A plethora of business sectors in India are experiencing raping growth since the last few years. Increasing urbanization and economic policies implemented by the government are few of the catalysts that led to this exponential growth. If you’re looking to invest in one of these sectors, it is essential to keep yourself updated on the same from time to time. Here we discuss a few sectors that are currently some of the best performing ones in our country.
From a humble contribution of 1.2% to India’s GDP in 1998, to 7.7% in 2017, the IT sector in India has come a long way. In the last 2 years alone, India’s information Technology sector grew to more than US$ 165 billion. It also accounted for more than 53% share in the US global services business in the last two years. The current domain that is taking over Indian IT investments is Artificial Intelligence. Most companies are said to increase investment in AI by at least 8% in the coming year. Furthermore, the NITI Aayog is in the process of implementing programs to help businesses leverage AI better.
Tourism and Hospitality:
The increase in middle-class population and urbanization also means a boost in the tourism and hospitality sectors. Both domestic and international tourists contribute to the growth of this sector. In the last 4 years, around 15 million jobs have been generated by the tourism industry. It is predicated that by the next decade, the tourism and hospitality industry in India will generate revenue of nearly US$ 50 billion. Currently, this sector contributes 7.5% to the GDP of India. Initiatives like the e-Visa scheme will further help develop the tourism and hospitality sectors in the country.
- Retail: India’s retail sector is one of the fastest budding sectors globally. Currently, the industry contributes around 10% to the nation’s GDP. An approximate 8% of the country’s workforce is employed in the retail sector. It is predicated that the retail sector in India will reach around US$ 1100 billion by 2021 (i.e. a near 60% growth). The biggest catalyst in the growth of this industry is
- E-commerce: Increase per capita income is another factor for the said growth. The shift from unorganized to organized retail is taking place right now, mainly owing to tax changes.
Infrastructure plays a key role in India’s overall development and is one of the top performing sectors in the country. This sector includes electricity, telecom, sewage, water supply, roads, airports, railways ports and urban infrastructure such as housing. International investors too are taking interest in Indian infrastructure development and coming up with initiatives for the same. For instance, Japan has collaborated with India in developing the infrastructure of the North-eastern states of the country. Private sectors investment is vital for the improvement of Indian infrastructure and there is a huge demand for the same. The government has taken the initiative for certain financial measures to boost private investment in infrastructure.
With the rise of mobile banking and digital payments, the banking sector in India is rising to new heights. There are more than 21 private sector banks and about 1, 00,000 rural sector banks in the country. Many businesses are investing in rural banking as it is said to be growing rapidly. Fintech companies are on the rise, thanks to internet banking and advancements in financial services. Although certain liquidity constraints on NBFIs might be a problem to the banking system, the overall banking system is in the country is quite stable. There are plenty of career opportunities as well as investment opportunities in the Indian banking sector.
Education and Training:
Ours is a young country! More than 50% of our population is under the age of 25. This makes the education and training sector flourish in Indian. India has the greatest number of school-going students in the world! After the United States, India is the second-largest market for online learning in the world. Also, many educational institutions are being built by the government (IIMs and IITs) to boost the education sector. It is predicted that the education and training sector will reach US$100 billion by 2021. This is a safe bet for investing, since the demand is so high. Along with government-backed organizations and initiatives, the private sector plays an important role in the education and training industry in the country.
India is becoming one of the fastest growing economies in the world due to the progress of these sectors. Checking long-term stock prices and analyzing Nifty Indexes will help one decide which sector is growing and which one to invest in. Apart from the above-mentioned sectors, industries like trading and automobiles are also fast-growing sectors and two of the many best-performing ones in the country.