However, as is evident now, we were caught unawares. Mutated strain of the virus took India in its stride as we were yet to work out a robust vaccination strategy. To curb the spread and manage the health emergency getting out of control in view of paucity of beds, oxygen and ventilators, a large number of states-imposed lockdowns and other restrictions which continue till date. 

As is normal under such circumstances, the economy bears the brunt and that is what seems to have happened. The fragile economic recovery seen in the second half of FY21 seems to have gone derailed. Consumer confidence has hit a new low as shown in a recent survey. Different rating agencies and multilateral organizations have downwardly revised the growth projections for the current fiscal year. From a bullish 11-13% growth (in view of base effect), the projections are now for growths in single digits only.

Needless to say, the pitch for economic revival is queered.  But, curiously, as Covid infections come off from the peak levels and the recovery rates go up, a new kind of confidence is building up. The infection rates are coming down with as much alacrity as they had peaked.

Certainly, there is no room for any complacency as premonitions of a third wave have already been made. However, the vaccination strategy to inoculate a large number of Indians by the end of the year holds much hope. It has been observed that those countries that have already inoculated over 50% of their population have witnessed much less morbidity and mortality rates.

What also holds out hope are a range of high frequency indicators which show the resilience of the Indian economy and the entrepreneurship that shines through whenever an opportunity is provided. The economic growth in the fourth quarter of last fiscal has been better than expected. From a contraction of 24.4% and 7.4% in the first and second quarters, the economy turned around in the third one with 0.5% growth and ended the year with 1.6% growth in Q4.

There are a range of other indicators too. Industrial performance measured by IIP grew by 22.3 percent in March. Merchandise exports grew by 197 percent in April. The output of eight core infrastructure sectors grew by robust 7% in March. Manufacturing PMI has remained at a high of over 55 in March and April. GST revenue collection set a new record of Rs. 1.4 lakh crore in April.

If the tyre  production data for FY21, as released recently, is anything to go by, Tyre Industry will continue to put the wheels of economy in motion against all odds. No doubt, Tyre Industry's overall numbers are down in FY21. However when looked closely, there is ample evidence that points to the resilience  in the sector. Truck & Bus (T&B) tyre production, the bellwether of economy has turned in better performance in FY21 over FY20. And this despite the fact that April’20 was a washout in view of nationwide lockdown. Both T&B and Passenger Car tyre production touched significantly higher figures in March this year with T&B tyre production crossing 20 lakh numbers, a historic high.

FY21 will also go down as a landmark year when Radial Truck & Bus tyre production equalled that of Bias tyre production. Tyre exports from India have charted an upward trajectory in the second half of previous fiscal as the stability was achieved in the exports markets.

Forecast of a normal monsoon (third in a row) and the upcoming festive season can provide much-needed impetus to the economy if vaccination drive accelerates and Covid appropriate measures are followed strictly.

No doubt, the situation is still in a flux, and it is too nascent to gauge the true impact of the second wave on economic growth.  But ramping up the vaccination drive and inoculating the entire adult population as early as possible will help.

And there is a major shift again in the vaccination policy. As this column gets on the editor’s desk, the federal government has decided to provide free coronavirus vaccines to states for inoculation of all above the age of 18.

FY 21 could not live up to the expectations that most Indians had. Hope the next year will. (TT)

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A new partnership between Pirelli and Aston Martin will integrate Pirelli's pioneering Cyber Tyre technology into the British ultra-luxury brand's future vehicles. This system represents a significant technological advancement as the first of its kind capable of gathering real-time data from sensors embedded directly within the tyre's tread. These sensors feed information to Pirelli's proprietary software and algorithms, which then communicate seamlessly with the vehicle's electronic architecture.

This integration, developed in cooperation with Bosch Engineering, allows the car's main dynamic control systems, including ESP, ABS and traction control, to receive and utilise a comprehensive set of precise tyre data that was previously unavailable. By processing this information, an electronic control unit can optimise the vehicle's dynamics, enhancing both performance and safety. The collaboration underscores a shared commitment to innovation in the ultra-luxury performance sector. The adoption of the Cyber Tyre system marks a notable step forward in Aston Martin's pursuit of class-leading capabilities, leveraging detailed, real-time insights to refine the driving experience.

