An industry that is in its early stages of development and is anticipated to have strong growth over the next several years is referred to as an emerging sector. Most industries in an economy are divided by economists into broad categories like the agriculture, manufacturing, and service sectors. A sector of the economy must meet two requirements in order to be considered an emerging sector. The first requirement is that it be a sector that has emerged but is not yet very large. The second requirement is that it be a sector that is now growing quickly and has the potential to soon play a significant role in the economy. According to these two standards, manufacturing, health care, organized retailing, education and training, tourism, entertainment, insurance, knowledge process outsourcing, and other sectors of the Indian economy now qualify as developing sectors. None of these industries is particularly large at the moment, but they are all expanding quickly and are likely to get much bigger soon. An industry is considered an emerging sector if it has the potential for future growth in addition to its current stage. As a result, it is impossible to accurately pinpoint which economic sectors are emerging.
India may be known for its IT and biotechnology prowess, but there are other fields of importance to small and medium-sized business owners that have made significant advancements in recent years. There are several quickly developing industries in India that offer plenty of prospects for business owners. India is much more than its IT and outsourcing industries. Many opportunities exist in all fields. India is building its infrastructure quickly in order to continue its expansion. With world-class firms like Bharat Forge, Tata Motors, and Mahindra, India’s manufacturing sector is also expanding quickly. In the following three years, the healthcare sector in India will increase to more than £40 billion. In order to meet its goal of training 500 million people, India creates a market for British skill-based businesses. The middle class in India is becoming more affluent, creating new retail opportunities. The entertainment and media industry is predicted to generate £17.8 billion in 2018, opening up a lucrative market for tech companies with inventive intellectual property.
Advanced engineering and manufacturing: The “Make in India” campaign of the Indian government represents perhaps the single biggest shift in the policy-making of the new administration to date, bringing about a shift in focus from encouraging investment to protecting intellectual property and developing world-class manufacturing infrastructure.
India is a major producer of automobiles, and it has invested heavily in green technologies. There is also a significant expansion in civil aviation and defense. To encourage domestic defense equipment production, India liberalized the licensing requirements for private domestic companies and raised the ceiling on foreign direct investment in the defense sector to 49%. UK companies should view even the current offset agreements as a chance for collaboration. Affordable and other cutting-edge versions will become more prominent.
Digital innovation: By 2022, there will be 840 million Internet users in India, up from 357 million (27% of the population) in 2017. This represents 60% of the country’s population. Digital technology use is increasing among Indian customers, which creates a wide range of opportunities in industries like banking, retail, healthcare, and education. The demand for technology-related services, such as developing broadband infrastructure, identification solutions, payment systems, web- or mobile-based delivery structures, and so forth, is anticipated to rise as the Digital India plan takes shape.
Energy: India is the fourth-largest energy user in the world, and in the two years between 2014 and 2015, India’s energy consumption increased at the greatest rate among developed nations. Coal, oil, and natural gas are the three main sources of primary energy in India. The government has said that it wants to increase renewable energy capacity from the current 36.3 GW to 175 GW by 2022, therefore the Indian energy industry offers a significant business opportunity for UK enterprises.
Financial, legal, and professional services: In 2014–15, the financial services sector contributed around 6% of India’s GDP, which is a significant amount. In India, the market for audit, consulting, and advisory services—including those for professional services—is estimated to be worth over £1 billion and is expanding at a 10% annual rate.
The Indian government is opening up the market. The Insurance Laws (Amendment) Act, which was passed in March 2015, has a crucial clause allowing foreign investors to increase their ownership holdings in local insurers from 26% to 49%. Alternative Investment Funds will be able to accept foreign investments. Composite caps will replace the distinction between several investment categories (such as Foreign Portfolio Investments and Foreign Direct Investments), giving foreign investors more breathing room and flexibility.
Infrastructure: By 2020, India is expected to spend about US$ 1 trillion on a variety of infrastructure projects, including new highways, ports, airports, power plants (including nuclear), urban renewal projects, rail lines, and cities and towns.
The 100 Smart City Mission (SCM), together with the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All by 2022, were all introduced by the Indian government in June 2015. The development of industrial corridors like the Delhi-Mumbai Industrial Corridor (DMIC), the Chennai-Bangalore Industrial Corridor (CBIC), and the Bangalore-Mumbai Economic Corridor (BMEC) is a bigger goal of India’s “Smart City” strategy. Along these corridors, numerous commercial and industrial hubs are anticipated to be rebuilt as Smart Cities.
A budget of £9.8 billion was set aside by the Indian government in 2015 to build 98 cities into “smart cities” over the course of the following five years. The project has enormous prospects with a focus on creating smart cities and businesses wanting to provide value-added and specialized services including technology consulting, networking, middleware, sector-specific apps, and systems integration.
