Business Environment SECTION A, PGDM 23-25

IMPACT OF RECENT EVENTS ON

INDIA’S BUSINESS ENVIRONMENT

Presented by Group 6
Abhishek Bansal 230102098
V.L.K. Chaitanya 230101348
Divij Chawla 230101070
Khyati Kathuria 230103104
Mansi V. Langiwar 230101117
Vansh Maheshwari 230101224
 Russia-Ukraine War

OIL SECTOR EDIBLE OIL

Growing
For India which imports 85% Dependence The repercussion of war were
of it’s crude oil requirements it
on Russia for that -
had a negative impacts on
almost all the related sectors Oil Imports India's crude sunflower oil
be it the paint makers, oil imports fell by 23 per cent
makers, tyre businesses etc. to 5.70 lakh tonne between
February 21 and June 30 of
However oil crisis didn’t last that year
for long as Russia started
offering crude oil at Decline in
Shortfall of at least 4-6 lakh
discounted prices in order to Sunflower Oil
negate any sort of effects of tonnes of crude sunflower
Imports after oil for India next fiscal and
the USA trying to isolate the
country leading to saving of the spike in impact production of
$3.3 bln in the first half of price domestic edible oil
2023. processors.

Impact of Recent Events on India’s Business Environment | Group 6 Business Environment

AUTOMOBILE SECTOR AND IT STOCK MARKET
SECTOR VOLATILITY

The crisis of semiconductor shortage looms over the industry was

evident in the monthly figures of Hyundai Motor India which
The war led to the worst fall in BSE
reported a 14 percent decline in total sales at 53,159 units in
sensex in the last 2 years. The index
February.
crashed nearly 4000 points in the first
2023
It further cased a temporary pause in the activities for Indian IT
20 days leading to a huge decline in
sector at that time though no serious long term impact was
investor’s wealth
reported

INFLATION

Fueled by erratic rainfall and supply shocks from Russia's

invasion of Ukraine prices of daily consummables like cereals,
Vegetables which form a major component of inflation basket
climbed up steeply
India’s retail inflation climbed to 8 year high of 7.79% and
remained abve the RBI’s tolerance band
 India’s First G20 Summit

IMPACT ON THE STARTUP ECOSYSTEM IMPACT ON TECHNOLOGY & INNOVATION

340.80 2x Faster Growth 15% Emission 500 Billion

75% Investor 600
Billion for India’s Digital Reduction by 2030 to GDP by AI
Optimism Delegates
Valuation Economy

The Startup20 Engagement Group focuses on inviting The Ministry of Electronics and Information Technology
STARTUP20 Global Startup Stakeholders ~ Investors & G20 (MeitY) launched the G20-DIA ~ to showcase innovation &
INITIATIVE entrepreneurs to navigate macroeconomic concerns & INNOVATION build alliances across 6 themes: Education, Agriculture/Food
build the path forward. ALLIANCE Security, Finance, Health, Secured Digital Infrastructure, and
Circular Economy
Significant boost in investor interest ~ 75% of ENHANCED Greater focus on leveraging technology for advancing
Indian Investors are highly optimistic about OPTIMISM economic growth & and public services ~ the vision of DIGITAL PUBLIC
G20's effect on the Startup Ecosystem
digitally transforming public infrastructure. INFRASTRUCTURE

EASIER Startups' inclusion in the New Delhi Declaration to HUMAN Stronger emphasis on knowledge sharing to build literacy in
ACCESS TO drive easier capital inflows, reduce regulatory hurdles CENTRIC tech-enabled development, financial inclusion & digitalized
CAPITAL and navigate funding winter. APPROACH public infrastructure.

Unlock global markets & take centre stage for GLOBAL Minimal Government & Maximum Governance powered GLOBAL
foreign investments and collaboration RECOGNITION by Technology adoption ~ faster, transparent and secure SHOWCASE
opportunities. last mile delivery of welfare.

