HIGH GROWTH SECTORS FOR INDIA

Q- What are the top 5 or 6 key high growth sectors in India?

In my opinion Retail, IT, Energy, Bio Technology, Pharma, Auto, Metals & Mining sectors could be the high growth areas for next 20-25 years in India. High growth in the Energy, Auto, & Metals will be primarily because of the much lower per capita consumption of Energy & Metals and much lower per capita ownership of vehicles. IT, Bio Technology & Pharma will be the high growth areas because of the Highly Educated & Skilled manpower, this will be a great cost advantage resulting in lot of out sourced work from developed countries. The IT sector has not penetrated enough in both Public & the Private sector in India, but with the expansion of businesses in Banking, Retail, Insurance and several other growth sectors the potential for IT sector within the country itself will be pretty large. The Mining sector will automatically see a flurry of activity since the consumption in Energy, Metal and Auto sector will go up.

Indian economy at present is largely driven by captive consumption, but when Indian manufacturers and service sectors start exporting like China, Korea, Taiwan, & Japan and even if they are able to export 12-15 % of the GDP then the growth in the Indian businesses will unbelievably high. Other factor that will also boost the growth will be rising per capita income of the Indian population in the Rural and semi Urban areas. The per capita income in India will further increase due to the creation of millions of jobs as a result of the high paced growth expected in all the sectors of the Indian economy but particularly in the Retail, Energy sector in coming 2-3 years.

I therefore visualise that practically all sectors of the Indian Economy will continue to boom for the next 25-30 years but specifically above 6-7 sectors will project unforeseen growth in the coming years. From the 2009 on wards the Energy sector and Indian Economy as a whole will see a sea change due to the flow of Gas from the Reliance Industries. It will not only boost Indian Foreign Exchange Reserves but will also make Rupee much stronger against all the currencies of the world.

CHITARANJAN NAGRECHA