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Writer's pictureDaniel Lee

6 Indian Industries you should look out for

In this article, I’ll be giving you a snapshot of the industries that are set to benefit from India’s growth story moving forward. You can read more about India’s SWOT here.


1. Labour intensive and High-tech Manufacturing

The manufacturing industry in India is set to explode from the following drivers, for

  • Labour-intensive manufacturing, it will be driven by labour cost advantages as compared to countries like China

  • High-tech manufacturing, it will be driven by India’s existing technology capabilities and cost advantages.

Read more about India's manufacturing industry here.


2. Clean renewable energy

Already the world’s fourth most attractive renewable energy market, India’s renewable energy will grow further from the following drivers:

  • Strategic location and access to an abundance of sunlight and wind

  • An exponential increase in demand, both global and local, for energy

  • Increasing shift and awareness towards renewable energy


Read more about India's clean renewable energy industry here.


3. Pharmaceutical and medical devices

Already a largest global provider, India’s pharmaceutical and medical industry growth will be driven by:

  • Increase in global demand – driven by the aging population trend in developed countries

  • Increase in local demand – driven by local private healthcare consumption

  • An improving supply chain infrastructure providing operating and cost-efficiency


Read more about India's pharmaceutical industry here.


4. Private Health Care industry

Healthcare has become one of India’s largest sector, with the branding of: “First world treatment at third-world prices”, the private health care industry growth will be driven by:

  • Poor existing public health care infrastructure

  • Increasing in global demand from medical tourism due to cost differentials

  • Increase in local demand through growing income and spending power as well as an increase in adoption of insurance

Read more about India's private health care industry here.


5. Fast Moving Consumer Goods industry

Fast moving consumer goods (FMCG) are the 4th largest sector in the Indian economy, moving forward, India’s FMCG growth will be driven by:

  • Increase in demand from the increase in middle-income families

  • Easier access as a result of an improved supply chain

  • Growing awareness and changing lifestyle from traditional road stores to malls


Read more about India's FMCG industry here.

6. Tourism & hospitality Industry

Though not as significant as the other industry, the tourism and hospitality industry is set to grow moving forward as a result of derived demand, both domestic and international, for

  • Health care services – cost advantages

  • Business activities (Meetings, Incentive, Convention, Exhibits)

  • Leisure tourism – attracted by India’s diverse culture and rich history

Read more about India's tourism and hospitality industry here.

Long story short

Following China’s footstep, India is positioned to benefit from the rise of the Asia Century.


Given the growth potential, India may provide you with the investments you need to achieve the much-needed returns for your portfolio.


However, investing in India may or may not be suitable for you given your risk-reward needs, investment time horizon and financial plans.


Naturally speaking, that is if you have a clear understanding of your own investment objectives and financial plans in the very first place.


If you are reading this and would like to kick start your retirement or investment planning, you can reach out to me here and I’ll help you make sense of the options available at your current stage.


Do remember to share this article and subscribe to keep yourself up to date with investment insight.


Alternatively, you can join my telegram channel to receive first hand updates: https://t.me/joinchat/AAAAAFVEzUiPA4IgQEm4vA

 

Disclaimer:

This article is meant to be the opinion of the author and is for information purposes only.

This article should not be seen as a financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore



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