Impact of Recent Events on India’s Business Environment | Group 6 Business Environment

 India’s First G20 Summit

IMPACT ON ENERGY TRANSITION & SUSTAINABILITY

GREEN ENERGY Launched the Global BioFuels Alliance in New Delhi

TRANSITION ~ Promoting alternative fuels to reduce carbon
AS PER INTERNATION ENERGY 13,000
emissions.
EXCHANGE (IEA), INVESTMENT Billion,
The event's central idea on Vasudev
NEEDED TO MEET 2070 TARGETS till 2030
Kutumbakam led to the mission "LIFE" ~ Vision MISSION LIFE
of a human-centric energy transition focussing
on People, the Planet and Prosperity.

RENEWABLE ENERGY TARGET BY 500

SUSTAINABLE Emphasis on responsible and sustainable supply 2030 GW
SUPPLY CHAINS chains for critical minerals, essential for rapid
growth of clean energies.

Accelerated implementation of energy JUST ENERGY

efficiency measures by using super-efficient TRANSITIONS
appliances and optimized cooling direction.

Impact of Recent Events on India’s Business Environment | Group 6 Business Environment

 India’s First G20 Summit

IMPACT ON THE TOURISM INDUSTRY

Strong efforts towards establishing India as a

global MICE destination ~ leveraging G20 as a
MICE TOURISM platform to showcase world-class facilities & top- CONTRIBUTION TO THE ECONOMY & THE GDP
notch hospitality.
15 16.5 250
More significant global attraction added to
Trillion, Trillion, Billion,
GLOBAL
India's stature ~ Empowered by the presence VISIBILITY
by 2022 by 2023 by 2030
of top world leaders at the G20.

Enhanced demand for Tourism and Travel ~ aims to

FOREIGN FOREIGN
ECONOMIC
GROWTH
achieve $56 billion in foreign exchange, making it a
TOURIST
166% $56
EXCHANGE
significant economic contributor and job-creation
driver for 140 million people. ARRIVAL’23 Surge Billion BILLS

Growth incentives and ignition for India's

POLICY ENABLERS
hospitality sector ~ streamlined regulations

Impact of Recent Events on India’s Business Environment | Group 6 Business Environment

 India’s First G20 Summit

IMPACT ON THE INDIAN MSME s

80% of the Global GDP in a unique position CONTRIBUTION TO THE ECONOMY & THE GDP
POLICY ENABLERS associated with Trade ~ Push for harmonized
policies and collaboration with member countries
63.4 Million Active
to offer clearer path to International Markets
1 Trillion Valuation
Contributing MSMEs
of MSMEs by 2028
Bridging the gaps between Indian Enterprises
& Global Venture Capitalists ~ Steady Flow of
FINANCIAL by 2028
INCLUSION
Capital to MSMEs

EXPECTED FINANCING
Push for Digital Infrastructure to revolutionalize $5.2
DIGITAL
REVOLUTION
MSME and Financial Service interaction ~ Digital TRADE COST 15% Trillion
GAP TO BE
Channels to leverage unprecedented credit REDUCTION FILLED
facilities.

Unlocking Trade using interlinked E-waybills ~ TRADE

participate & close immediate agreements NEGOTIATIONS 20% Boost in MSME Registrations

Impact of Recent Events on India’s Business Environment | Group 6 Business Environment

 ICC Cricket World Cup 2023

ECONOMIC BOOST THROUGH TOURISM TICKET SALES AND SPONSORSHIP REVENUES

HOTEL & HOSPITALITY

MERCHANDISING
INDUSTRY

The hotel and hospitality sector experienced a boom as hotels, Official merchandise such as team jerseys, caps, and memorabilia
resorts, and guesthouses witnessed high occupancy rates. With were in high demand. The sale of these items not only benefitted
travellers seeking comfortable accommodations, this industry the cricket boards but also local manufacturers and retailers. e.g.
thrived during the tournament. Adidas India

RESTAURANT AND FOOD SPONSORSHIP DEALS

SERVICES

Global and local businesses competed for sponsorship

Tourists and locals alike flocked to restaurants and eateries,
opportunities, leading to lucrative deals for both the tournament
leading to increased business for the food service industry. From
organizers and the Indian economy. The exposure these brands
street food vendors to fine dining establishments, all segments
gained during the World Cup will have a lasting impact on their
reaped the benefits.
market presence. e.g. MPL
 ICC Cricket World Cup 2023

