As all business sectors are affected by the current global crisis and everyone talks about a business slowdown, 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 food such as milk, vegetables and clean water. Food processing companies will not be affected much and will rather make a profit by increasing prices. These are the basic necessities that we as 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 compared to 6-7 percent growth in 2003-04. The Indian food market is estimated at 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 airfares, frequent flyers will prefer trains to reduce travel costs and this will lead to increased traffic on trains and long queues at train reservation counters. 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 posted a 13.87% growth in revenue to Rs 57,863.90 crore in the first nine months ended 31 December 2008. While total freight revenue increased by 14.53% to Rs 39,085 Rs .22 crore during the period, passenger revenue increased by 11.81% to Rs 16,242.44 crore The Railways have improved freight revenue by increasing their 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 banks in the PSU sector 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 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 necessity and is seen by parents in India as a long-term investment, and with regard to demand, there is still a large gap in supply. The craze for studying in a foreign university among the young Indians still alive, 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 prime necessity of daily life.
The telecommunications sector, according to industry estimates, the year 2008 began with a subscriber base of 228 million and will probably end with a subscriber base of 332 million: a full century! The telecommunications industry expects to add at least another 90 million subscribers in 2009 despite the recession. The Indian telecom industry is one of the fastest growing in the world and India is forecast to become the second largest telecom market in the world 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 to do so they will turn to customized IT solutions which will further drive 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 core and value-added services such as copy editing, project management, indexing, media services and content. The deployment will help make the publishing BPO industry worth $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 subways, the market’s own sentiments created the need for a psychological consultation.
Health care, 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 health care industry Salud is interestingly poised as it strives to emerge as a global hub due to the clear advantages it enjoys in clinical excellence and low cost.
8. Luxury products
The upper and wealthy class of society will not be much 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 to court 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 more than double from 20,000 in 2002 to 53,000 at the end of 2005 and will grow to 140,000 by 2010.
9. Mergers and acquisitions and marketing consulting
As in today’s business slowing down survival will be the main focus, marketing and management consultants will be required to cut costs and show ways to survive and stay in the market. Others can band together to fight this situation together they will call on marketing consultants and mergers and acquisitions. 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 the estimate of the Ministry of Trade and Industry, the current size of the consultancy industry in India is around Rs 10,000 crores including exports and it is expected to grow further at a CAGR of approx. 25% in the next few 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. in 2012. According to the PWC report, the television industry was worth $5.48 billion in 2007, posting 18 percent growth over 2006. It is more likely to grow 22 percent over the next five years and is worth US$12.34 billion by 2012.