What a memorable year it has been! In the midst of significant volatility, NIFTY50 reached an all-time high of 18,887.60. The markets have made erratic moves in both directions. Most investors are terrified of an impending economic recession and interest rate increases. But we’re confident that our community will remain quite optimistic about India’s economic progress and will keep onto wise investments.
In today’s special piece, we examine some of India’s most dynamic and promising industries that have the potential to thrive in 2023. You can discover more lucrative investment opportunities or possibly your subsequent multi-bagger!
Green Energy
The Center, state governments, business associations, and the general public must acknowledge the necessity of taking urgent climate action and promote it widely. It’s imperative that we act in concert to cut carbon emissions. To fulfil the expanding energy demands, we must swiftly expand the deployment of renewable energy:
By 2070, India intends to have net-zero carbon emissions.
By 2030, the Central Government plans to install 500 GW of non-fossil fuel electricity production capacity and obtain 50% of India’s energy needs from renewable sources.
In the same time frame, it also plans to save 1 billion tonnes of anticipated emissions. Reaching these green goals will be extremely difficult for India because of its continued reliance on fossil fuels.
The Indian renewable energy industry has reportedly received investments of around 5.2 lakh crore over the past seven years, according to the Ministry of Power in India. According to reports, this industry might receive investments totalling $500 billion (37.25 lakh crore) by 2028. In the fields of solar, wind, green hydrogen, and battery cell manufacture, we are witnessing some really ambitious undertakings.
Some of the businesses that have matched their business plans with the government’s green energy ambitions are listed below:
- Reliance Industries
- Adani Group (Adani Enterprises, Adani Green Energy)
- Tata Power
- Borosil Renewables (solar glass manufacturer)
- JSW Energy
- Sterling & Wilson (contract manufacturer of solar power infrastructure)
Speciality Chemicals
India is one of the marketplaces for all types of chemicals that is expanding the fastest in the globe. Our nation ranks sixth globally in chemical sales and contributes 4% to the chemical sector, according to recent estimates. Speciality chemicals, on the other hand, are a crucial subset of chemicals utilised as ingredients in finished products and to enhance production procedures. It represents 22% of the entire Indian chemicals market!
The need for food, clothing, medications, and transportation is significantly changing among the Indian middle class, which increases the demand for specialised chemicals. According to a report from the India Brand Equity Foundation (IBEF), the speciality chemicals market is predicted to reach $64 billion over the next four years with a CAGR of 12.4%. It makes sense why there are so many:
- Tata Chemicals
- Laxmi Organic Industries
- UPL
- Deepak Nitrate
- Aarti Industries
- PI Industries
The aforementioned businesses have been putting a lot of effort into enhancing their research and development (R&D) capacities in order to introduce new and enhanced products. The chemical industry has a very promising future. Click here to find out more about the top fertiliser and agrochemical companies!
Digital Transformations & Inclusion
Over the past few years, the information technology (IT) industry has expanded to new heights, particularly in artificial intelligence (AI), data analytics, data science, and big data. Government and business organisations all across the world are replacing outmoded, traditional processes with streamlined, customer-driven digital operations. Additionally, government programmes like Digital India aim to increase internet connectivity across the entire nation.
Telecom operators and network infrastructure providers are preparing for a pan-India rollout now that 5G has officially debuted in India. It will open the door to fresh economic prospects and advantages for Indian societies.
However, there is still a lot of space for growth as India only has a 47–48% internet penetration rate, compared to more than 90% in wealthy nations. Let’s examine a few of the organisations named that are driving the digital revolution:
- IT majors like Tata Consultancy Services, Infosys, and Wipro
- Telecom operators like Jio (Reliance Industries), Bharti Airtel
- Digital payments – SBI Cards & Payment Services, HDFC Bank, IndusInd Bank
- Online Communications Services – Route Mobile
Electric Mobility
From 2020 onward, the Government of India intends to sell 60-70 lakh hybrid and electric vehicles (EVs) annually. You may also be aware of a number of measures taken by the federal and state governments to boost EV manufacturing and sales.
Such initiatives’ main objective is to lower pollution levels by facilitating a smooth transition away from internal combustion engines (ICEs). Additionally, it will lessen India’s dependency on expensive gasoline imports.
Several Indian companies have already begun to work toward gaining a foothold in the rapidly evolving EV market:
- Tata Motors
- Mahindra & Mahindra
- JBM Auto Ltd (electric buses for public transportation)
- Electra Greentech
- TVS Motor Company
- Ashok Leyland (through its UK-based electric mobility arm Switch Mobility)
Made In India
Due to its prominence in global supply chains or manufacturing, China has earned the moniker “World’s Factory” for many years. It provided labour and production costs at low prices. Sadly, China’s Zero-COVID Policy has resulted in protracted industrial lockouts and damage to the supply chain. As a result, major international corporations are implementing a new strategy to diversify their portfolios beyond China. It is known as “China Plus One.”
Indian businesses could thus profit from this transition by analysing the demand in international markets and increasing manufacturing capacity. The Production Linked Incentive (PLI) plan is one of many programmes the government has launched to provide unique subsidies for businesses in important industries.
Numerous publicly traded businesses in our nation enjoy a competitive advantage to provide the best speciality chemicals, electronics (like Dixon Tech and Havel’s India), and textiles (Trident, Welspun India).
Now it’s up to you to choose the appropriate investment strategies or themes based on your financial objectives and personal characteristics. Invest in things you can easily comprehend from your own research. Let’s hope 2023 is a successful year! AWESOME INVESTING!
