Industries

Aviation

Indian aviation sector has witnessed a phenomenal growth chart in the last decade. Today, India is the 9th largest civil aviation market in the world and ranks fourth in domestic passenger volumes with a market worth of US $12bn. As per AAI, passenger handling capacity has risen two-fold from 72 million (FY 06) to 143 million (FY 11), and freight traffic has risen from 1.5 million MT (FY ’06) to 2.3 million MT (FY ’11).

Automobiles

The world standings for the Indian automobile sector, as per the Confederation of Indian Industry, are as follows:

  • Largest three-wheeler market
  • Second largest two-wheeler market
  • Tenth largest passenger car market
  • Fourth largest tractor market
  • Fifth largest commercial vehicle market
  • Fifth largest bus and truck segment

The auto sector reported a robust growth rate of 26 percent in the last two years (2010-2012). The BSE AUTO Index outperformed the benchmark Nifty by 79%, 12% and 19% in FY10, FY11 and FY12, respectively.

Consumer Durables

The industry size for consumer durables stands at Rs 350 billion (as on March 2012). The sector rides and relies on the state of the country’s economy. With household incomes in top 20 cities across India expected to grow at 10 percent annually over the next eight years, and concepts of easy loans, equated monthly installment (EMI) charges, availability of credit, etc., become commonplace, the Indian consumer is likely to spend more on both utility and luxury consumer goods.

Education & Training

The education and training sector in India is standing at $600 billion and the private education segment alone is expected to cross $45 billion mark by 2015 from the present $35 billion, according to a research by Investor Relation Society. This sector is named as the major employment driver in India in the Indian Job Outlook Survey 2012. It is expected that employment opportunities will continue to grow in this sector for the next two decades.

Energy Sector

The Energy/power industry is responsible for the production and delivery of electrical energy in sufficient quantities via a power grid. Given the demand for electricity is uniform across all domestic, industrial and commercial operations, power is viewed as a public utility and basic infrastructure.

Power is the one of the most vital inputs to the socio-economic development of the country. The projected growth of Indian economy largely depends upon the performance and growth of the power sector. As estimated, India needs to augment power production to 8 lakh mega watts from the current 1.6 lakh mega watts to sustain present economic growth in next 25 years.

Banking & Financial Services

The present Rs 64 trillion (US$ 1.17 trillion) Indian banking industry is governed by the Banking Regulation Act of India, (1949) and is closely monitored by the Reserve Bank of India (RBI). RBI manages the country's money supply and foreign exchange and also serves as a bank for the Government of India and for the country's commercial banks. As of now, public sector banks account for 70 per cent of the Indian banking assets.

According to an IBA-FICCI-BCG report, India’s gross domestic product (GDP) growth will make the Indian banking industry the third largest in the world by 2025. According to the report, the domestic banking industry is set for an exponential growth in coming years with its assets size poised to touch USD 28,500 billion by the turn of the 2025.

Medicine & Health Care

The Indian healthcare industry, which comprises hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment, is expected to reach US$ 160 billion by 2017.

On the back of continuously rising demand, the hospital services industry is expected to be worth US$ 81.2 billion by 2015. The Indian hospital services sector generated revenue of over US$ 45 billion in 2012. This revenue is expected to increase at a compound annual growth rate (CAGR) of 20 per cent during 2012-2017, according to a RNCOS report titled, ‘Indian Medical Device Market Outlook to 2017’.

Biotechnology & Life Sciences

Biotechnology deals with the application of biological knowledge and techniques pertaining to molecular, cellular and genetic processes to develop significantly improved products and services. The applications of biotechnology range from agriculture, industrial and medical biotechnology.

The Indian biotechnology sector is one of the fastest growing knowledge-based sectors in India and is expected to play a key role in shaping India's rapidly developing economy. With numerous comparative advantages in terms of research and development (R&D) facilities, knowledge, skills, and cost effectiveness, the biotechnology industry in India has immense potential to emerge as a global key player.

In fact, India has been ranked among the top 12 biotech destinations worldwide and third largest in the Asia-Pacific region.

