Growth story of India

Twenty-five years ago, India embarked on a journey of economic liberalization, opening its
doors to globalization and market forces. We, and the rest of the world, have watched as the
investment and trade regime introduced in 1991 raised economic growth, increased consumer
choice, and reduced poverty significantly. As a result, since few years after inaugurating some
good initiatives and new policies by our Indian government, a lot of industries having been
showing a remarkable growth and are contributing in the growth of the economy.

The sectors with set the pace of growth are:

1. Health care: India’s healthcare sector has been growing rapidly driven by a number of
factors such as increasing the average life expectancy and average income level and rising
awareness for health insurance. Healthcare has become one of the India’s largest sectors both
in terms of revenue and employment. To sum up, there are vast opportunities for investment in
healthcare infrastructure in both urban and rural India.

2. Food Industry: As the lifestyles are changing and getting busier day by day, people are
opting out. There is a large need for quality food and I’m sure it will only grow day by day.
Food and grocery account for around 31 per cent of India’s consumption basket. This is one
sector which has faced a rapid increase in the foreign direct investments.

3. Solar Energy: The Government of the country has taken steps to ensure consistent growth
in the segment. Specialised bodies formed by the Government of India like (MNRE) and
(SECI) have played a pivotal role in helping India become one of the fastest adopters of solar
energy. Renewable sources are expected to help meet 40 per cent of India's power needs by
2030.

4. IT Sector (Big Data, Artificial Intel & IOT): India has good minds that are ready to work
for less. With IOT and Big Data getting into our daily lives, this industry has to grow. IOT will
probably be the next revolution in the IT industry.

5. 3D Printing: Rate at which the applications of 3D printing are increasing, I’m sure it’ll have
a blast in an economy like India.

6. Mobile Payment Technology: Setting up branches in rural areas is costly for banks and
investing in mobile payment technology is less so. Given that more than a billion people in
India use mobile phones, the growth opportunity is significant. According to the recent
estimates, mobile payments could soon give more than 300 million people in India access to
banking services. Those services include credit, which would stimulate the economy even
more.

The sector(s) which lost the race and now on the verge of total revamp are:

1.Manufacturing Sector

Manufacturing sector contribution of 16% to GDP is ridiculously low when compared with
other developing countries especially china where the sector contributes 36%. The failure to
develop proper infrastructure and dearth of skilled workforce are two major reasons for this
underdeveloped sector and has lost the race.

2. Aviation industry

India needs to do away with stamping procedures at airports and allow mobile boarding pass
(MBP), adopt automation for both departure and arrivals, adhere to global standards for
advance passenger information, relocate hand luggage screening (for international arrivals) and
adopt a risk-based approach. So, this industry needs a complete revamp compared to all other
sectors.

How the financial transactions, investment modes have changed in dimension

1. Investments in stocks: As, the chances of exceedingly good returns in short time can be
achieved by investing in stocks rather than real estate. This is how the investment modes have
changed in dimension.

Two points on what major shifts in the growth story we can expect in the next decade

1.We can expect major change in automobile industry (emergence of electric vehicles) will
have a major shift in the growth story in the next decade.

2. Solar energy in India is a fast-developing industry. In Feb 2018, the country's solar installed
capacity has reached about 20 GW. And it has increased eight times since 2014. This gives us
an idea of how fast India is generating energy solar energy and can expect a major shift in the
growth story in the next decade.