Post-COVID Tendering in India: Insights & Recovery

The initial months of 2020 were tumultuous, with the COVID-19 pandemic significantly impacting Indian industries. Real estate, manufacturing, and construction sectors were disrupted, facing severe financial losses. By March, businesses were grappling with the pandemic's impact. However, phased lockdown easing from June allowed industries to strategize their return.

Impact of COVID-19 on Indian Industries

The World Bank projected a 2.5% drop in India's GDP due to the pandemic. This economic downturn affected per capita incomes and pushed millions into poverty. Spill-overs from weak global growth and financial stress further hampered activities.

Tendering Process Changes After COVID-19

TenderX's data highlights that tenders over 1 crore constituted 6% of the total, while tenders between 10 lacs and 1 crore represented 24%, mirroring the second half of 2019. Tenders below 10 lacs were 30% in June 2020, down from 46% in December 2019. The economic slowdown saw tender submissions drop drastically in April, but a rebound began in June with 2 lakh tenders, and July marked a positive trend with 6.2 million tenders.

SME Challenges During COVID-19

SMEs faced liquidity issues, demand shortages, raw material scarcities, and manpower deficits. To combat these, SMEs should adopt self-assessment, manage resources efficiently, and employ ROI-driven marketing practices. Government schemes and strategic financial planning can aid in overcoming these challenges.

Post-COVID Economic Recovery Strategies

The government's "Atmanirbhar Bharat" initiative provided SMEs with numerous opportunities. Boycotting Chinese goods aligned with fostering a digital revolution. Digital media offers an economical and accessible platform for SMEs, aiding their recovery and growth.

Indian State-wise Tender Distribution 2020

Maharashtra and Uttar Pradesh led in tender distribution, with 14% and 12% contributions respectively. Karnataka, Rajasthan, and West Bengal followed. The Ministry of Railways and Public Works Department were prominent in tender releases, showcasing a shift in authority-level dynamics.

Digital Transformation for Indian SMEs

Digitally mature SMBs benefit from improved revenue and productivity, as per a study by IDC and Cisco. E-procurement software is crucial, offering streamlined tender processes. TenderX supports SMEs in their digital journey, hosting tenders across 15000+ authorities in 100+ categories.

Conclusion

SMEs can leverage technology and government support to navigate the post-COVID landscape. Explore more about how TenderX can assist your business at TenderX.