this article was in response to a forward message at madukkurians group titled *Economy is not struggling…the business models are changing.* The original forward message is attached below this artice.
by Mr. M. Abdul Hakeem (Poovanam-Madukkur)
With reference to the above,I would like to share the following realistic situation prevailing in our country. Basically, the pulses of economy is measurable by the health of CORE SECTORS such as Automobiles,MSME (Small&Medium Enterprises) Textiles, Infrastructre, Reality & Farm Sector. All the above Sectors are not up to the level of activity proliferation at present. Online Trading affects severly the Small Traders which lead to closure of shops/Malls/Hyper Markets etc, as a result jobless situation arises. Ola/Uber proliferation can not match the supply chain as the incremental demand is nominal. In view of shut down of many Auto Ancillary Units due to poor/no demand, lakhs of people already lost their jobs, as a result banks’ fundings to these units from the recovery point of view is extremely challenging which leads to Liquidity Crunch . Unfavorable /untoward climatic conditions affected farm production. Purchasing power is dramatically pruned,as a result DEMAND & SUPPLY CHAIN is drastically broken and the gap is widening. Hoarding and Speculation in the Bullion & Stock market lead to bubbling for puncture at any time.Under such circumstances, one can introspect as to Economy is struggling or booming
ABOVE WAS THE REPLY TO FORWARDED ARTICLE AS BELOW:
*Economy is not struggling…the business models are changing.
*Below is a very interesting insight :
Often heard nowadays that ” _indian Economy is struggling_ “.
Sit back & dispassionately think “is the economy really struggling *or* are business models struggling ?
Some food for thought:
1) Car sales are going down… *but Ola / Uber are rising.*
2) Restaurants are going empty… *but home delivery is rising*
3) Tuition classes are not getting students *but online studying is rising*
4) Traders are struggling *but online market sites and reference based direct selling are breaking all records in sales.*
5) Old commission based businesses are snivelling… *but online services, at low cost, are finding takers.*
6) Cell phone bills have reduced & *internet penetration is increasing.*
7) Stable (read “Govt Jobs”) are dwindling *but “Start up” jobs offering equity & Flexi work time are expanding.*
8) Jobs seekers are reducing but *job creaters are on the rise*. Working 40 hrs a week for 40 years is trend of past. *Working for few years and spending quality time in contributing to society is the trend.*
If truth be told what we are experiencing is a transition phase.
& Any transition is painful for the “well set”…… “the masters of the past”.
*_It’s challenging for those who’s business models are based on ancient data…._*
It’s a mystery for those who have never looked beyond traditional methods or have assiduously resisted change of any kind.
*Economy is not struggling…the business models are changing.*