Life Sciences and Healthcare: The market is now expanding upward, and by 2018, it is anticipated to reach £123 billion in revenues, up from £61 billion in 2013, showing a CAGR of 15% for the period from 2013 to 2018. Private healthcare is becoming more and more expensive, and Indian pharma and biotech firms are expanding abroad and boosting investments.
The recent approval of FDI up to 100% via the automatic route for the manufacture of medical devices by the Indian government would enhance access to healthcare insurance, as will the liberalization of the country’s insurance market.
Retail, foods & drink, and logistics: While online shopping is anticipated to rise four times to reach USD 14.5 billion during the same period, the Indian retail sector is predicted to develop at a compound annual growth rate (CAGR) of 13% to reach £624 billion by 2018. Key elements including growing internet penetration, the widespread use of credit cards and smartphones, value-added services like “cash-on-delivery,” and most crucially, a significant shift in customer attitudes and purchasing behavior, can all be credited with the exponential expansion of online shopping.
India permits up to 51% FDI in multi-brand retail and 100% FDI in single-brand retail, subject to a few restrictions. 100% FDI is allowed through the automatic method for enterprises engaged in wholesale trading, including B2B e-commerce, and the food processing industry. In the next five years, online retail is anticipated to be on par with physical stores, and by 2019, the Indian e-commerce business is anticipated to reach £60 billion.
Skills and education: The young population of India needs the education and training necessary to propel the economy well into the twenty-first century. India will have 4-5 crore extra people over the next ten years, and it is important to equip this young population with the knowledge and skills it needs to address global concerns. The National Skill Development Mission and the new National Policy for Skill Development and Entrepreneurship 2015 were both unveiled as part of the Skill India Campaign, which the Indian government started in July 2015. There are goals and plans in place to provide 500 million people with vocational training and to add 40 million new university seats.
Sports: In India, the sports industry increased by 10% in 2014, reaching £ 480 million. Opportunities in the fields of sports management, sports engineering, clothing, and equipment and goods for sports are being created by the expansion and development of the Indian sports sector.
Business Opportunities in the Rural Sector
The growth of the Indian economy depends significantly on business in rural areas. Given that around 70% of Indians regard rural areas to be their home, appropriate investment and support can create a healthy entrepreneurial environment in the rural sector. However, it is well recognized that rural India is less economically mobile, younger, geographically remote from markets, culturally anchored in tradition, and experiencing depopulation when compared to the rest of the population.
There are several business prospects in various sectors due to a young population that is rising to leadership roles and technology-driven growth and innovation. Rural places are much more conducive to business startup because they require less initial investment and have lower overhead costs. And secondly, in a small town where people know one another, starting a business is simpler. In order to improve business opportunities in rural areas, the government is also offering money and programs. Certain enterprises can be launched in rural locations. The following are some significant business opportunities in rural areas:
Organic Farming: It is possible to develop a local farming enterprise that uses only organic farming practices to grow vegetables, fruits, sauces, and other regional specialties. People would travel from various locations to purchase organic goods, making this firm successful. Produce with an official organic label or produce with no label is both acceptable for this kind of business.
Selling fresh eggs: Not a lot of land is required to start a chicken business or breeding operation. To determine whether the requirements can be easily accomplished, it is necessary to review state laws
Jute bag making: The best green business opportunity is here. Jute, commonly known as golden fiber, is a biodegradable material with a high monetary value that is farmed by farmers in rural areas. Start a business by buying raw jute from the farmers; this will benefit both of you and the farmers.
Waste Management: Both urban and rural regions produce enormous amounts of trash. The waste that has been disposed of is a mixture of organic and inorganic waste. In rural places, using tons of rubbish and turning it into a useful product is both a good deed and a lucrative business.
Development of Solar Project: In this industry, solar energy is finding significant applications. Starting to use solar energy as a substitute energy source in India could have a good social and economic impact.
Tea Gardening: For those who are enthusiastic about tea, tea planting is an excellent option. Tea plants can be grown on a small plot of land for this enterprise. In actuality, balconies are a great place to grow tea. The soil must be sandy and well-drained for this option.
Beekeeping: Because it involves less time and money, beekeeping is a profitable and high-return company that hasn’t been properly explored as an investment opportunity. The investments in the infrastructure are also minimal. Either individuals or groups can start this.
Fish Farming: Fish farming is one of the most lucrative and successful industries in India. The demand for fish has been rising along with the price as a result of the growing population. Fish farming is therefore one of the most sought-after industries.
Dairy Enterprises: Dairy farming operations are more suited to be established in rural locations. The majority of dairy farmers in India rear their animals according to traditional practices. It doesn’t require laborers with advanced skills. Small-scale dairy farms can be easily established by this company with family members.