat a
goal to achieve business turnover of 1 lakh crore by 2024-25 by targeting a
spot in the world's top three dairy players.
Massive
disruption is being seen in the process of selling; sales teams are now
planning for the Post-Covid-19 world to overcome the pandemic by learning the
art of closing deals in video calls to engaging clients on social media
platforms. If it comes to what's happening in the economy today as a result of
the Covid-19 pandemic, there are two rates of instability of industry. First,
routine sales meet & travel, and softer aspect of finalizing a deal,
especially for B2B sales where a face-to-face discussion with key
stakeholders or a dine and meeting is key to ironing out a deal's contours. Second,
a decline in consumer demand in some industries, such as travel, hospitality,
aviation, will see a resulting sharp decrease in their level of desire to
proceed with other business functions. And any other sector should be more
conservative and less likely to invest.
The
blueprint for post-Covid era sales requires the search for innovative product
lines but also shifting to alternative platforms to hold on to customers and
explore with various retail formats. In industries such as real estate and
technology services, there has been a large-scale digitization of business
operations — including remote selling through webinars and gamified virtual
walkthroughs.
For
example, the regular day of a traditional salesperson involved visiting two or
three potential clients, over breakfast, lunch or dinner to discuss products or
services. Closing deals needs another few meeting personal touch was always
important to customers before closing deals, but the sales team's adoption of
digital for customer access has significantly increased. This meant that
traditional sales strategy will have to be reworked and that teams will now
need to leverage technology to engage with customers. Even after current travel
restrictions are lifted, the new model is more or less likely to remain in
place.
Travel is going to decline and
companies will do things differently. So sales people are still going to
travel, but not for the same reason as they used to. Sales person will visit
clients, but instead of visiting clients three days a week they would visit
them once and the rest of the time they would be using virtual calls however,
this new paradigm pushes sales department to be more responsive because the
campaign success can be measured in virtual meetings unlike physical ones.
Digital sales are becoming a
global phenomenon. McKinsey and Company recently completed surveys of B2B
businesses across 11 countries. In a study entitled The B2B Digital Inflection
Point: How sales have changed during Covid-19, the company stated: "Nearly
90 percent of sales switched to a video conference / phone / web sales model,
and while there remains some doubt, more than half agree that this is
equivalent or more successful than sales models used before Covid-19."
In India, the pandemic has forced
many businesses to re-examine their existing distribution strategies. Some sale
will undoubtedly be affected due to fresh worries around hygiene, physical
contact, social distancing, traveling to locations that are not sanitized, but
there are also broader problems. How sustainable will this trend be when the
pandemic is contained? Wouldn't people just revert to their old ways?
The human desire for physical contact, where seeing and believing will never go away. Many companies require live
demonstrations, physical presence, convincing one-on-one.This would, however,
minimize to a significant degree, for example vehicle sales would also involve
a car inspection, a test drive. Yet a customer would do more of the online
research, and the test drive would be a finale.
Changes
which firms will do post Covid to manage sales are as follows
Connecting with new channels: - Orders will be collected via
phone which was earlier taken from physical sales. The company's e-commerce
website will witness a major traffic shift. Consumers will consolidate shopping
into one or two days a month instead of four times a month, and Bigger-format
retailers and aggregators will prosper. Firms like Tupperware India has moved
from direct sales to what it calls "social selling" where each direct
seller is given a URL that they can share within their peer group. Direct
sellers typically send them to their Whats App and other contacts via social
media. When clicked the URL it will take buyers to company website.
Remote Selling: - Covid-19 is
refashioning how at this moment the organization handles its retailers and
distributors, for example A real estate firm, creates leads via its website
where members of the customer service get in contact with potential property
customers by phone or mail. The company's brokers contact prospective investors
and then tour the real estate sites before selecting a property to invest in.
Part of this buying process has moved remote also organizing webinars for
developers where videos of the property, the locality are displayed to
prospective buyers and within the session of webinar various queries of
customer is taken by sales executives.
New demand: - While, five-star
and luxury hotels are working with delivery firms to send delicacies at home as
well as hotels are offering quarantine services, while both quarantine demand
and home delivery opportunities for luxury hotels are for the short term, they
need to look at potential new revenue opportunities that are more viable by
re-calibrating business models.
Re-invest your time: - The time
saved on travel will now be used for up-skilling or learning about a new sector
or industry to which you previously did not cater too. Getting a good knowledge
of the organisation of your clients helps you stand out from the competitors.