GROWTH OF THE SPORTS INDUSTRY MEDIA AND BROADCAST RIGHTS

INFRASTRUCTURE
ADVERTISING REVENUE
DEVELOPMENT

To meet the high standards required for hosting a World Cup, India The surge in viewership during the World Cup translated into
invested in the development of world-class cricket stadiums and higher advertising revenues for broadcasters. This injection of
sports facilities. These facilities will continue to benefit athletes funds into the media industry stimulates growth. e.g. Hotstar
and sports enthusiasts long after the tournament concludes.

EXPOSURE FOR LOCAL

SPORTS TOURISM BRANDS

India’s reputation as a cricketing hub is further solidified, attracting Local businesses got the opportunity to advertise during World
sports tourists from around the world. This influx of visitors Cup matches, gaining national and international exposure. This
contributes to the growth of sports-related businesses and exposure can boost sales and brand recognition. e.g. Vimal-“ Bolo
services. Zubaan Kesari ”
 ICC Cricket World Cup 2023

TEMPORARY INFLATION CONCERNS

HOTEL & AIRLINE

CHARGES

During the tournament, people witnessed a drastic surge in

the Airline as well as Hotel Rentals due to unanticipated craze
of the sport.
The hotel rent of Ahmedabad before the finals were touching
the lakh mark and yet there were hardly any room which was
not booked.
Also, the Air Fare also surged 2-5 times during the
Tournament.
 Israel-Palestine War

CRUDE OIL
India imports 85% of its
energy, with the rise of
crude oil prices, may see PURCHASING POWER
an increase in the import
Dollar value increases
bill.
inadvertently with an
This could lead to the
increase in Crude Oil Prices.
worsening of the FISCAL
deficit and the widening
Crude Oil payments are
of the Current Account
made in USD, leading to
Deficit (CAD).
increased Dollar
Further impact observed
requirements inadvertently
on the industries like
reducing Rupee's value.
aviation, paints, tyres and
chemicals.

“Every $10 dollar rise in Brent crude

prices potentially widens the CAD by
0.5 per cent, “
Impact of Recent Events on India’s Business Environment | Group 6 Business Environment
 Israel-Palestine War

FISCAL AND CURRENT INFLATION

ACCOUNT DEFICIT

An increase in import prices A decrease in the value of the Rupee

would lead to greater would lead to an increase in
expenditure by the inflation.
Government. This is further expedited due to
This is done to curb the increasing demand and crude oil
effect on people. prices.
This could lead to the The sustained increase in prices is
worsening of the FISCAL expected to lead to lower aggregate
deficit and the widening of demand as households and firms are
the Current Account Deficit left with less disposable income to
(CAD). spend on non-energy goods.

Impact of Recent Events on India’s Business Environment | Group 6 Business Environment


MAJOR IMPACTS OF COVID-19 ON THE BUSINESS ENVIRONMENT IN INDIA
SUPPLY CHAIN DISRUPTIONS
India's extensive supply chains were severely disrupted due
to nationwide lockdowns and restrictions on movement. This
led to shortages of essential goods, increased production
costs, and delays in deliveries.
SHIFT TO REMOTE WORK
he pandemic accelerated the adoption of remote work
arrangements, as companies shifted to virtual meetings, online
collaboration tools, and digital communication channels. This
shift has had a significant impact on workplace dynamics,
productivity, and employee well-being..
Impact of Recent Events on India’s Business Environment | Group 6
COVID 19
DIGITAL TRANSFORMATION
The pandemic has also accelerated the digital transformation of
businesses, as companies have embraced e-commerce, online
marketing, and digital customer engagement strategies to adapt
to changing consumer behavior.
ECONOMIC DOWNTUREXPOSURE FOR LOCAL BRANDS
he pandemic triggered a global economic downturn, leading to
business closures, job losses, and reduced consumer spending. This
has had a significant impact on the profitability of businesses
particularly in industries like hospitality, retail, and tourism.
 COVID 19

SECTOR-SPECIFIC IMPACTS OF COVID-19

The hospitality and tourism sectors were among the worst

HOSPITALITY
hit, with hotels, restaurants, and travel agencies
AND TOURISM
experiencing significant revenue losses and job cuts due to
travel restrictions and lockdowns.

