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In our pursuit of spotting sectors that will shape the future of India we have looked at 3 stand out dimensions: 1. 2. 3. Where does India reside? Sectors that will impact all sections of the society Sectors that will have multiplier effects on businesses around them

India lives in the mid segment and Bottom of the Pyramid (BoP) segment and most business opportunities get captured in these segments. If we roll in the next 5 years for India, the mid segments (spend capability of consumer) and the BoP (benefit potential to consumer) will be the most fertile segments for businesses. If we have to look in the future of a country then the best prism would be to look at it from 3 perspectives - Social development, Economic contributors & Legal system. We are looking at the potential opportunities from this perspective. There will be some opportunities that will extend from the mid segment into the BoP. These are opportunities that have great potential for investment and need to be looked into first. These sectors and the feeding sectors to them will provide all round opportunity. Organis ations that hook up to these sectors will be in profitable play for a long time to come.

Life Sciences & Healthcare The Indian Lifestyle and Healthcare Industry is currently US$ 100 bn in size and expected to grow at about 13 % CAGR over the next 5 years. There is an acute need for all round healthcare delivery services to India's 1.2 bn people. The opportunity has a huge spiralling effect on some of its sub sectors. These can trigger a lot of demand for auxiliary services in the entire life sciences ecosystem. From a healthcare delivery perspective India has an abysmally low bed to population ratio and that has grown only grown 1.66 times over the last decade! The healthcare space has the potential to absorb US$ 400 bn US$ 600 bn over the next 10 years. There is also a huge opportunity for healthcare research in India. Incidences of every type of disease exist in India and epidemics are always round the bend. It is a fertile ground for drug discovery, disease management & technology, medical education etc. These opportunities provide the multiplier effect to the entire ecosystem.

Education India's best chance to fast forward it's development will depend on the way Indias education sector will shape up. There are opportunities that exist in K-12, higher education, skills training and development. There are opportunities in specialized education in Agriculture, manufacturing, social development etc. India plans to enhance its formally skilled workforce through vocational education and training from the current levels of 12% to 25% by 2017, thereby adding about 70 million people between 2013 & 2017. The education sector has attracted foreign direct investments (FDI) of US$ 552.09 million between April 2000 to March 2013 and this is expected to grow significantly. Inspite of tight budgetary pressures the Government of India has allocated US$ 10.94 billion to the Ministry of Human Resource Development for Education development this year. This sector is expected to see investments upwards of US$ 100 bn. over the next 3-5 years. Education sector growth has multiplier effects because it will mean opportunities for companies in content development, content assimilation & delivery, assessment and evaluation.

Water The one resource that will come to haunt India over the next many years is Water. In spite of availability of abundant water, India faces many water related problems due to lack of water distribution infrastructure, poor water management, and poor operational efficiency of available infrastructure. The diminishing gap between population and per capita water availability presents a huge opportunity for loss-less water transmission and efficient water treatment systems. Average water loss in the leaking water supply systems is generally between 20-50% & depends on terrains. Irrigation, Energy and domestic consumption account for over 90 % of water requirement in the country. The Union and state governments in India plan to collectively invest a substantive amount of US $ 20 billion for sewage treatment, irrigation and recycling in the next five years. This space provides a wide horizon of opportunity - conservation, harvesting, Distribution, utilization & optimization (treatment).

Renewables & Green Energy Inspite of being fifth largest producer and consumer of electricity in the world after the US, China, Japan and Russia, India is a power deficit country and will remain that way till such time a skip opportunity does not come our way. The skip opportunity will essentially disengage important loads from grid power and localize their operation. This localization will be possible through renewables and clean energy solar, biomass etc. Renewable energy is fast emerging as a major source of power. Wind energy is the largest source of renewable energy in India; it accounts for an estimated 87 per cent of total installed capacity in renewable energy. The country aims to increase the importance of wind power even further; there are plans to double wind power generation capacity to 20 GW by 2022.

Housing There will be opportunities for creating affordable housing in the mid segment and low cost housing for the BoP segment. Housing shortage coupled with unreasonable real estate pricing is creating a severe imbalance in the market. This need to be addressed and a lot of initiatives are required in this space. This opportunity has a huge multiplier on the core sector businesses and the building materials businesses.

Security Human life and public asset protection will become paramount as India grows. There will be need to protect work forces Indian, foreign nationals and the assets they use. This has to be in public infrastructure and private dwellings. Insurance is going to be a big driver of this and human resource development will become its biggest enabler. Security business is currently estimated at US$ 5 bn. and is expected to grow at 18 % over the foreseeable future. This industry employs 6 mil people currently. The security business will include surveillance, detection & protection.

Agriculture The total geographical area of the country is 328.7 million hectares of which net irrigated area is only 63.3 million hectares. About 120.40 million hectares (37%) is affected by various kind of land degradation. This includes water and wind erosion (94.87 million hectares), water logging (0.91 million hectares), soil alkalinity/Soda city (3.71 million hectares), soil acidity (17.93 million hectares), soil salinity (2.73 million hectares) and mining and industrial waste (0.26 million hectares). For a country like India where millions go hungry, our farm to fork wastage of food across the value chain is in excess of 18 %. This is because more than 30% of produce from fields is lost to poor post-harvesting facilities and lack of cold chain infrastructure. 20% of food grain that India produces annually is eaten by rodents; only 7% of food in India is processed. In comparison he UK process 65% of its food and a developing country like the Philippines also processes as much as 45% of its food. These statistics throw up a huge need for investments and demand in the agriculture sector. Further, there is tremendous opportunity in the post-harvest business in India. It starts from harvesting, collection, cleaning, processing, packaging, transportation and retailing.

Disclaimer: This report has been published for information and illustrative purposes only and is not intended to serve as advice of any nature whatsoever. The information contained and the references made in this report is in good faith, neither feedback consulting nor any its directors, agents or employees give any warranty of accuracy (whether expressed or implied), nor accepts any liability as a result of reliance upon the content including (but not limited) information, advice, statement or opinion contained in this report. This report also contains certain information available in public domain, created and maintained by private and public organizations. Feedback consulting does not control or guarantee the accuracy, relevance, timelines or completeness of such information. This report constitutes a view as on the date of publication and is subject to change. Feedback consulting does not warrant or solicit any kind of act or omission based on this report. Copyright 2013 | Feedback Business Consulting, India Contact Us: Bangalore: +91 80 4062 3800 I Mumbai: +91 22 6789 8000 I Delhi: +91 11 4653 4653 I I Chennai: +91 44 4227 7888