List of Potential Fast Growth Sectors in India for the Next 5 Years

5 Fast Growth Sectors in India to keep an Eye on!

List of Potential Fast Growth Sectors in India for the Next 5 Years: Hopefully, the Indian economy has already faced the worst or the coronavirus by now. With the number of cases reducing with every day that passes and the Sensex and Nifty higher than on pre covid levels, we can finally start focussing on other important aspects of our lives.

India luckily is en-route to bounce back and being an emerging market is also slowly gaining back the attention from developed countries. Today we take a look at the Potential Fast Growth Sectors in India for the Next 5 Years. Here, we’ll discuss those sectors that show the best prospects for growth in one of the largest growth engines in the world.

5 Fast Growth Sectors in India

1. E-Commerce Sector

E-commerce sector Fast Growth Sectors in India
The last few months have been the best for E-Commerce as the social distancing requirements have further allowed companies to expand their presence. In fact, many brands are now switching to a retail format in order to establish themselves before it is too late. This can lead to a permanent change in the behavior and mindsets of consumers towards E-commerce. In addition, many large players are also seeking entry into the segment like Reliance.

A few of the popular companies listed on the Indian stock exchange that operates in E-commerce or similar businesses are IndiaMart, Reliance (JioMart B2C), Infibeam, Justdial, Infoedge, IntraSoft Technologies etc.

2. Healthcare and Pharma Sector

Healthcare and Pharma Sector

COVID-19 has forced people to adopt better hygiene practices, which are expected to become a part of our behavior even post the Covid-19 world. Even prior to COVID-19 the population began looking for healthier lifestyles which have encouraged the introduction of several technological advancements in the country.

Some popular advancements are bought about by increasing consumption of nutrients, acceptance of mental health, founding of startups like CureFit, PharmEasy, Practo, etc. COVID-19 has gone a step further to expose the drawbacks of the industry forcing the medical industry to become more accessible, available, and affordable.

The Indian healthcare market is expected to be valued at $372 billion by 2022. One of the factors that are expected to aid the growth of the sector is the increasing population of the country and the increased life expectancy expected with improvements in the sector.

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3. Ed-Tech Sector

Ed-Tech Sector fast growth sectors in India

Ed-tech refers to the advancement of the education industry by making use of technology. The Ed-tech industry is one of the fastest-growing industries globally. One means through which parents assist their children’s success is by supporting their educational needs. They are willing to pay additional amounts for services they believe could give their children an edge.

The sector also receives a boost from the Indian environment that is culturally inclined towards education. In addition, the economic growth of the country demands higher skill development. The COVID-19 has further accelerated the growth of the Ed-tech sector as it has become essential for educators and learners to adopt more efficient digital processes and tools.

From 2014 to 2019, more than $1.8 billion has been invested into Indian ed-tech startups. Many companies like Byju’s have seen significant growth over the last few years.

Top Educational Apps in India

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4. Infrastructure Sector

Infrastructure Sector

Infrastructure has been one of the cornerstones of development allowing the economy to grow exponentially. The industry includes projects like roads and expressways, railway lines, aviation, shipping, energy, power, or oil & gas. The pandemic however has had a significant impact on the infrastructure sector as it relies heavily on labor.

But despite this investors can expect healthy growth in the sector over the long term. Especially with the Make in India in India initiative taking off as companies look for alternatives in Asia. The central and state governments’ ambitious plans of smart cities and increased focus on infrastructure development will aid growth in the sector.

5. Fintech Sector

Fintech sector - Fast Growth Sectors in India

Fintech refers to companies making use of technology to provide financial services to businesses or consumers. Although the Indian market has a large number of players the industry is up for grabs a significant portion of the population still has to be captured. The fintech industry includes digital payments, and access to banking, insurance, and stock markets.

Some popular Fintech companies include Paytm, Razorpay, Google Pay, Zerodha, PhonePe, MobiKwik, PayU, ETMoney, PolicyBazaar, LendingKart, Freecharge and soon may even see Whatsapp entering the space. Last year the Fintech sector received a total funding of $3.18 billion and has emerged as the world’s second-largest fin-tech hub. One of the factors responsible for accelerated growth in this sector has been the digitalization of the economy through smartphones.

UPI Apps Market Share in November 2020

Closing Thoughts

In this article, we discussed the list of fast growth sectors in India for investors to keep an eye on. As the economy begins to recover it puts several sectors to the test on whether they should revert back to pre lockdown practices or continue with the newly set norms and pave the path for the future.

The growth however won’t be limited to the sectors above but they definitely have bright growth prospects in the long term.