Covid Learnings from The Cost Behaviour of Indian Industry

Abstract

The article ventures to perceive the trend of revenue & cost behaviour of Indian Industry on the basis of the consolidated financial results of non-government non-financial public limited companies for the years from 2009-10 to 2018-19. Thereafter, an attempt is made to project the indicative performance of the Indian Industry at various levels of feasible capacity.

The article infers that the Break Even Point of the Indian Industry lies at 70.00% of the existing feasible capacity, and at a value of production of Rs. 42.00 lakh crores. Impliedly, this construes to be the point of survival for the Indian Industry.

The article moves on to suggest element wise action points considered vital in maintaining the tempo of survival during COVID trance and due revival thereafter. The suggestions, if taken forward in letter and spirit, are bound to facilitate achievement of significant productivity improvements and ample cost reductions beyond the simple perceptions.