10 Indian Industry Sectors That Will Perform Well In The Current Global Recession
As all business sectors are affected by the current global crisis and everyone talks about a slowdown in business, still in India there are few sectors that will grow in this adverse situation. Let’s take a look.
1.Food
No one can survive without basic foods like milk, vegetables and clean water. Food processing companies will not be affected much and will rather make a profit by raising prices. These are the basic necessities that we as a common man cannot produce by ourselves.
According to MFPI, the food processing industry in India was experiencing growth even as the world faced an economic downturn. According to the minister, the industry is currently growing at 14 percent from 6-7 percent growth in 2003-04. The Indian food market is estimated to be over US$182 billion and accounts for around two thirds of the total Indian retail trade. market. Furthermore, the food retail sector in India is likely to grow from around US$70 billion in 2008 to US$150 billion in 2025.
2. Railroad
As the aviation sector has been hit hard and has caused a sharp increase in air ticket fares, frequent travelers will prefer trains to reduce travel costs and this will lead to increased traffic on trains. and long queues at train reservation desks. Indian Railways’ freight traffic has continued to grow in recent months, albeit at a slow pace, indicating only a marginal impact of the global recession on the Indian economy.
The Railways recorded a 13.87% growth in revenue to Rs 57,863.90 crore in the first nine months ended 31 December 2008. While the total freight revenue increased by 14.53% to Rs 39,085 .22 crore over the period, passenger revenue increased by 11.81% to Rs 16,242.44 crore Railways has improved freight revenue by increasing its axle load, improving customer services and adopt an innovative pricing strategy.
3.PSU Banks
As seen in the private sector, much of the job cuts due to the global slowdown, it is the PSU sector banks that gained a lot of confidence due to job security. More and more people are likely to turn to government institutions, particularly banks, for safety and security.
An “Opportunities in the Indian Banking Sector” report by market research firm RNCOS forecasts that the Indian banking sector will grow at a healthy compound annual growth rate (CAGR) of around 23.3 percent through 2011.
4. Education
Since education is considered a basic need and in India parents see it as a long-term investment, and with respect to demand, there is still a big gap in supply. The craze to study in a foreign university among the still living Indian youth, which will prompt foreign educational institutes to target India, provided a large young population willing to join. We will see more and more foreign educational institutions in India in the coming years.
Huge government and private investment is likely to flow into the Indian education system. DE Shaw, a $36 billion global private equity firm, plans to invest around $200 million in the Indian education sector.
5. Telecommunications
People will not stop communicating with each other due to global crises but it has been seen to increase a lot, particularly with mobile communication. With cheap cell phones available in the Indian market and cheaper calling rates, the sector has become the main necessity of daily life.
The telecommunications sector, according to industry estimates, the year 2008 started with a subscriber base of 228 million and will probably end with a subscriber base of 332 million – a whole century! The telecommunications industry expects to add at least another 90 million subscribers in 2009 despite the recession. The Indian telecommunications industry is one of the fastest growing in the world and India is expected to become the world’s second largest telecommunications market by 2010.
6.IT
Recent news shows that India’s IT sector will grow 30-40% next year. And on the other hand, to survive in the current slowdown, industries need to cut costs and for that they will turn to customized IT solutions which will further drive the demand for software solutions.
India is fast becoming a popular destination for outsourced ezine work. According to a report by the Confederation of Indian Industry (CII), the industry is growing at an annual rate of 35 percent and India’s outsourcing opportunities in basic and value-added services such as copy publishing, project management, indexing, media services and content. The deployment will help make the publishing BPO industry worth US$1.46 billion by 2010.
7. Health care
India, in the case of health care facilities, still lacks adequate supply. In the health sector there is also a large gap between supply and demand at all levels of society. There are still so many urban areas where you could hardly find a multi-specialty hospital. And in the case of the subways, the very sentiments of the market created the need for a psychological consultation.
Healthcare, which is a US$35 billion industry in India, is expected to reach more than US$75 billion by 2012 and US$150 billion by 2017. The healthcare industry is interestingly poised as it strives to emerge as a global center due to the clear advantages it enjoys in clinical excellence and low costs.
8. Luxury products
The upper and wealthy class of society will not be greatly affected by this global crisis, even if their value is significantly reduced. They will not change their lifestyle and will not stop spending on luxury items. Therefore, the market for luxury products will not be affected and, in fact, to maintain the lifestyle, the rich will spend more on it. Luxury automakers are turning out to woo the nouveau riche (Audi, BMW are the latest entrants).
According to recent research on luxury trends, the number of families with annual incomes of more than $230,000 will have more than doubled from 20,000 in 2002 to 53,000 by the end of 2005 and will grow to 140,000 by 2010.
9. Mergers and acquisitions and marketing consulting
As in today’s business, survival will be the main focus, marketing and management consultants will be called in to cut costs and show the ways to survive and stay in the market. Others can come together to fight this situation together they will call marketing and mergers and acquisitions consultants. In a booming market, there are growth strategies and M&A opportunities to advise. When companies are cutting back, consultancies will be there to help clients decide where to swing the axe.
As per Ministry of Trade and Industry estimate, the current size of the consultancy industry in India is around Rs 10,000 crores including exports and is expected to grow further at a CAGR of approx. 25% in the next years
10. Media and entertainment
In the current bad times, where people are losing their jobs and having enough time to watch TV, they will look for entertainment at home and thus increasing advertising revenue for commercial channels. Also businesses like the production of religious texts and religious materials, religious channels will work well. The TRP of the religious channels will increase compared to the other entertainment/commercial channels.
According to a report released by the Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian M&E industry is expected to grow at a compound annual growth rate (CAGR) of 18 percent to reach $23.81 billion. by 2012. According to the PWC report, the television industry was worth $5.48 billion in 2007, registering 18 percent growth over 2006. It is more likely to grow 22 percent in the next five years and be worth US$12.34 billion by 2012.