Educate your customers: - Start a
newsletter or podcast to share positive stories with your product / solutions
about how your other clients are having success. It will offer your prospects
confidence and keep you in mind while proving that your business is still alive
and kicking.
The keys to navigate the next
normal are speed, agility and a new understanding of consumer values. Sales
leaders need to operate through three horizons simultaneously: navigating the
crisis now, planning for recovery and leading the next normal.
Source: - From Article Leading with purpose by McKinsey & Company
Sales leader should follow the
quote “actions demonstrates commitment, so leaders must respond to the immediate
needs of the sales organization beyond health and safety”.
Companies will adopt “SHAPE”
model to lead sales post Covid
Start-up mindset: - The start-up
mindset biases action over research and testing over analysis start-up leaders
set an agile standard by daily team check-ins, weekly 30-minute CEO reviews and
two-week sprint reviews.
Human at the core: -
Organizations would need to reconsider their business model to push rapid
change, develop it on how your employees work effectively, which may need a
whole new level of coordination which coaching between front-line selling staff
and leadership to meet customer standards.
Accelerate digital, tech, and
analytics: - The best companies will respond swiftly to develop and extend their
digital channels by using advanced analytics to combine new and innovative
sources of data
Purpose-driven customer playbook:
- Keeping customers at the center of business is a long-established concept,
but post-corona-virus companies will need to reconsider decision-making
processes to consider what consumers now value and design new use cases and
customer experiences based on those insights and then segment clients.
Ecosystems to drive adaptability:
- The disruptions in supply chains and retail purchasing networks have made
adaptability essential not just for sustainability but also for quick exposure
to opportunities. Adaptability will mean how businesses operate with
organizations and investors in the short term but it may take new partnerships
and non-traditional collaborations in the long run, including strategic
M&A.
Steps need to be taken to
increase the sales during pandemic are
Increase revenue through
up-selling
Experiment with the cold call
scripts and email templates
Sell longer contracts
Get more referral sales
Thus, trying something new which is mentioned
above will certainly boost the sales of the organisation and will convert dry
pipeline into a well of golden opportunities.
Lots
of money and opportunity will eventually follow in India when booze is
concerned and it is the liquor delivery sector that has led companies,
services, startups and entrepreneurs alike to see a massive windfall. In India,
liquor sales take place through three licensed vertical retail, horeca (hotels,
restaurants and catering), and department canteen stores. The total horeca
licensed places are around 30,000 in the country and the stock in hand is for 1
month at any given time, which means that the total unsold inventory at various
horeca outlets throughout India would be around Rs 3,000 while liquor retail
sales are opening, the service industry continues to be deferred due to corona.
According to the All India
Brewers Association (AIBA), the liquor industry is contributing revenues to
state governments about Rs 2.5 lakh crore. In the 40-odd days when liquor trade
was closed, states lost revenue of around Rs 25,000 crores. After the lock down imposed in the country on 25 March, all liquor shops and distributors in the
country were closed and production, services and supply were also halted.
Although customers were supported by eCommerce and app-based logistics
companies to get on their doorsteps a continuous supply of food and vital
goods, alcohol buyers were left in the lurch.
The
Indian food aggregators such as Zomato and Swiggy seem to have heard the
alcohol lovers’ anxious prayers. The company has confirmed in a major
announcement that it is making a foray into supplying alcohol to customers at
their doorstep. The company is on the road to set an example for the entire industry,
having already diversified its interests into grocery stores and home
essentials delivery less than a week after launching similar services in
Jharkhand Zomato and Swiggy launched
home delivery of alcohol in Odisha as part of measures to avoid overcrowding of
customers in shops in the midst of the coronavirus pandemic. Zomato would soon
spread to other towns, such as Rourkela, Balasore, Balangir, Sambalpur,
Berhampur and Cuttack, beginning with Bhubaneswar.
Swiggy said in a separate
statement that their home delivery service went live in Bhubaneswar and
Rourkela last month after receiving the necessary approvals from the government
of Odisha and plans to extend to other major cities in the state. Earlier this
month, the Supreme Court requested states to allow non-direct contact or
digital purchases and home delivery of liquor during the lockout phase to avoid
the spread of coronavirus due to crowding in the shops, there will be age
checks at the time of order as well as at the time of delivery of the product.
Users would be asked to submit a valid proof of Identity to be qualified for
order, which will then be checked by the delivery partner when the order is
issued. The service called Zomato Wine Shops would be available on the Zomato
app's homepage and will enable users to select any product from the listed
retailers and have it delivered right outside their doors of place orders.
