Growing Industries in India
To the Western world, India is best known as the land of cricket and the birthplace of yoga. However, what used to get considered one of the world’s most financially deprived territories is now growing into an economic powerhouse that the US and China are starting to fear. According to Investopedia, it has the six-largest economy by nominal GDP and the third-most-massive concerning purchasing power.
Despite 2020 being a bad year for virtually all regions on Earth and India’s GDP growth contracting by 7%, leading investment banking company Goldman Sachs predicts that the country’s GDP will rise by 9.1% year-on-year in 2022 from 8% in 2021. Thus, India’s private corporate capital expenditure recovery is imminent, as the country should get right back on track to financially swelling. As demand recovers, so will the economy. Below, we list a few sectors that analysis shows will be substantial players in India’s financial sphere in the years to come, contributing sizably to its GDP.
Healthcare Industry
India is on course to become the most populous country on the planet, as it is only twenty-two million residents shy of reaching China’s population of 1.4 billion. Thus, it is logical that it would have a pretty robust healthcare industry by now. Per the India Brand Equity Foundation, its hospital sector should increase in size to $132 billion by 2022, as the country plans to expand public health spending over the next three years.
That said, the chief reasons for India’s healthcare boom lie in the success rate of homegrown companies getting Abbreviated New Drug Application approvals, medical tourism, and countless research and development opportunities offered. Moreover, healthcare infrastructure in Indian urban and rural areas does not stack up to the one present in Europe and North America. So, investment possibilities are available in these fields as well. The number of healthcare startups that dabble in AI technology is also surging. Popular health AI-oriented entities include Niramai Health Analytix, HealthifyMe, PharmaEasy, and OncoStem Diagnostics.
Digital Payment Technology
Digital payments are transactions that happen over the internet. In 2021, more than forty billion digital money transfers got recorded across India, worth more than a quadrillion rupees. Naturally, Paytm, which recently went public in India’s biggest-ever IPO, is the sector juggernaut, but it is facing stiff competition from foreign brands like Amazon, Apple, and WhatsApp. Nonetheless, that does not mean that native fintech entities are not springing up to try and challenge Paytm.
Pre the pandemic, India had the world’s highest fintech adoption rate, and 67% of its startups dealing with this technology appeared in the last five years. Therefore, it is at the forefront of digital payment innovation, and recently, it began moving toward tokenization to maximize security. Besides Paytm and PhonePe, other Indian companies making headway in this industry include Zeta, Razorpay, and BillDesk.
Online Gambling
Betting on games of chance and sporting events over the internet is now a global pastime. In 2019, the online gambling games industry raked in $58.9 billion in revenues. Estimates are that in 2023, it should pull in almost $93 billion. That is a staggering increase of over 50% in less than four years. Hence, many tech companies are looking to get in on this fledgling sector before it becomes highly saturated.
India has no law that regulates online betting. So, no native company can offer gambling services over the internet to the country’s residents, even though Indians are free to play at off-shore sites without fear of getting prosecuted for this pastime. Meaning, Indian businesses looking to expand in this sector get limited to only developing technologies for it. Mumbai-based Casino Software India is one such entity trying to pave the way.
Social Media Marketing
Within the digital advertising industry, social media marketing is the second-largest section. On a global scale, this market is worth $153 billion. Projections are that it should swell by an extra $100 billion in the next five years.
Last year, around 91.9% of large-scale US companies used social media marketing, as this form of advertising is slowly evolving into the dominant one. In India, it was responsible for 30% of all advertising spending, and it is expanding at an annual compound rate of 28.39%. Since India has a vast English-speaking population that is tech-savvy, it is an excellent breeding ground for social media marketers.
Automobile Industry
By 2026, expectations are that India will become the world’s third-largest automobile market. Currently, it is in fifth place, with Tamil Nadu and Chennai being home to 35-40% of the country’s automobile industry. The sector contributes 7.1% to India’s GDP, responsible for over thirty-five million jobs. India is the largest tractor manufacturer and the second-largest bus one on the planet. Tata Motors is the most notable home auto corporation focusing mainly on mid-sized passenger vehicles.
About the Author
Shelly Schiff has been working in the gambling industry since 2009, mainly on the digital side of things, employed by OUSC. However, over her eleven-year career, Shelly has provided content for many other top interactive gaming websites. She knows all there is to know about slots and has in-depth knowledge of the most popular table games. Her golden retriever Garry occupies most of her leisure time. Though, when she can, she loves reading Jim Thompson-like crime novels.