Know which Sector Will Grow in Future in India: The NIFTY IT Index is one of the best-performing stock indices in India. Hindsight shows that if an investor invested Rs. 1,00,000 in Infosys in 2012 at Rs. 297 per share, today in 2022 that investment would be worth about Rs. 4,87,037 today at Rs. 1,446.5 per share. That is a 380% return on investment.
Sectors like IT, there are other potential sectors that show growth and could give multifold returns in the near future. EV is one such industry.
Stricter emission norms, rising fuel prices, and covid-19 have driven the fuel prices in India through the roof. This led to the emergence of an alternative – Electric Vehicles.
Which Sector Will Grow in Future in India? Sectors to Watch Out For!
So what are some of these emerging industries in India that could take over in the future? Read ahead to find out.
Emerging Sectors in India #1 – Fintech
Taking traditional finance and modern information technology together, the new-age solution of Fintech was born. According to IIFR, there are 2,000 fintech companies in India alone. Easy funding, infrastructure, and an open-minded workforce are the key drivers behind this expansion of Fintech in India.
Solutions like cloud computing, artificial intelligence, and UPI have revolutionized how we view finance today. It’s hard to look back at the time when people had to wait in lines at ATMs, write physical checks for payments and disrupt everyday life just to visit their banks and solve an issue.
Some notable fintech companies in India presently are –
- CRED
- Paytm
- Zerodha
- Smallcase
- Policybazaar
- Lendingkart
Emerging Sectors in India #2 – EV (Electric Vehicle)
EV or Electric Vehicles – the new age of mobility. For decades, environmentalists and green organizations have been warning the public and governments that fossil fuels are not sustainable.
The global rise in temperature, and emission of odorless carbons into the atmosphere, combined with pollution formed the perfect catalyst for irreversible climate change.
India has the third-highest carbon emissions (666 Mln tonnes) after the US ( 1,286 mln tonnes)and China ( 2,912 mln tonnes), which is a cause for concern.
India’s goal of bringing emissions down by 30-35% by 2030 is realistically achievable through the use of EVs. Some emerging EV manufacturers in India are –
- Tata Motors
- Ather Energy
- Bajaj Auto
- Okinawa
Emerging Sectors in India #3 – Green Energy
Green energy is the shift from depending on coal and oil to sustainable energy sources like hydroelectric power and solar energy. Already, companies like Solar City, started by tech mogul and the world’s richest man, Elon Musk, have demonstrated the practicality of using solar energy in residential homes.
In India, states that have power deficits can set up solar farms to meet their yearly power demands. A concerning fact about coal incineration in India is that it contributes to 84% of global coal consumption.
Quick Read: Top EV Charging Companies in India 2022!
40% of India’s electricity is met by coal burning, which is a huge contributor to global warming.
To meet India’s 2030 emission goals, it has to switch from coal and fossil-based fuels to natural gas and solar energy.
Some of the renewable energy companies in India are –
- Tata Power
- Adani Green Energy
- Websol Energy System
- Borosil Renewable
- GAIL (Gas Authority of India Ltd)
- JSW Energy
Emerging Sectors in India #4 – Artificial Intelligence
AI is the simulation of human intelligence through machines that are programmed to think like humans. Traits like reasoning and logic are the end goals of AI in the future. Repetitive and monotonous tasks are predicted to be overtaken by artificial intelligence and automation. Already there are tech-based startups such as Adverb who have created robots that can operate autonomously in warehouses.
Some leading companies in the field of artificial intelligence are –
- Tata Elxsi
- Persistent Systems
- Tech Mahindra
- Happiest Minds Technologies
- Honeywell Automation India
Emerging Sectors in India #5 – Drone Tech
According to the civil aviation Minister, Jyotiraditya Scindia, India will need 100,000 drone pilots in the near future. Estimates show that India’s drone industry will hit a market cap of $10 billion dollars by 2026. The Government of India aims to make India the drone hub of the world by 2030.
Some industries where drones are already used are –
Agriculture – Industrial drones are already being used as crop dusters for farmland over traditional propeller planes.
Defense – India is expected to use drones for surveillance and scouting, especially in difficult terrain not accessible by people. Life-threatening operations such as bomb detection and border patrol could be replaced with drones.
Delivery – Tech Giants such as Amazon have already tested out the use of drones for delivery in the US. Zomato is also in talks of implementing drone delivery of food in the near future.
Also Read: Best Robotics & AI Stocks in India – Market Overview
Drone companies currently making headlines –
- Paras Aerospace
- Hindustan Aeronautics Ltd
- Zen Technologies
- RattanIndia Enterprises
- Aarav Unmanned Systems
- Skylark Drones
In Closing
The key to making a long-term investment is foresight. By observing new opportunities, your investment is more likely to grow. A business can be operational for decades only if it innovates its products and services.
The industries of yesteryear no longer rule the stock markets today. Staying ahead of the curve and keeping yourself informed could be the difference between a successful investor and an average speculator.
Hope you found this article Which Sector Will Grow in Future in India interesting. Till next time. If you’re new to the stock market and don’t know where to start, there are a few good online courses you can take. FinGrad has introduced a value investing course in educating you on analyzing and evaluating different firms.
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