Information Technology & IT- Enabled Services

The IT & IT – Enabled Services sector includes IT services, engineering design and R&D services, ITES (IT-enabled services) or BPO and hardware. Today IT and ITES sectors lead the economic growth in terms of employment, export promotion, revenue generation and standards of living. As per NASSCOM estimates, IT/ITES sector (excluding hardware) revenues are estimated at USD 87.6 billion in FY 2011-12; and the industry is expected to grow by 19 per cent during FY 2012-13.

The IT/ITES sector has led to employment opportunities, both direct and indirect, of nearly 2.8 million and around 8.9 million respectively. This growth is expected to increase to more than 14 million (direct and indirect) by 2015 and to around 30 million by 2030.

The market size of the industry is expected to rise to USD 225 billion by 2020 considering India's competitive position, growing demand for exports, Government policy support, and increasing global footprint. IT/ITES industry has led India's economic growth and this sector's contribution to the national GDP has risen from 1.2 per cent in 1997-98 to an estimated 7.5 per cent in 2011-12.

Hospitality & Leisure

Indian hospitality sector contributes 8-9 percent of the country’s GDP. The sector encompasses travel and tourism and major segments that fall under this category include accommodation and catering (hotels, restaurants), transportation (cruise, railway, rentals, and airline companies), travel agencies and tour operators.

The tourism and hospitality sector together contributed US $32.7bn in 2011, and registered a CAGR of 13 percent. Currently, India has 114,000 hotel rooms, which stands 150,000 rooms short in meeting the current requirement. Thus, the growth opportunity for this sector is immense, but is tangled with challenges across parallel sectors and the overall economy.

According to estimates provided by World Travel & Tourism Council (WTTC), contribution of travel and tourism to nation’s GDP will grow consistently in the next decade though this growth opportunity will be closely linked to the growth of India’s hotel and restaurant business.

Manufacturing & Engineering

The engineering sector is the largest sector among the industrial segments in India and provides direct and indirect employment to over 4 million skilled and non-skilled workers (according to Corporate Catalyst India; June 2011). Though a diverse industry, it can be divided into two broad categories:

Leading players in the engineering industry are Bharat Heavy Electrical Ltd., Engineers India Ltd., Hindustan Aeronautics Ltd., Crompton Greaves, Elgi Equipments, HMT, Kirloskar Oil Engines Ltd. (KOEL), Larsen & Toubro Ltd. (L&T), Thermax Ltd., Cummins India Ltd., Alfa Laval (India) Ltd., Asea Brown Boveri Ltd (ABB), and Siemens Ltd.

Transportation & Logistics

The Indian Logistics Industry is estimated at US$ 125 billion in 2010. Generated employment for 45 million people. The industry is expected to grow annually at the rate of 15- 20 per cent, reaching revenues of approximately $ 385bn by 2015. Highly Unorganized with organized sector responsible only for 6%. Market share of organized logistics players is also expected to double to approximately 12 per cent by 2015. The size of the 3PL industry is estimated to be~US$1.5 bn in FY11 (1% of logistics cost). The share of 3PL services is expected to increase from 6% in FY06 to 13% in FY11, at a CAGR of 25%. Logistics costs are 10-20% of GDP. Indian Infrastructure is rated 54th among the 59 countries -- Road: 56/59, Rail: 25/59, Seaport: 51/59, Airport: 40/59

Retail

Retail industry, being the fifth largest in the world, is one of the sunrise sectors with huge growth potential and accounts for 14-15% of the country’s GDP. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India, especially over the last few years.

Telecommunication

The progress and the changes in telecom have been astronomical, with new and cheaper technologies taking birth almost each year. With an addition of 18 million subscribers every month and contributing to nearly 2% of the Indian GDP, Indian telecom industry is considered to be the largest telecom markets of the world. Driven by wireless communication, the telecommunications industry is recognized as a key to the rapid growth and modernization of the economy and an important tool for socio-economic development for a nation.

Most of the telecommunications forms in India are as prevalent or as advanced as those in modern Western countries, and the system includes some of the most sophisticated technology in the world and constitutes a foundation for further development of a modern network. Telecom Regularity Authority of India (TRAI) is the sole authority empowered to take binding decisions on fixation of tariffs for provision of telecommunication services.

India has the world's second largest mobile phone users with over 903 million as of January 2012. It has the world's third largest Internet users with over 121 million as of December 2011. India has become the world's most competitive and one of the fastest growing telecom markets.