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CORONAVIRUS - The situation in India

​1. General Situation

The covid situation is under control. There are no special measurements in place.

2. Travelling

From November 22nd, 2022 the rules for international travelling have changed.

Passengers don’t have to register themselves on Air Sudhiva before arrival. There will be no more random testing of 2% of the passengers .

A.1. Planning for Travel

  • All travellers should preferably be fully vaccinated as per the approved primary schedule of vaccination against COVID-19 in their Country.

A.2. During Travel

  • ii. In-flight announcement about the ongoing COVID-19 pandemic including precautionary measures to be followed (preferable use of masks and following physical distancing) shall be made in flights/travel and at all points of entry.
  • iii. Any passenger having symptoms of COVId-19 during travel shall be isolated as per standard protocol i.e. the said passenger should be wearing mask, isolated and segregated from other passengers in flight/travel and shifted to an isolation facility subsequently for follow up treatment.

A.3. On arrival

  • iv. De-boarding should be done ensuring physical distancing.
  • v. Thermal screening should be done in respect of all the passengers by the health officials present at the point of entry.
  • vi. The passengers found to be symptomatic during screening shall be immediately isolated, taken to a designated medical facility as per health protocol (as above).
  • vii. All travellers should self-monitor their health post arrival also shall report to their nearest health facility or call National helpline number (1075)/ State Helpline Number in case they have any symptoms suggestive.

4. Economy

a. Economic impact 

The Indian economy contracted by a record 23.9 % in the April-June quarter of 2020 as the pandemic and lockdown affected the service sectors, manufacturing and construction. (It had grown 5.2 % in the same quarter a year ago). The cascading effect is still seen in the economy and the economy was slowly limping back before the 2nd wave hit again.

India's economy is projected to grow at 7.5 per cent in 2021 and around 10% in 2022, as per the United Nations Department of Economic & Social Affairs. (Source: Business Standard). Since April 2021 various States have implemented lockdowns, although less stricter than in 2020. The effect on the Indian economy is still to be seen.

The Highlights of the Economic Survey of India 2020-2021 can be viewed here.

b. Measures for Economic Relaunch

The Union Budget, presented on February 1, 2021 aimed consolidating of several COVID-19 response economic measures and to further energize the Indian economy through a combination of short-term, medium-term, and long-term measures.

The Budget Highlights and Budget at a Glance are enclosed.

The notable progressive policy changes are as follows:

  • New Companies set up in India which start manufacturing before March 31, 2023 - the applicable Corporate Tax is 15%
  • Production Linked Incentive Scheme – on approval basis for specified Industries for the next 5 years - incentive varies between 4-6% of the incremental sales
  • Faceless Tax Assessment – at various levels right up to tribunals making it transparent
  • New Labour Code:  Operational from April 1, 2021, the long pending labour issues have been addressed and all the following have been integrated into one comprehensive code and making it more progressive in approach

As a recollection, in November 2020, the Government of India announced US$ 36 billion stimulus package to generate job opportunities and provide liquidity support to various sectors such as tourism, aviation, construction and housing.

c. Trends

The pandemic has made businesses re-think their strategy and positioning. More and more companies are adopting lean strategy models. Decision making on expansion, internationalization, tie-ups and collaboration has slowed down considerably and stakeholders are being extremely cautious.

The focus on digitization is now of utmost importance for businesses across sectors irrespective of their size. Stakeholders and business owner now more so realize the value addition of incorporating digital platforms whether to support sales and marketing or to manage internal administrative affairs. Majority of Indian companies, especially the SME and MSME’s are now undergoing the digital transformation which was long overdue.

Due to the global cues of China Exodus, companies from across the globe are exploring India as one of the destinations for relocating their manufacturing base. Various Government initiatives are aimed to boost the country’s manufacturing sector and increase purchasing power of an average Indian consumer.

d. Opportunities

Following sectors have evolved and have witnessed significant demand as a result of the pandemic.   

Healthcare & Wellness: As people adopt better personal hygiene practices in the post-COVID-19 world, the consumption of immunity-boosting and wellness products is expected to see a rise. At present, products like disinfectants and sanitizers are recording the highest sales – a trend that seems likely to continue and become deeply ingrained in consumer behaviour. Fitness products like fitness tracking gadgets and apps are also seeing a surge in demand.  Moreover, as people turn to the online medium, provisions like online medicine delivery and teleconsulting will rise even further in the future. 

Digital & Internet Economy: In the Asia Pacific region, India is amongst the top three digital adapters for hardware, along with Japan and China, with the over 560 million and rapidly growing Internet users in the country (about 50% of our population). During the course of the pandemic, people started using digital medium for work, education, entertainment, shopping, and payments. Online platforms for work meetings has seen a massive rise in popularity. Meeting and Video calling Applications have come up with innovative features making it conducive for professionals to work from home. Some of the sectors that have witnessed exponential growth due to Covid are ed-tech, OTT platforms, fintech, remote working tools, e-commerce & delivery based services, and cybersecurity.

Automation: While automation technologies have been around for some time, deployed at various levels like chatbots, automated tele-calling, voice assistants, or the industrialized robotics but In the COVID-19 environment, where contactless interaction has been the top priority, automation technologies have found a much faster adoption rate than ever.

Speciality Chemicals: Increased need for cleansing and sanitation has catapulted the demand for hand sanitizers, disinfectants, and surface cleaners. India’s largest fast-moving consumer goods (FMCG) companies have rolled out a range of home cleaning, disinfectants, and personal hygiene products as they anticipate a surge in demand for such items amid the COVID-19 crisis.  Also, the increased demand for the disinfectants, drugs, and medicines due to the pandemic, has given an opportunity to the organizations manufacturing chemicals required for manufacturing these. Hence organizations dealing in chemicals are expected to see a spike in demand owing to increased demand for disinfectants, drugs, and medicines by the customers.

5. Useful links

6. Dossier Coronavirus

Het coronavirus heeft een wereldwijde impact, niet alleen op de gezondheid maar ook op de economie. Ook uw export kan hiervan gevolgen of zelfs hinder ondervinden.

FIT monitort de risico's dagelijks en ons buitenlands netwerk informeert u over alle implicaties voor Vlaamse exporteurs op hun internationale activiteiten.

In het dossier Coronavirus vindt u een aantal nuttige tips, adviezen en inzichten in de economische impact van de verspreiding van het virus op internationaal ondernemen.

Met vragen over internationaal ondernemen in tijden van Corona, kan u terecht bij exportadvies-corona@fitagency.be.

14 februari 2022

Bijkomende informatie

Ministry of Health guidelines (PDF – 473 kB)