Pharma & Biotech

The Indian Pharmaceutical Industry, has grown at a CAGR of 13.5% during the last 5 years. It is ranked 4th in volume terms and 15th in value terms (US$ 8 Bn) globally. India’s share in the global pharmaceutical market is less than 2% in value terms as drug prices in India are one of the lowest in the world.

The playing field for the domestic pharmaceutical companies changed completely with the advent of product patent regime from January 2005. The IPI is now exposed to a host of new opportunities and risks. This has led the domestic pharmaceutical companies to pursue various strategies on the business and R&D front with the aim of achieving long-term sustainable growth under the new regulatory regime. Besides changes in the patent laws, the issues with respect to drug pricing and the Union Pharmaceutical policy will shape the regulatory environment for the industry in future.

Research & Development

The Indian economy continues to enjoy steady growth, the effects of which are also reflected in the Indian healthcare industry. The government of India is encouraging foreign investors to increase investments in R&D, which intersects with several opportunities for foreign investors. India is slowly becoming an R&D hub due to improvements in Infrastructure, Expertise, and obviously the cost of doing research. Many fortune companies have recently made India a destination of choice for their R&D initiatives.

Two of the numerous opportunities that India has to offer include collaborating with Indian health facilities or providing equipment to Indian medical centers. Outsourcing IT-services, bridging the gap between urban and rural areas and/or setting up ‘medical trips’ to Indian health centers are other examples for doing business in India.

Manufacturing

INDIA ON ITS WAY TO BECOMING A WORLD-CLASS MANUFACTURER

Driven by the emergence of a vast domestic market and relatively low-cost workers with advanced technical skills, more and more multinationals are setting up manufacturing operations in India. Ford, Hyundai and Suzuki all export cars from India in significant numbers. LG, Motorola and Nokia all either make handsets in India or have plans to start, with a sizeable share of production being exported. ABB, Schneider, Honeywell and Siemens have set up plants to manufacture electrical and electronic products for domestic and export markets.

"Indian universities graduate 400,000 engineers a year, second only to China. It's only a matter of time until India converts its engineering prowess into manufacturing capabilities."

FMCG

The Indian FMCG sector with a market size of approx. US$ 20 Bn is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector.

With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies.

Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth.

Retail

The consumer goods and retail sector is the fastest growing sector in India. Through the liberalization of the Indian retail sector, now is the time for European and American retail companies to invest in this sector. In addition, the Indian welfare is increasing, with rising double incomes. These consumers are looking for luxury, western oriented consumer goods. Therefore, there is a high potential for single normal brands or luxury brand stores.

Furthermore, the retail grocery business is booming. The mom-and-pop shops are well-known in India, while there is a lack in grocery multinationals. For the middle class consumers, this is a need and for companies an opportunity. The entry of Big players like Future group, Bharti-Walmart, etc is quickly changing the retail landscape of India.

Energy

The critical role played by the Energy industry in the economic progress of any country has to be emphasized, especially due to the fact that India is a Power Deficit country. A self sufficient power industry is vital for a nation to achieve economic stability. According to experts the private sector would play a greater role in power generation and foreign investments would increase considerably in his sector.

The government of India’s Hydrocarbon vision 2025 gives in detail the guidelines for the policies in India for the next 25 years to attract investment in exploration, production, refining and distribution of petroleum products. India offers tremendous potential especially for Renewable Energy companies due to its Energy deficit and its growing needs.

Engineering & Infrastructure

India is in the midst of the most ambitious infrastructure upgrade in its history. Better roads, ports, power and airports could easily nudge the nation's annual GDP growth rate up to a sustainable 8%. The Indian infrastructure can be divided into four sub sectors; airways, ports, railways and roads.

Each of these sub sectors is a crucial link regarding the connection between cities and villages of this enormous country. Due to fast development of the Indian industry in general, infrastructure in the country has not always been able to keep up the pace. Currently, this offers foreign investors great investment potential. Also 100% FDI is permitted in all these infrastructure sub-sectors, which opens up the market to global MNC companies.

Media & Entertainment

The Indian Media and Entertainment industry is currently entering a second phase of growth, which will be lead on the one hand by technology, and on the other by an enabling tax and regulatory infrastructure. Growing urbanization and consumerism are set to bolster media spending in India.

New revenue streams are growing rapidly. These include online film rental subscriptions, licensed digital distribution of music, music downloaded to mobile phones, and electronic books. A continued high growth in this industry can be expected. This because all forms of media are moving to a common digital form resulting into convergence, along with technological breakthroughs, provides scope for even higher growth.