It is close to 2 years since the devastating global pandemic brought literally everything around the world to a standstill and crippled many growing economies. Even the Indian economy had to bear the brunt. While investors were wary about investing in major sectors in the initial stages of FY 2021, fearing losses, these 4 sectors are showing promise and bringing back confidence in the markets.
Let’s look at the 4 industries that were underperforming earlier but now have started climbing the ladder of growth and have a bright future.
According to a report on India Brand Equity Foundation (IBEF), the Indian real estate industry will rise to Rs. 65,000 crore (US$ 9.30 billion) by 2040, up from Rs. 12,000 crore (US$ 1.72 billion) in 2019. India’s real estate market is predicted to grow to US$ 1 trillion by 2030, up from US$ 120 billion in 2017, and contribute 13% of the country’s GDP by 2025.
The Securities and Exchange Board of India (SEBI) has approved the Real Estate Investment Trust (REIT) platform, allowing all types of investors to participate in the Indian real estate market. In the next few years, it will offer a market potential worth Rs. 1.25 trillion (US$ 19.65 billion) in India.
Trade data suggests that India’s sugar production increased by 13% to 305.68 lakh tonnes in the first eight months of the current marketing year, owing primarily to stronger output in Maharashtra.
An India Ratings and Research (Ind-Ra) report cites that sugar mills have inked export contracts for around 4.5 million tonnes of the total quota of 6 million tonnes for SS21, despite a cut in subsidy to 5.8 per kg, following a drop in Q3FY21.
Furthermore, the increase in ethanol prices across categories will help the distillery segment’s profitability in Q4FY21.
Rising demand from the industrial and domestic sectors has been the primary driver of the Indian power sector’s expansion. The Indian industrial sector has grown greatly in recent years, as evidenced by the consistent rise in the index of industrial production (IIP) for the electrical domain from 126.6 in FY 2015 to 158.4 in FY 2020.
India has the highest rise in energy demand of any country in all of our scenarios to 2040, because of its growing economy, population, urbanisation, and industrialization.
Renewable energy sources like solar could attain grid parity considerably sooner than projected, thanks to fast falling capital costs and growing conventional power costs, especially when contrasted to high-cost fuels like LNG and imported coal.
This data by a Kearney report solidifies this fact.
When compared to airways and waterways, roadways are less affected by the COVID-19’s influence on the logistics sector, as trucking is viewed as a crucial source of transit during the pandemic. In India, the logistics business is severely fragmented, with many unorganised firms. As the quest is on to become more organised, thanks to the entry of many new freight startups, the Indian logistics market is estimated to reach $255 billion in 2022, rising at a CAGR of 10.5%.
The GST has also greatly simplified the transportation system. Looking ahead, the Indian truck market is expected to reach $17,870 million in deals by 2023, representing a CAGR of 12% from 2019 to 2024. Despite the fact that their figures have consistently shown erratic behaviour throughout the years, their growth has been astounding.
Over the years, the light-duty vehicle segment has enjoyed constant development. Following the productive performance of the small truck segment, the heavy-duty truck segment grew at a rate virtually equal to that of the light-duty truck segment in 2018-19.
These figures show great promise on how the Indian economy is getting back on its feet post-pandemic and is raring to expand and grow higher.
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