All
orders will carry a unique OTP which the customer must provide at the time of
delivery. The news has certainly grabbed the eyeballs throughout, with
businesses of all scales, especially those who are up and coming, looking to
expand their horizons, vertically or horizontally, aggressively and actively.
Within no time the internet became abuzz with the news of many other existing
businessmen and investors who have set their eyes on this untapped Indian
market and this has led to many unanswered questions which are as follows
1. Will Liquor delivery
be the next multi-billion startup idea for entrepreneurs in INDIA?
2. Whether this
kind of business model is high-risk high-gain for entrepreneurs and investors?
3. Will it be a new cash cow for the economy?
Liquor Delivery: The Trigger
It will come as no surprise that the market for
liquor has skyrocketed since the shutdown, consisting of such a vibrant
customer base. As the government eased restrictions on the movement of
essential and non-essential goods from 4 May, it also took the decision to
allow a fraction of liquor outlets to reopen throughout the country. This prompted
other consumers around the country to flout social distancing norms such
desperate acts by the people prompted the government to consider viable ways to
curtail the spread of coronavirus and offered the involved parties an immense
opportunity to capitalize on such a huge market. Whether or not liquor delivery
was originally in every organization's plans, the pandemic's onset has
intensified the effort to diversify their operations.
This
actually has an impact across multiple facets. Startups such as HipBar,
HipCask, sites such as WineBazar.in and LetsBuyDrink.com, etc., have already
been doing business in space, facilitating the home delivery of alcoholic
beverages in that time, also achieving varied levels of success, sometimes due
to the grey area in operation and sometimes due to changing state government laws.
It is precisely these issues that have made this lockdown the perfect
opportunity to rake in the extra cash for these companies.
For
certain nations, overall tax based on alcohol consumption amounts to as much as
25 per cent. annually, Delhi with per capita GDP higher than the national
level, receives over Rs 5,000 crore. Last year Karnataka earned Rs 21,400 crore
from the liquor sales. In this time of crisis, states like Kerala and
Meghalaya, which have the highest per capita consumption rates for alcoholic
beverages, along with Goa, which is also a tourism-driven industry are severely
impacted. The central government has proclaimed itself to be hit hard, and the
GST reserves and revenue sources of the states have dried up.
In
the aftermath of these spectacular results, states are pushing for a regulated
compliance and delivery allocation to account for lost sources of revenue. It
has also encouraged app and web services to continue their work and to
stabilize their companies by expanding their offerings to multiple outlets and
governments of the state. States such as Chhattisgarh, Punjab and West Bengal
have all launched online portals and mobile apps that offer door-to - door
alcoholic beverage distribution (9am-7pm) based on age verification by means of
Aadhar numbers.
At
the other hand, many companies have also requested state governments to
encourage them to move forward with the distribution services in tandem with
Zomato, with their near rivals Swiggy obviously interested in entering the
space. ISWAI, the Indian Spirits and Wines Association of India, a representative
body, has also called for more clarification on the standards and legislation
for alcoholic beverage distribution through the states but the biggest
challenge for Swiggy and Zomato will be the detailed clearance required by each
state government to expand this line of business.
A Multi-Billion Dollar
Opportunity for Entrepreneurs
Such technological measures will not only
provide the government with effective ways to fight the spread of COVID-19
while maintaining regulations, but will also enable potential entrepreneurs to
benefit from the clientele. The delivery model which works on the app has garnered
huge success in India. Though Zomato,
Swiggy, Big basket has already been riding high with their unicorn status,
there are more than 1,0007 logistics start-ups, including Dunzo and JhutPut,
seeking to gain a substantial market share.
India's
alcohol industry is the world 's third-largest with an estimated $35 billion
behind just two big nations, China and Russia. According to Euromonitor International, a
well-known research firm, India's spirit industry – which includes whiskey,
brandy, rum and vodka is estimated to grow 25 percent by 2022 to 2.92 trillion
rupees ($41bn). Combine it with India's beer market, by 2022 the combined
demand is expected to be as high as $56 billion to $60 billion (4.4 trillion
rupees).
With
the increase in the rise of smartphones, the rapid use of digital payment
systems and the growth in customer trust in technology-driven delivery firms
the app-based liquor delivery start-ups could comfortably account for not less
than 1% of the overall market over the next two years, which will amount to
$600 million (3,800 crore rupees) now that Indian delivery startups are growing
it would be safe to assume that India 's online liquor delivery market would be
nearly $ 3 billion – $4 billion business in the next 4-5 years.
