‘Economic recovery to take at least 2-3 quarters’: Shailendra Singh
New Delhi: The situation during the ongoing COVID-19 will be grim and the economic recovery thereafter will also take time as private equity experts fear that more people will die from hunger than pandemic in India most people under estimating the gravity and period of impact, which at the very least will take two to three quarters.
At a private equity webinar, Shailendra Singh, Managing Director at Sequoia Capital flagged that fear that more people will die from hunger than pandemic in India.
He added that most people are under estimating gravity and the period of impact, which will be the at the very least two to three quarters.
Singh said they are asking every portfolio co to re validate the 5 critical assumptions their business hinges on. “You will be surprised that how many of them have actually changed/ could change in long run (Zivame),” he added. They have also advised companies to look at adjacent markets or alternative business models.
Singh said that economic Recovery will not start before Q3/Q4 of this financial year. Most countries will move manufacturing towards domestic markets especially in healthcare & R&D and reliance on China will go down.
Anuj Ranjan of Brookfield said that cycles are inevitable, it will come back along with economic recovery but will take time. After 9/11, no-one thought they would ever get on a plane again. But they did and it was much stronger than before, but in 22 months. Air travel started but the security changed forever.