Sunrise sectors of India set to be worth $111.4 billion by 2025

 

                                               Representational Image

 If you are new to the concept of a sunrise sector, this is a phrase used to describe an industry in India that is immature yet fast-growing. Sunrise sectors are industries that are expected to have a bright future and can make a positive difference to the bottom line of a nation’s economy.

With that in mind, let’s take a look at three of India’s most prominent sunrise sectors in 2021, assessing their commercial and consumer impact in recent months and years.

IT and business processing

The world of eCommerce has redefined the way business works in India. Order volumes of online goods and services grew by 36% in Q4 2020. The most popular eCommerce segment is the personal care, beauty and wellness (PCB&W) segment, which has taken full advantage of the 780 million-plus active internet users in India which IBEF states is accurate as of May 2021.

In 2020, the IBEF states the Indian eCommerce market was worth $46.2 billion but this could more than double to $111.4 billion by 2025. The penetration of the internet and smartphones has transformed consumers’ accessibility to retailers, with its consumer digital economy projected to become worth $800 billion by the turn of the next decade.

Media and entertainment

India’s media and entertainment sector is most definitely a sunrise sector for the country’s economy. As of 2016, Stock Axis is valued at approximately $20 billion, and a report from FICCI-EY in 2021 states it will grow to a value of $23.29 billion by the end of this year.The contribution of digital and online entertainment revenues to India’s media and entertainment arm is up from 16% in 2019 to 23% in 2020. This is largely due to the growing proliferation of iGaming operators that are one of the fastest-growing subsectors in India’s media and entertainment scene. It is a country that is ripe for growth in iGaming, given that 560 million people have access to the internet.

Statista estimates the number of iGamers in India will rise from 300 million in 2019 to just over 500 million in 2022. That’s due largely to the raft of established iGaming brands that are opening their doors to Indian users. These are brands that have been serving regulated European markets for many years now. As this review highlights, LeoVegas India is one such example of a brand that’s won numerous EGR awards and is licensed by the UKGC and MGA. It aims to have a global presence, catering for Canada and New Zealand as well as the likes of India where no regulatory framework yet exists for iGaming operators. This is just one example of how global expansion can benefit this sector within India.

Automotive

The Indian automotive sector may not be a sunrise sector in the strictest sense, given that it has been accounting for up to 12% of GVA in India’s manufacturing sector for decades. Nevertheless, it is experiencing something of a renaissance in recent months. The industry is projected to account for 65 million new jobs by 2026, with automotive brands accelerating production, according to a report by McKinsey & Company.

Having previously been confined to the production of just 40,000 new vehicles annually in the 1950s, India is now the fourth-largest contributor to the global automotive sector from the Asia-Pacific last year. Historically, the focus in India has been to sell to first-time buyers of automobiles, but now this is shifting to repeat consumers. Government scrappage policies are making it attractive to sell older models and upgrade to newer, more carbon-efficient alternatives.

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