Top Industries to Deliver High Returns for Investors in Future

According to the Asian Development Bank, the Indian economy is expected to grow by approximately 8% in the next 5-6 years, endorsed by increasing public investment in infrastructure and a pickup in private sector investment. Investors, motivated by the results of their investments in the past fiscal year, are prepared to devote a significant gear percentage of their savings to capital instruments in the forthcoming years. They are also motivated to invest in the growing industries in India.

Numerous experts speculate that the Indian Stock Market will also have progressed and expanded to the fifth largest in the world, accounting for the highest market capitalization. The market grows with various stepping elements supporting this expansion, such as government initiatives, foreign relations, market dynamics, etc. In order to gain insights about which sector will turn in India and which sectors in India will flourish even more in the investing shortly future.

List of the Top Sectors in India that are most likely to Provide Excellent Returns include:

Healthcare and Insurance Sector

Due to an ageing population, an increase in chronic illnesses, and a growth in disposable income, India's demand for healthcare services is on the rise. In addition, the COVID-19 epidemic has also brought attention to the need for improved healthcare services and infrastructure in India, encouraging further investment.

Ayushman Bharat, a program that intends to offer health insurance to more than 100 million people, is one of several efforts the Indian government has made to improve the healthcare industry. Also, the government has raised the healthcare budget, creating investment opportunities and better healthcare services.

In India, the healthcare industry embraces cutting-edge technology like telemedicine, electronic medical records, and digital health platforms, giving the industry's businesses new development potential.

In India, the penetration of the health insurance market has significantly increased in recent years as more people purchase health insurance coverage. Moreover, with more insurance providers joining the market, there will likely be more competition and more products in the future, continuing this trend.

Nevertheless, India's healthcare and insurance industries provide promising prospects for expansion and advancement in the years to come. Businesses in these industries may use the increased demand for healthcare products and services, government efforts, technology improvements, and increasing health insurance penetration to expand their market share and open up new business possibilities.

Following are some of the companies worth considering in this sector - Sun Pharmaceutical Industries, Divi’s Laboratories, Dr Reddy's Laboratories, Cipla, and Apollo Hospitals Enterprise

Renewable Energy Sector

By 2030, India wants to have 450 GW of renewable energy capacity, comprising 5 GW of small hydropower, 10 GW of biofuels, 280 GW of solar power, and 140 GW of wind power. With India's renewable energy industry expanding quickly in recent years, the nation has made tremendous progress toward meeting this objective.

The building of ultra-mega solar parks and deploying solar rooftop programs are only two of the steps the Indian government has started to promote the use of solar energy. In addition, the construction of offshore wind energy projects is one of several measures the government has begun to encourage wind energy usage.

Following are some of the companies worth considering in this sector in India: Reliance Industries, Oil & Natural Gas Corporation, NTPC Open Grid Corp, Adani Green Energy

IT Sector

India has a large supply of skilled workers and an attractive business environment; it has been making a significant contribution to the global IT industry for many years. As a result of this, India's IT market has grown rapidly, with projections for total IT sales exceeding $300 billion within five years (by 2025). Many multinational companies have chosen to outsource their IT work to Indian firms as they are also major providers of global IT service solutions both through their development and maintenance services.

The IT industry in India has recently shifted towards more modern technologies like cloud computing, AI, and the Internet of Things. The government has started several programs to encourage the development of these technologies in the nation, and several Indian IT companies are making significant investments in these fields.

Following are some of the companies worth considering in this sector: Reliance Industries, Tata Consultancy Services, Infosys, HCL Technologies, Wipro

Real Estate Sector

As a result of some legislative changes and shifts in the regulatory landscape, the Indian real estate market has been experiencing a stage of transformation and consolidation in the recent past. Consequently, the industry has been experiencing challenges such as a drop in demand, financing problems, and delays in the completion of projects.

However, the Real Estate Regulatory Authority and the Affordable Housing Program are not the only new efforts of the government to promote the growth of the real estate market (RERA). The purpose of these programs is to make the housing industry more open and accountable and offer affordable housing to the middle- and low-income layers of society. Furthermore, it would be expected that the Indian real estate market would benefit due to the growing urban population in the country and the increasing demand for commercial real estate.

Moreover, the office space market in India is expected to widen as the Business Process Outsourcing (BPO) and Information Technology industries demand more office space. With the efforts of the government to promote affordable housing and improve the regulatory climate being enforced, the residential real estate markets of India are also expected to recover in the near future. One of the government's efforts to boost the real estate market is the Goods and Services Tax (GST) rates imposed on affordable housing.

Overall, it is anticipated that the Indian real estate industry will continue to confront obstacles shortly, but the sector's long-term prospects are still promising. Favorable government policies, growing urbanization, and commercial real estate market expansion are all anticipated to be positive factors for the industry.

The following are some of the companies worth considering in this sector: India Bulls Real Estate, Oberoi Realty

Fast-Moving Consumer-Goods Sector (FMCG)

Fast-moving consumer Goods (FMCG) have seen significant growth in India over the past several years due to reasons including rising earnings, shifting lifestyles, and increased urbanization. The industry offers goods, including packaged food and drinks, toiletries, and cleaning supplies.

The growing demand for healthy and organic products is one of the significant trends in the Indian FMCG industry. As consumers' awareness of their health increases, they look for natural, organic, and chemical-free products. By introducing new goods and spending money on research & development in this field, several FMCG firms in India are responding to this trend.

The growing emphasis on e-commerce and digital marketing in the Indian FMCG industry is another trend. Several FMCG firms are investing in e-commerce platforms and digital marketing due to the rise of online shopping to contact customers directly.

The Make in India program, which aims to promote manufacturing in the nation, and the National Food Processing Policy, which seeks to increase food processing and decrease food waste, are just two initiatives the Indian government has launched to support the growth of the FMCG sector.

The FMCG industry in India is anticipated to develop quickly over the next several years due to increased consumer demand, rising incomes, and supportive governmental regulations. Nonetheless, the industry may encounter difficulties, including escalating rivalry, growing raw material costs, and shifting customer tastes.

Following are some of the companies worth considering in this sector: Hindustan Unilever Ltd, ITC Limited, Nestle India, Britannia Industries, Godrej Consumer Products

It makes sense for an intelligent investor to invest in India’s growing sectors for long-term investments. However, there is an important lesson to be learned here: not every growing industry will provide incredible returns. Therefore, diversifying is the best approach to selecting the best sectors in India for investment.

Allocate funds to various sectors that you believe will grow, reducing risk and ends, so that you do not miss out on any booming sectors.