Liquor Delivery: The Challenges
It is just the dawn of India's liquor delivery
market. Just like every emerging sector, it always comes with a range of its
own policy challenges, as well as emerging businessmen. The government has to
re-examine its liquor policies to gain entrepreneurs' trust. The uncertainty in
the business model of liquor delivery is a major problem and companies like
HipBar have already felt the brunt of that.
The biggest barrier to the sale of liquor continues to be the disparity
of laws between various jurisdictions. Retail laws are not only special but
there is also a disparity in income, rates and also age limits.
The
major challenge is about managing inventories. Imagine a consumer order on the
app for a particular variety of beer, and something else is delivered which is
not desired also retailers worry that online businesses such as Zomato , Swiggy
and others may threaten profitability, which is a major deal in the liquor
store industry due to the high sale license price. For businesses like Swiggy
and Zomato there are no rules as retailers believe they won't be able to access
the orders they normally receive because applications can monitor the whole
chain from ordering to last-mile delivery. Just a few retailers could go for
exclusive Zomato and Swiggy tie-ups. In this situation, when exclusivity comes
at a premium, smaller retailers would miss out on the market. Data misuse by
food delivery apps could monopolize consumer data from liquor distribution,
claimed by some restaurants in the food delivery space. Retailers want to own this data as they
think consumers will be linked directly to sellers.
To sum up
Governments in almost all states have imposed on
the alcoholic drinks a heavy 'extra corona tax' to maximize revenue, thus
helping the operations of delivery services. Brewery workers have also called
for this model to be affirmed, because it will help thousands of workers to get
paid and restaurants, roadside dhabas will benefit from this arrangement which
have been dry all along this time. What seems to be a controversial issue on
the surface can be the one which provides the economy and its related
businesses with a big cash flow it is really an opportunity worth exploring for
entrepreneurs. How far the liquor delivery firms extract the revenue will rely
on the policies the government chooses to adopt.
The current health and economic
crisis give us insights into what is and is not working well in India, and how
we should be preparing for a better tomorrow. Yes, we were able to better reach
the marginalized population of India using our public distribution system and
direct transfers of benefits through the digital infrastructure that we have
built over the last decade also the migrant worker 's plight and the urban and
rural daily worker's huge economic setback are becoming painfully transparent.
The attempts of the government to
build employment and protect employees have fallen short with a skills
development plan that has missed goals, a welfare system that only protects a
small proportion of the unorganized workforce, and a network of underfunded
rural employment. India needs to promote the inclusion of women in the labour
force. In 2011-2012, women accounted for no more than 25 percent of the labour
force, down from 33 percent in 2005, according to a 2014 national sample survey
on employment, rate worse than the Bangladesh, Nepal and Sri Lanka neighbors.
India’s unemployment is the
result of
Low level of education
High dropout rates
Lab our market asymmetries
A mismatch between the supply of skills and demand
The high aspirations of young people
Most
metropolitan municipal bodies lack the capital, capability and financial
flexibility to enhance their provision of public services, and the towns face
extreme environmental pressures such as floods, landslides and coastal
degradation as well. Together, financial unsustainability and environmental hazards
drive migration while leading to poor quality of life and concerns about public
health.
Is it possible to tackle these twin challenges
together using an integrated approach-Yes and the Green Jobs is the way forward as classified by
the International Lab our Organization, these are decent jobs which also help
preserve the environment. Jobs will come from both conventional industries such
as manufacturing and building, and emerging green industries such as recycling,
water conservation, waste management, urban farming and green transport.
India 's transition to a green economy could create 3 million jobs,
projected by the International Lab our Organization, in the renewable energy
sector alone by 2030. In 2017, this sector created 47,000 new jobs in India,
employing 432,000 people according to a July 2018 India Spend report. The
number of jobs in India's green energy sector, excluding large hydro power
projects, increased in just one year to 2017 by 12 per cent. About 20 percent
of the more than 500,000 new green jobs created worldwide in 2017 were in
India, meaning that the sector employed more than 721,000 Indians. Green jobs
thus seem to be the way a nation with a strong demographic dividend will go, a
high jobless rate and a declining environment. According to the above-mentioned
report, around 24 million jobs could be created by transitioning to a circular
economy that includes activities such as recycling, repairing, renting and
re-manufacturing, and ecosystem services such as air and water purification,
soil renewal and fertilization.
Green Jobs can be generated in the following sector
RENEWABLE SECTOR
As per the Ministry for New and Renewable energy, India 's rising
renewable energy market is expected to create more jobs in the coming years.
