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Growth Opportunities to Boost Business Expansion In India – 2022

[/vc_column_text][vc_column_text]India is considered the fastest-growing economy globally and is estimated to hold a place among the three highest economic powerhouses. Supported by a practical business framework and potential workforce, India became the third biggest unicorn base, acquiring over 83 unicorns worth USD 277.77 billion.

Current Indian Market Size

India is a potential hub for investment in different business sectors. The mixed economy nature of the market has been the greatest advantage for an investor as it ensures lucrative returns over the period.

Also, the Government’s initiative to offer relaxation in FDI rules and regulations has attracted investors worldwide. As per the current data of the Department of Economic Affairs, the Indian foreign exchange reserves stood at USD 634.287 billion.[/vc_column_text][vc_column_text]

Growth Avenues In Different Industrial Sector In India

Indian economy is vast and is surrounded by lucrative business options. Packed with solid manpower and resources, the growth opportunities of different industrial sectors are immense.

Automobile and Electronic Vehicle (EV) Market

The surging demand for the automobile industry is powered by the rise in middle-class income and an increase in the young population. India ranked as the fifth-largest automobile industry after the sale of approximately 3.49 million units of passenger and commercial vehicles in 2020. The automobile industry promoted sustainable growth by increasing the compound annual growth rate (CAGR). The economy experienced a surge in CAGR of 6.94% due to the export of 4.77 million vehicles in FY16-FY20.[/vc_column_text][vc_single_image image=”3448″ img_size=”full” alignment=”center”][vc_column_text]The automobile sector successfully attracted Foreign Direct Investment of USD 30.51 billion in the last 20 years. Also, the market size of electronic vehicles is booming with a scope of both domestic and foreign investments. India’s EV market will grow to a market size worth USD 7.09 billion by 2025. Some notable investments plans announced for EV markets by the end of 2021 are:

• Skoda Auto announced to manufacture electric cars domestically in India. The company also plans to introduce its first EV before starting manufacturing.
• Yamaha, a Japanese two-wheeler giant company, and Hero Motor contracted into a joint venture partnership to manufacture electric motors used in e-bicycles for the global market.

According to the latest report of the India Brand Equity Foundation, a total of 10,60,707 EVs have been registered with 1,742 public charging stations in service in India. Also, the Government has allowed 100% of foreign direct investment with no minimum investment criteria.[/vc_column_text][vc_column_text]

Retail Sector

The retail sector alone constitutes 10% of the GDP of India and almost 8% of the country’s employment. The increasing purchasing power drives this industry and has attracted a total FDI of 3.61 billion in the past two decades. The market size of the retail sector is considered to be the most fast-moving industry in India.

The increasing demand in retail has led many foreign investors and retail tech companies to support this industry. The Government allowed 100% of FDI through an automatic route to attract investors into the sector.[/vc_column_text][vc_column_text]

Fintech

The concept of the Fintech market gained popularity in 2018, with many capital investors keen to provide funds in this sector. The main reason behind this industry’s rising growth is the increasing demand for technology compounded Fintech products.

As per the economic survey, the market opportunity for Fintech products will acquire USD 1.3 trillion by 2025. The government has allowed 100% FDI under an automated route to attract investors from different parts.[/vc_column_text][vc_column_text]

Healthcare

The Healthcare industry comprises hospitals, medical devices, tourism, health insurance, etc. This industry is soon-to-be one of India’s largest sectors, led by a large and efficient pool of well-trained medical professionals. By 2022, healthcare infrastructure will reach more than USD 349.1 billion.[/vc_column_text][vc_single_image image=”3449″ img_size=”full” alignment=”center”][vc_column_text]Over time, the healthcare industry has attracted promising foreign direct investments. In India, FDI in the overall healthcare sector is allowed at 100% under automatic route for green-field projects. Also, FDI is allowed at 100% on medical devices is permitted under the government route in brownfield projects.[/vc_column_text][vc_column_text]

Renewable Energy

In 2020, India stood fourth in installation capacity in renewable power. The renewable energy industry plays an important role in meeting increasing demand in India. By the end of 2022, the Government thrives to achieve 227 GW of renewable energy capacity. The non-conventional energy market attracted a cumulative FDI inflow of USD 11,208.89 in the last 20 years.

The year 2021 saw some major developments and investments in the renewable energy sector. Some of the notable investments plans made are:

• Amp Energy India Private Limited and Copenhagen Infrastructure Partners agreed to ease joint equity investments of greater than USD 200 million in different renewable energy projects in India.
• Reliance Industries announced to invest a sum of USD 10.07 billion in accelerating various projects in the green energy segment.

Currently, renewable energy capacity in India covers almost 38.28% of the total installed power capacity. In 2021, the capacity of renewable energy increased by 1,522.35 megawatts. In the renewable energy industry, FDI allowance is 100% under the automatic route and doesn’t require Government approval.[/vc_column_text][vc_column_text]

Fast Moving Consumer Goods (FMCG)

In the Indian economy, FMCG is the fourth largest sector. According to an economic survey, the FMCG market will elevate the Compound Annual Growth Rate (CAGR) to USD 220 billion by 2025. With the growing awareness and usability of various digital mediums, needs for consumer goods (mostly household and personal care products) have increased through e-commerce portals. The Government has allowed 100% foreign investment in single-brand retailing and 51% in multi-brand retailing.[/vc_column_text][vc_column_text]

Power Sector

India is the world’s second-largest consumer and the third-largest producer of electricity. The Government’s “Power for All” initiative has promoted a sustainable electricity drive in India. With the increase in electrification in urban and rural India, the total consumption of power is anticipated to reach 1,894.7 TWh by the end of 2022. The Government has allowed 100% FDI under the automatic route, excluding generation or transmission of atomic energy.[/vc_column_text][vc_column_text]

How Can Management Consultants helps to Boost Business Expansion In India

[/vc_column_text][vc_column_text]Understanding the scope and possibilities of business in the Indian market can be daunting. It is necessary to have an insight into the business before investing in any business. To assist foreign investors and give them a clear insight, management consultants like Tecnova provide complete assistance in developing entry strategies and investment plans. These businesses consulting firms provide the following service that aid foreign investments in India.

• Provides an In-depth market exploration approach.
• Understanding of revenue-generating opportunities.
• Provides insight into current and future opportunities.
• Allocating advantages in different investment plans.
• Understanding of different obstacles and demand & supply gaps.

The investment and business growth in different sectors in India is immense. However, identifying the correct ways can be a challenge. The approaches followed by the management consulting firms have helped foreign investors plan their funds for investment and understand the different business scopes.[/vc_column_text][vc_column_text]Reference

• Power Sector in India: Market Size, Industry Analysis, Govt Initiatives
• Renewable Energy Industry in India: Overview, Market Size & Growth
• Indian Economy: Overview, Market Size, Growth, Development, Statistics
• Indian GDP Expected Growth
• 9 Indian Sector with Expected to Boom in 2022.
• Where to Invest in India

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