Hopefully, the harshest effects of the coronavirus have already been felt by the Indian economy. We can now start concentrating on other significant facets of our existence as the number of cases declines daily and the Sensex and Nifty rise above pre-covid levels.
Fortunately, India is on the road to recovery and, as an emerging market, is steadily regaining the interest of wealthier nations. Today, we’ll look at some of India’s potential fast-growing industries during the coming five years. Here, we’ll talk about the industries
- E-Commerce Sector:
The last few months have been the best for e-commerce because the requirements for social distance have made it possible for businesses to further increase their presence. In reality, in order to establish themselves before it’s too late, many firms are already moving to a retail format. This may result in a long-lasting shift in customer attitudes and behaviour regarding online shopping. In addition, many significant players, including Reliance, are attempting to enter the market.
IndiaMart, Reliance (JioMart B2C), Infibeam, Justdial, Infoedge, IntraSoft Technologies, and others are a few of the well-known enterprises operating in e-commerce or related industries that are listed on the Indian stock exchange.
Healthcare and Pharma Sector: People have been compelled by COVID-19 to practise greater cleanliness, and it is anticipated that this behaviour will continue after the Covid-19 era. The populace started pursuing better lifestyles even before COVID-19, which spurred the adoption of various technical developments in the nation.
Increased nutrient consumption, acceptance of mental health, and the creation of businesses like CureFit, PharmEasy, Practo, etc. have all contributed to some well-known breakthroughs. COVID-19 has gone one step further to highlight the negative aspects of the sector, putting pressure on the medical sector to improve accessibility, availability, and affordability.
In 2022, it is anticipated that the Indian healthcare market will be worth $372 billion. The country’s expanding population and the expected rise in life expectancy as a result of sector improvements are two variables that are anticipated to support the sector’s growth.The healthcare industry has had several challenges over the last two years, but they have all been surmounted with the help of cutting-edge technical solutions and skilled personnel. Since the industry is now organised and well-equipped, the future is bright. By 2022, the Indian healthcare sector is expected to be worth $372 billion, according to Invest India. Furthermore, the hospital sector in India provides 80% of the country’s healthcare spending and is anticipated to grow by 16–17% to $132.84 billion by 2022. It is without a doubt one of the industries in India that is expanding the quickest.
Ed-Tech Sector: Ed-tech is a term used to describe how technology is being used to better the education sector. One of the global industries with the quickest growth is education technology. Supporting their children’s academic needs is one way parents can contribute to their success. They are prepared to spend more on services they think will give their kids an advantage.
The sector benefits from the atmosphere in India, where education is valued culturally. Additionally, the country’s economic expansion calls for increased skill development. The use of more effective digital tools and processes by educators and students has become crucial as a result of COVID-19, which has further stimulated the expansion of the ed-tech industry. More than $1.8 billion has been invested in Indian ed-tech firms between 2014 and 2019. Similar to Byju’s, numerous businesses have experienced rapid development in recent years.
One of the pillars of progress that has enabled the economy to expand enormously is infrastructure. The sector comprises initiatives like highways and expressways, railroads, aviation, shipping, and power or oil & gas projects. The infrastructure industry, however, has been greatly impacted by the pandemic because it depends so largely on manpower.
However, despite this, long-term investors in the sector can still anticipate significant growth. Especially now that the Make in India effort is gaining traction as businesses search for alternatives in Asia. The sector will experience growth thanks to the national and state governments’ ambitious ambitions for smart cities and increased attention to infrastructure development.
Fintech Sector: Fintech refers to businesses that employ technology to offer consumers or corporations financial services. Although there are many competitors in the Indian market, a large section of the population still needs to be attracted. Digital payments, as well as access to banking, insurance, and stock markets, are all part of the fintech sector.
Paytm, Razorpay, Google Pay, Zerodha, PhonePe, MobiKwik, PayU, ETMoney, PolicyBazaar, Lendingkart, Freecharge, and Whatsapp are a few well-known Fintech firms that have lately entered the market. The Fintech industry earned $3.18 billion in funding in 2020, growing to become the second-largest fin-tech cluster on the planet. The digitalization of the economy through smartphones has been one of the elements causing this sector’s rapid rise. Due to the global epidemic, FinTech is now essential for all businesses to survive in these trying times. Due to the desire for the fluidity of the financial sector made possible by cutting-edge technology, fintech solutions were quickly adopted. FinTech’s acceptance occurred in 2020 and 2021, but its growth, fueled by ongoing innovation and revolution, will occur in 2022 and afterward.
Renewable Energy Sector:Since everyone is aware that the environment is becoming worse, the Paris Agreement places tremendous worldwide pressure on all nations to cut their carbon emissions. A very attractive market for investors is renewable energy. Sales of solar panels and other renewable energy equipment are at an all-time high, and renewable electricity is getting more and more affordable. India aims to install 175 gigawatts of renewable energy by the end of 2022.
The Renewable Energy Investment Promotion and Felicitation Board (REIPFB) was established by the Ministry of Power to offer businesses and investors one-stop support for project development and new investment in India’s renewable energy sector. Additionally, over $79 billion has been invested in renewable energy in India over the past seven years, leading to a more than 2.5-fold increase in installed renewable energy capacity, or more than 141 gigawatts. Between April and July 2021, investments in India’s renewable energy sector totaled $6.6 billion, shattering the previous high of $6.4 billion from FY2020–21. After two years of uncertainty, this year is predicted to be a boom year for India’s renewable energy sector. With an expected investment of over USD 15 billion and a concentration on solar equipment, manufacturing, green hydrogen, and reaching the challenging 175 GW renewable power target, it is one of India’s fastest-growing sectors. India now has an installed capacity for producing 150GW of renewable energy, with a goal of 175GW by 2022.
Automobile Sector: To take advantage of one of the world’s fastest expanding economies, major multinational automakers are entering India and establishing production facilities.
Indian automakers are also releasing new models, facelift versions, etc. to meet consumer demand, including Tata Motors Ltd., Maruti Suzuki India Ltd., and Eicher Motors, whose sales of its own Royal Enfield motorcycle have been rising.
The preference for four-wheelers has changed as a result of rising disposable cash in the hands of individuals. The expansion of the auto industry will also result in the expansion of the industry for auto parts. After the COVID crisis, a sector that now makes up almost 7% of the country’s GDP is predicted to expand by 12%. These businesses, which include development, manufacture, design, and car sales, are all included in the automotive sector. The vehicle industry is predicted to grow by more than 3.5% by this year and will soon see a significant boost. As a result, the Indian market has a chance to overtake the global market for automobiles in the next ten years.
Real Estate: The real estate sector is beginning to revive and is anticipated to experience a boom in the coming months. The average income volume is probably going to be higher than the average quarterly sales from the year before Covid thanks to strong end-user demand and reasonable market conditions. Experts claim that online registrations and digital marketing will help people deal with the crisis. Key real estate markets like Bangalore, Mumbai, Hyderabad, Pune, and other cities have already attained the development levels.
It makes sense for an intelligent investor to invest in India’s growing sectors for long-term investments. However, there is an important lesson to be learned here: not every growing sector will provide incredible returns. The best approach to selecting the best sectors in India for investment is to diversify. Allocate funds to various sectors that you believe will grow, reducing risk and ensuring that you do not miss out on any booming sectors.
In this post, we covered the list of India’s fast-growing industries that investors should be aware of. The question of whether certain industries should stick with the recently established regulations and pave the way for the future as the economy starts to recover is put to the test.
The aforementioned areas will undoubtedly experience growth, but it won’t be restricted to them alone.