
Look at recent news headlines and you’ll find stories of how India is undergoing an economic boom right now, with investment in several key sectors at all-time highs.
It’s good news for the Indian government which has spearheaded an investment drive since the pandemic and could mean a boost in the standard of living for many of the sub-continent’s billion-strong population.
But which industries are the main drivers behind this spike in growth? Let’s dive in and take a closer look.
Healthcare industry
India’s demand for healthcare services is rising due to an aging population, increased chronic illnesses, and higher disposable income. The COVID-19 epidemic accelerated plans for an improved infrastructure, leading to additional investments.
The government’s Ayushman Bharat program, aiming to provide health insurance to over 100 million people, and an increased healthcare budget creates opportunities for investment and better services.
Also, the use of advanced technology, such as telemedicine and digital health platforms, adds to the industry’s growth potential.
Health insurance penetration among the population is on the rise as a result as people take advantage of better health coverage. This means more competition and product diversity between health providers, pushing up the overall value of the sector.
The IT and internet sector
Experts believe that India’s IT sector is set to be worth over $350 billion by 2025 thanks to its huge workforce of highly skilled workers and amenable business climate.
Software development and maintenance services are two key drivers behind this growth, but it also includes several prominent internet industries.
Internet penetration is also almost universal across the sub-continent. Whereas a decade ago, it may have been difficult for users to access high-speed broadband, figures show that most of the country now benefits from it.
Online news has taken off a big way, with over 50 million registered users recorded in 2023. Digital entertainment, including everything from streaming films to playing games, is on the up across the world, while related sites such as movie databases for film-lovers and no deposit casino bonus sites for gamblers help make up fast-growing internet sub-industries, and India is no different. Latest figures show the Indian digital entertainment industry to have grown by $20 billion over the last five years.
Cloud computing, AI, and the Internet of Things are new digital inventions set to add to India’s tech boom. The government has started several programs to encourage the development of these technologies and several Indian IT companies are making significant investments in these fields.
Rising demands for digital technology are projected to fuel India’s IT sector’s continued strong growth in the years to come.
Renewable energy sector
India aims to achieve 450 GW of renewable energy capacity by 2030, including small hydropower, biofuels, solar, and wind power.
The renewable energy industry has made significant strides, with government initiatives promoting solar energy through mega solar parks and rooftop programs, as well as encouraging wind energy projects.
Additional efforts in bioenergy and small hydropower contribute to make India’s renewable energy portfolio one of the fastest growing in the world.
Favorable government policies, decreasing technology costs, and growing demand for clean energy means the sector is expected to expand rapidly over the coming years.
Real estate market
India’s real estate market is facing legislative reforms and regulatory changes, which could be good news for growth.
Despite certain challenges, government initiatives, including the Affordable Housing Program and Real Estate Regulatory Authority (RERA), could be key drivers of progress.
The benefits of this are wide-ranging. Housing experts expect to see more demand for commercial real estate and a boom in affordable housing.
Real estate markets are notoriously hard to predict, though, so predictions of a housing boom should err on the side of caution. That said, the signs look promising for the sub-continent’s property sector.
Fast-moving consumer goods
Fast-moving consumer goods isn’t a sector that makes the headlines often, but rising disposable incomes and changing lifestyles across India could propel the industry upwards over the next five years.
But what classes as FMCG exactly? Well, a basic definition would describe them as everyday consumer products with a high turnover rate, such as packaged foods, beverages, toiletries, and cleaning supplies. They all share the characteristic of being purchased quickly and frequently.
Consumer demand for healthy and organic products is another notable trend within this sector, and Indian FMCG companies have invest a lot in research and development for this field.
The industry has also embraced e-commerce and digital marketing, something reflected through government programs like Make in India and National Food Processing Policy.
Keep an eye on the FMCG market as increased consumer demand and supportive governmental regulations take hold.
Automobile sector
The Indian automobile industry is among the world’s largest, contributing 7% to the national GDP and trailing only China and the United States in terms of size.
The shift toward electric vehicles is one big challenge the industry faces going into 2024, but it’s in a good position to embrace it, with the rise in disposable income and infrastructural growth supporting it.
Government initiatives like the Faster Adoption and Manufacture of Electric Vehicles (FAME) plan and the Production Linked Incentive (PLI) program are set to boost the industry.
While the pace of growth within this industry isn’t as breakneck as other industries, expect to see it contribute to a booming Indian economy in the mid 2020s.
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