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The latest data from the German rubber industry highlights severe challenges at the domestic location are compelling companies to fulfil local demand primarily through their foreign production facilities, according to the German Rubber Industry Association (wdk).

A recent business climate index indicates a slight improvement in industry sentiment for the second half of 2025. However, wdk President Michael Klein sharply contradicts this optimism, stating that the data reveals a far grimmer reality. He emphasises that critical performance indicators – including revenue, sales, employment and production – are all showing deeply negative results for the domestic market, underscoring a troubling exodus of manufacturing from its core German base.

Klein has acknowledged the federal government's pledge to launch an ‘autumn of reforms’ as a positive signal. Nevertheless, he insists these measures must urgently deliver tangible relief and cost reductions for industrial companies of all sizes. He argues that what is needed most is a decisive and rapid approach to the promised reduction in bureaucracy, stressing that only verifiable results, not further promises, will count towards improving the competitiveness of the German industrial location.

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Chinese tyre manufacturer Sailun Group has begun construction on a new USD-1-billion tyre facility in Egypt. The plant is situated within the Sokhna integrated industrial zone, part of the Suez Canal Economic Zone (SCZONE). This investment, one of the largest Chinese industrial projects in Egypt, was officially launched at a ceremony attended by SCZONE General Authority Chairperson Walid Gamal El-Din.

The expansive 350,000-square-metre factory will be developed in three phases over a three-year period. The initial phase is scheduled to become operational in 2026, with a planned production capacity of three million passenger car tyres and 600,000 truck and bus tyres annually. This first stage is expected to generate 1,500 new jobs. Upon full completion, the facility's total output is projected to surpass ten million tyres each year.

As a global leader in tyre manufacturing with an extensive international sales network, Sailun Group will utilise this new factory as a strategic hub. The facility is designed to meet rising demand within the local Egyptian market while also creating substantial opportunities for export to regional and international markets.

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With the rise of electric vehicles reducing exhaust emissions, attention is shifting to non-exhaust emission like Tyre and Road Wear Particles (TRWP). These microscopic particles, generated from tyre and road surface friction, are a growing environmental concern and will be addressed in the upcoming Euro 7 emissions standard. To tackle this challenge, Nynas has joined a major research consortium coordinated by the Royal Institute of Technology (KTH), alongside Volvo Cars, Scania and the Karolinska Institute.

The project aims to close a significant scientific knowledge gap by thoroughly investigating the formation, characteristics and environmental impact of TRWP. Nynas contributes a unique dual perspective to this interdisciplinary effort, bringing deep expertise in both tyre rubber compounds and bitumen-based road materials. Pär Nyman, Technical Manager – Tyre & Chemical Industries, Nynas, represents the company in the project alongside the company’s Chief Scientist, Dr Xiaohu Lu, who brings extensive expertise in bitumen and asphalt to the collaboration. A key focus will be understanding how different materials contribute to wear mechanisms.

The research scope extends beyond particle analysis to include measuring the rolling resistance of various tyre and bitumen combinations, a parameter directly linked to vehicle energy efficiency and greenhouse gas emissions. By uniting industry and academia, this collaboration is poised to drive innovation and set new benchmarks in sustainable mobility research.

Pär Nyman, Technical Manager – Tyre & Chemical Industries, Nynas, said, “While Sweden lacks domestic tyre manufacturers, Nynas' research capabilities fill that gap by providing foundational insight into the chemistry and physics behind TRWP generation. Nynas' rubber and asphalt labs are at the heart of this contribution. One of the core insights driving this initiative is that wear particles cannot be fully understood by analysing tyres or roads in isolation. It's the interaction – the system – that matters. By studying both tyre composition and road structure, the project aims to develop a holistic view of TRWP formation, dispersion and toxicity. At Nynas, we are excited to contribute our unique knowledge of materials to help solve an important challenge for both the environment and human health. Through collaboration and scientific inquiry, we aim to pave the way for cleaner roads and cleaner air – one particle at a time.”

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