Manufacturing industries faced supply chain disruptions,

MANUFACTURING
labor shortages, and reduced demand, leading to production
slowdowns and job losses.

Brick-and-mortar retail stores faced challenges due to

RETAIL lockdowns and shifting consumer preferences towards
online shopping.

he IT and services sector experienced growth during the

IT AND SERVICE
pandemic, as demand for digital solutions increase

Impact of Recent Events on India’s Business Environment | Group 6 Business Environment

 COVID 19

STEPS AND MEASURES BY THE GOVERNMENT OF INDIA

The orders of self-isolation or self-quarantine

Travel restrictions
Sanitizing on a large scale
Disabling group gatherings
Closing inter-state borders
Screening at domestic and international airports
Banning entry of foreigners
Denial of any form of Visas to any country
Helping in the recovery of several positive cases
Increasing the number of testing centers
Lock-down of cities, districts, and even states
Shutting down schools, colleges, temples, malls, shopping centers, local bazaars, gymnasiums, cinema halls, and
various facilities of public gatherings
Providing work-from-home options for employees and much more.

Impact of Recent Events on India’s Business Environment | Group 6

 COP 27 and its impact on Indian economy
COP 27, or the 27th Conference of the Parties to the United
Nations Framework Convention on Climate Change, was held in
Sharm El-Sheikh, Egypt in November 2022. The conference was a
crucial opportunity for countries to come together and agree on
how to address climate change.
Commitments made at COP 27:
Net-zero emissions by 2070: India pledged to achieve net-
zero emissions by 2070, becoming one of the first major
economies to set such a target.
45% reduction in emissions intensity by 2030: India
committed to reducing the emissions intensity of its GDP by
45% from 2005 levels by 2030.
500 GW renewable energy capacity by 2030: India pledged
to increase its renewable energy capacity to 500 GW by
2030, nearly triple its current capacity.
33% forest cover: India committed to increasing its forest
cover to 33% of its land area.
The impact of COP 27 on the Indian economy:
Increased investment in renewable energy and clean technologies:
COP 27 is expected to attract an additional $2 trillion in
investment in renewable energy and clean technologies in India
over the next decade.
This investment is expected to create over 10 million new jobs
in the green economy in India.
Improved air quality and public health:
COP 27 is expected to lead to a significant improvement in air
quality in India, as the country transitions away from fossil fuels
and towards renewable energy sources.
This improvement in air quality is expected to save the lives of
over 1 million people in India by 2050.
Reduced reliance on fossil fuels:
COP 27 is expected to help India reduce its reliance on fossil
fuels by 50% by 2030.
This reduction in fossil fuel use is expected to save India over
$100 billion per year in energy costs.
ACCELERATING RENEWABLE ENERGY DEPLOYMENT:
Green Energy Corridors: Establishing six green energy corridors across the country to facilitate the
transmission of renewable energy.
Production-Linked Incentive (PLI) Scheme: Implementing a PLI scheme for solar manufacturing to boost
domestic production and reduce reliance on imports.
Rooftop Solar Schemes: Promoting rooftop solar installations through subsidies and net-metering policies.

PROMOTING ELECTRIC MOBILITY:

Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme: Providing financial
incentives for EV purchases and manufacturing.
Battery Manufacturing Policy: Promoting the establishment of battery manufacturing facilities in India to
address the supply chain constraints.
Charging Infrastructure Development: Investing in the development of charging infrastructure across the
country to support EV adoption.

ENHANCING ENERGY EFFICIENCY:

Energy Efficiency Standards and Labeling (EESL) Program: Implementing stringent energy efficiency
standards for appliances and labeling them to inform consumer choices.
Perform, Achieve and Trade (PAT) Scheme: Encouraging industries to improve energy efficiency and trade
energy savings certificates.
Smart Grid Initiatives: Promoting the adoption of smart grids to optimize energy distribution and reduce
losses.