More people are needed in this sector to make this transition feasible, in jobs
such as solar power generation on the rooftop, the manufacture of solar panel
modules, inverters and converters, and end-use components for LED bulbs and
energy efficient pumps.
WASTE MANAGEMENT
Green jobs can also be a way to address two critical issues faced by
most Indian towns and cities which are municipal solid waste management and
wastewater management. At present it is projected that hazardous waste is
disposed of unsafely directly into the atmosphere and that various states have
very little disposal ability to dispose of this waste safely. A relatively
small volume of water is treated and the remainder is disposed of without
treatment into the atmosphere, contaminating the surface and groundwater
sources and contributing to public health issues. Building and operating
treatment plants — both sewage treatment plants for sewer waste and faecal
sludge treatment plants for non-sewer waste — can help to efficiently dispose
of these, while also providing jobs. There is still no effective disposal of
solid waste in the state, and most cities have inefficient centralized solid
waste collection facilities. In a city municipal corporation, solid waste
management activities such as dry waste disposal and micro-composting systems
may produce several jobs each year.
GREEN TRANSPORT
The transport sector is responsible for a lot of greenhouse gas
emissions, using more than a quarter of the world 's energy and nearly equal
share of global emissions of carbon dioxide. To address this, central and state
policies are gradually promoting the introduction of non-motorized transport,
electric vehicles, and bio-CNG vehicles. India's National Electric Mobility
Mission Plan 2020 has the ability to cause a disruptive change in the country's
automobile and transportation sectors if well executed. In the recent Union
budget, as an additional measure to promote electric vehicles, the central
government reduced GST for electric vehicles from 12 per cent to 5 per cent.
However, the adoption of electric vehicles and green mobility requires
considerable manpower, and this can generate large numbers of green jobs in
manufacturing, servicing and maintaining green mobility systems.
URBAN FARMING
Urban forestry and roof-top gardening are increasingly becoming a
phenomenon in India's cities and this will not only encourage local vegetable
production but also help to reduce the impact of heat-island effect. These
islands are created when human activities, such as the excessive use of
concrete and asphalt in construction work, create significantly warmer urban pockets
than those surrounding rural areas. For industrial areas these practices often
create carbon sinks that absorb pollution like a sponge. An increase in urban
farming practices can help create jobs in permaculture, gardening and nursery
management, and in the supply of soil and nutrients.
The other ways jobs can be created in the following areas
Employment Generation Through Packaging Services
Packaging requires good packing material, efficient packing personnel
and efficient transportation facilities. Significant number of people are
either self-employed or wage-employed for packaging.
Warehousing Services
Manufacturers carry out large-scale production and consumers buy the
goods according to their needs in small quantities. Consequently, the goods produced
must be stored in cold storage, warehouse etc It provides self-employment and
employment to staff, labour transporters etc.
Transport Services
When any means of transport are used, the entrepreneur indirectly
provides the operators, drivers, mechanics etc. with employment. Through this
way, the entrepreneur makes a positive profit by moving goods and passengers
from one place to another. It raises the country's income, which is also a sign
of growth.
Safety and Security Services
Many forms of insecurities have been caused by industrialization so every
individual, every industrialist, organization, and nation desires safety,
security, and protection. While the government provides security through
various acts, those efforts have only partially succeeded. Private businessmen
have begun offering security services under these conditions as well. The
entrepreneurs set up private sector security agencies through the deployment of
ex-army personnel, guards, peons, clerks, watchmen, and managers, etc. In this
way more job opportunities are developed.
THE WAY FORWARD
Due of the lack of a trained workforce, these sustainable practices
are yet to generate feasible job prospects, although many initiatives
understand the need for sustainable practices, implementation has always been a
challenge. For the generation of urban jobs along with advances in the nature
of such interventions itself is needed an integrated strategy that cuts through
various sectors and government departments. The other main concern is funding
and developing ties with the private sector for corporate social responsibility
funds and green jobs fellowship programs. This approach will also create a
platform for employing the newly developed workforce by green skills. The
Government-launched Skill Council for Green Jobs is a national program that has
developed courses in sectors such as renewable energy, green infrastructure and
solid waste management. The council also works closely with companies to ensure
they hire the skilled workers.
Finally, perceptions of green jobs need to be improved for those
associated with such sectors as waste management and sanitation for example,
have a negative perception in society and might not align with the aspirations
of job seekers. One way to overcome this may be by incorporating value-added
training as well as skill-building. English language instruction,
organizational skills, computer literacy particularly for trainee students,
accounting and bookkeeping may be added to the modules to match applicants'
ambitions.