In the current global economic slowdown, every sector of business is
being affected and is witnessing a hard time. But IKON Marketing
Consultants reports that in India there are few sectors which will
grow in this adverse situation..
AS EVERY business sector is affected by present global crisis and
everybody is talking of slow down in business, still in India there
are few sectors which will grow in this adverse situation. Lets have a
look.
1. Food
No one can survive without basic food material like milk, vegetables
and drinking water. Food processing companies will not be affected
much and rather will earn profits by increasing the prices. These are
the basic needs which we as a common man can not produce by our self.
According to Ministry of Food Processing Industry (MFPI), the food
processing industry in India was seeing growth even as the world was
facing economic recession. According to the minister, the industry is
presently growing at 14 per cent against six to seven per cent growth
in 2003–04.The Indian food market is estimated at over US$ 182 billion
and accounts for about two thirds of the total Indian retail market.
Further, the retail food sector in India is likely to grow from around
US$ 70 billion in 2008 to US$ 150 billion by 2025
2. Railway
As the aviation sector has been affect much badly and resulting in
sharp rise in the air ticket rates the frequent travellers will prefer
railways to cut the cost of travelling and this will result in
increased traffic in railways and long queues at railway booking
counters. The freight traffic of Indian Railways has continued to grow
in the last few months, albeit at slow pace, indicating only marginal
impact of the global recession on the Indian economy.
The railways registered 13.87 per cent growth in revenue to Rs
57,863.90 crore in the first nine months ended December 31, 2008.
While total earnings from freight increased by 14.53 per cent at Rs
39,085.22 crore during the period, passenger revenue earnings were up
11.81 per cent at Rs 16,242.44 crore. The railways have enhanced
freight revenue by increasing its axle loading, improving customer
services and adopting an innovative pricing strategy.
3. PSU Banks
As seen in the private sector much of the job cuts due to global
slowdown, its the public sector undertaking (PSU) banks which gained
much confidence due to job safety and security. More and more people
are likely to turn towards government institutions, particularly banks
in the quest for safety and security.
A report "Opportunities in Indian Banking Sector", by market research
company, RNCOS, forecasts that the Indian banking sector will grow at
a healthy compound annual growth rate (CAGR) of around 23.3 per cent
till 2011.
4. Education
As education is considered as the basic necessity and in India it is
seen as a long term investment by parents and with respect to the
demand still there is a huge supply gap. The craze to study in foreign
university among the Indian youth still alive which will prompt
foreign education institute to target India provided vast young
population willing to join. We will see more and more foreign
educational institutions coming up in India in recent coming years.
Huge government as well as private investment is likely to flow into
the Indian educational system. D E Shaw, a US$ 36 billion, global
private equity firm is planning to invest around US$ 200 million in
the Indian education sector.
5. Telecom
People will not stop to communicate with each other due to global
crises rather it has been seen that it will increase much particularly
with mobile communication. With cheap cell phones available in the
Indian market and cheaper call rates, the sector has become the
necessity and primary need of everyday life.
Telecom sector, according to industry estimates, year 2008 started
with a subscriber base of 228 million and will likely to end with a
subscriber base of 332 million – a full century. The telecom industry
expects to add at least another 90 million subscribers in 2009 despite
of recession. The Indian telecommunications industry is one of the
fastest growing in the world and India is projected to become the
second largest telecom market globally by 2010.
6. IT
Recent news shown that Indian IT sector will grow 30 to 40 per cent
next year. And on the other side to survive in current slowdown,
industries have to decrease the cost and for that they will resort to
customised IT solutions which will further boost up the software
solution demand.
India is fast becoming a hot destination for outsourced e-publishing
work. As per a Confederation of Indian Industry (CII) report, the
industry is growing at an annual rate of 35 per cent and India's
outsourcing opportunities in the value-added and core services such as
copy editing, project management, indexing, media services and content
deployment will help make the publishing BPO industry worth US$ 1.46
billion by 2010.
7. Health care
India in case of health care facilities still lakes the adequate
supply. In health care sector also there is huge gap between demand
and supply at all the levels of society. Still there are so many urban
areas were you could hardly find any multi specialty hospital. And in
case of metros the market sentiments itself created a need of
psychological consultation.
Healthcare, which is a US$ 35 billion industry in India, is expected
to reach over US$ 75 billion by 2012 and US$ 150 billion by 2017. The
healthcare industry is interestingly poised as it strives to emerge as
a global hub due to the distinct advantages it enjoys in clinical
excellence and low costs.
8. Luxury products
The high and affluent class of society will not be affected much by
this global crises even if their worth is reduced significantly. They
will not change their lifestyle and will not stop spending on
luxurious goods. So luxurious product market will not be affected and
in fact to maintain the lifestyle those affluent will spend more for
it. Luxury car makers are pouring in to woo the nouveau riche (Audi,
BMW are the most recent entrants).
9. M&A & Marketing Consultants
As in the current business slow down survival will be the main focus,
the marketing and management consultants will be called for to reduce
the costs and to show the ways to survive and stay in market. Others
may join hands to fight with this situation together will call for the
Marketing & M&A consultants. In a booming market there are growth
strategies and M&A opportunities to advise on. When businesses are
cutting back, consultancies will be right there to help clients decide
where to wield the axe.
According to Ministry of Commerce and Industry's estimation, the
current size of consulting industry in India is about Rs 10000 crores
including exports and is expected to grow further at a CAGR of
aproximately 25 per cent in next few years.
10.
Media and Entertainment
In current bad times, where people are losing jobs and getting enough
time to watch TV, they will seek entertainment at home and hence
advertising revenues will increase for the commercial channels. Also
businesses like production of religious texts and religious materials,
religious channels will do well. The TRP of religious channels will
increase compare to the other entertaining/commercial channels.
According to a report published by the Federation of Indian Chambers
of Commerce and Industry (FICCI), the Indian M&E industry is expected
to grow at a compound annual growth rate (CAGR) of 18 per cent to
reach US$ 23.81 billion by 2012. According to the PWC report, the
television industry was worth US$ 5. 48 billion in 2007, recording a
growth of 18 per cent over 2006. It is further likely to grow by 22
per cent over the next five years and be worth US$ 12. 34 billion by
2012.
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