The
boosting economic growth of the country is projecting India to be the world’s
fastest growing economy for the rest of the decade. The combined growth in the
population and the economy will soon make India the fifth largest economy in
the world, overall. Out of only two developing countries to attain a position
in the top 10 in A.T. Kearney’s Foreign Direct Investment Confidence Index, India
became one and the only country with a per capita
GDP of less than $5000 to be ranked at all. According to Kearney, India is
perceived as ‘competitive’.
Various
sector and industries have put in their contribution to drop India at a
position where international market entry is considered feasible
for the industrial giants. The Indian economy is boomed by the long-awaited
recovery in consumption that has helped cut down slack in the economy and
underpinned sales in all the sectors.
Have
a detailed look at which sectors contribute how much and in what ways in the
growth of the country’s economy.
·
The Automobile sector- India is known to have emerged as
an auto export hub for both small and heavy vehicles, along with establishing
itself as a prime destination for automotive manufacture. While the demand for
automobiles is broadly based across various markets, the major concentration of
the demand is from the rural part of the country. Indian rural areas deliver a
high demand for two-wheelers and tractors,
which is strongly affecting the sales of companies like Maruti Suzuki and Ashok
Leyland in a positive direction.
·
The Oil and Gas sector- India is experiencing a ferocious
demand to power the growing fleet of trucks, cars, and motorbikes. With the expanding middle-class needs, the
country’s appetite for energy is surging. The government is continuously
encouraging the use of cooking gas for cleaner air. This, as a result, is driving refiners and attracting
global major to enter the Indian market, setting up their business in India.
·
The FMCG sector- Think-tank India Brand Equity Foundation has ranked
India as the fourth-largest in the economy for its rapid growth in the
fast-moving consumer goods sector. India is known as the world’s largest
producer of generic medicines accounting for 20% of the global volume. The
widespread availability of raw materials and the presence of highly skilled
workforce have both catapulted India to the top, establishing it as the
research and manufacturing hub for pharmaceuticals. The Indian Food Processing,
bringing together the country’s agriculture and industry
is vital to the country’s development.
·
The Steel and Cement Sector- The Steel industry contributes to
almost 2% of the GDP is witnessing increasing local demand and higher prices.
According to the data from the Steel Ministry, Tata Steel Ltd.’s sales climbed
8 percent during April through June 2018,
driven by automotive and special products’ demand. On the parallel, JSW Steel
Ltd. recorded a growth of 11 percent in
the group sales. These figures were considered the highest in five years in the
year ended March, as per the data from the Steel Ministry.
·
The Aviation sector- The Indian Aviation sector has
continuously observed double-digit traffic and capacity growth, as more people
take to flying. The country’s RPK (Revenue Passenger Kilometre) rose to 16.6%
in the month of May 2018. The passenger demand has continued to grow at a
remarkable rate over the years, further resulting in an increased number of airport connections. The country’s Aviation sector is estimated to
witness investments of around $15 Billion in between the financial years of
2016-17 to 2019-20. Out of this figure, $10 Billion is expected to come only
from the private sector.
The
overall growth in the country’s economy enables global giants to look up for mergers and acquisition firms in
India and reap the benefits of the rapidly growing Indian market.
Ref Links-
https://theprint.in/economy/here-are-the-industries-that-made-india-the-worlds-fastest-growing-economy/96222/
http://www.makeinindia.com/six-superstar-sectors-boosting-make-in-india
Website: www.tecnovaglobal.com
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