In 2021 and beyond, India has a lot to look forward to. There’s economic growth happening everywhere across this vast country and for both natural-born citizens and foreign investors, there are numerous opportunities. In many ways, India is looking to compete on the global stage as well as bolster the domestic industries already in place. These are some of the sectors that are poised to see the most growth in India over the next decade.
The Energy Industry
India has the advantage of having one of the largest populations in the world. With over 1.3 billion residents, the energy needs of this densely populated country are enormous. While in the past, these energy needs were mainly supported by natural gas, oil, or coal, the government has since made a strong push towards renewable sources of energy.
By utilizing a combination of solar energy, wind power, hydropower, and biomass, the government of India plans to expand the electricity output for the country from 370 gigawatts to nearly 600 gigawatts by 2022. This massive increase would suggest that businesses and jobs in this sector would grow immensely as well.
Horse Breeding and Racing
The roots of the modern horse breeding and racing industry can be traced back over 300 years. While this means that the industry is well established, it certainly is not at the level that it once was. However, in recent years, both horse breeding and racing have seen a resurgence. Similar trends can also be seen in many countries globally, especially in the US. Fans use technology to keep up on the latest news, odds, and read up on free picks for the upcoming races. The same can be said in India where the industry has been picking up the pace after several decades of dwindling.
Here in India, the reasons for this industry’s growth are clear. Over time, favorable tax legislation regarding betting, importing and exporting breeding horses, and racetracks have been put into place. As the horse racing industry in the Middle East expands every year, countries like Qatar, UAE, and Kuwait import thousands of these thoroughbreds to meet their growing demands. This all equates to rich opportunities for India to capitalize on and at the moment, the Indian government seems to be supporting this market.
Manufacturing
One of the biggest sectors leading the economic revolution in India is the manufacturing industry. As a result of being a developing country, both labor and raw materials are more affordable, making India a prime location to source products from for major global companies. The “Made in India” campaign was launched in 2014 by Prime Minister Narendra Modi to help spur this development. This effort aimed at promoting India as an attractive manufacturing center for foreign investors.
There are many major global brands that are already taking advantage of the benefits present here in India. Apple has been sourcing components from India for decades, and this trend continued with the new iPhone 12. Chinese giant Alibaba also invests in this region to branch out from their reliance on home manufacturing. While India has always had the reputation for spices and textiles, they are now becoming a respected name in electronics, petroleum products, metals, and more.
Automotive Industry
To the surprise of many, India also has big, illustrious plans to become the next automotive giant in the world. While there are many domestic brands popular here, like Mahindra or Maruti, these automobiles have failed to break out into international acclaim. In recent years, there has been a lot of investment into the Indian automotive sector to bring Indian brands to the global stage, and manufacture more international brands on the subcontinent.
The current $118 billion dollar industry is expected to reach $300 billion by 2026. In 2019 alone, the country produced 31 million vehicles, a 7% increase from 2018. While there are many factors driving this trend, most of which are residual effects of the overall manufacturing boom here, there are also some other areas where India stands out. In an effort to change transportation to cut down on pollution, India has plans to be the center of the electric car revolution. This niche, as well as autonomous vehicles, are of great interest to the Indian government who has invested millions into research in these areas.
Tourism
While India has seen a decline in tourism through 2020 like most other nations, the outlook prior to this year was very positive and it is expected to get back on track soon. By 2029, India’s tourism sector was projected to reach almost $500 billion annually and account for 9% of the overall economy. For visitors, there is a lot on offer here. Some of the biggest draws are the many attractive beaches, 37 World Heritage sites, and rich wilderness, as well as various niche attractions that include health and wellness, medical services, and cruises.
The government of India has also publicly announced its support in turning over 15 iconic tourist destinations around the country into world-class vacation resorts with incredible hotels, theme parks, and other establishments. This is good news for workers in the hospitality industry, as there will likely be thousands of new jobs in these areas. The future looks bright for Indian tourism as the government hopes to be a major tourist destination in the near future.
Pharmaceuticals
Many consumers in the western world would be surprised to learn that over 20% of all generic prescription pharmaceuticals are made in India. This situates the country as the largest provider of generic medicines in the world. The path India took to reach this milestone is a long one, but many of the driving factors are the low costs of manufacturing, research and development, and the wide range of science and medical professionals that are available here.
Even with this sector already well established, there’s a lot of room for advancement. As expected, the Indian government has invested billions into the pharmaceutical industry to help propel development here. One big step is producing more ingredients domestically, a process that would help cut reliance down with competing countries.