SUNRISE SECTOR OF INDIAN ECONOMY

 Sunrise industry is a term used for a sector that is just in its infancy
but shows promise of a rapid boom.
 The industry is typically characterized by high growth rates, high
degree of innovation and generally has plenty of public awareness about
the sector and investors get attracted to its long-term growth prospects.
 On the other hand Sunrise industry rapid emergence may threaten a
competing industry sector that is already in decline. Because of its dim
long-term prospects, such an industry is referred to as a sunset industry.
Existing Indian sectors that can be termed as Sunrise sectors and likely to
hold us in good stead in the future in terms of employment generation and
business growth are:

 Information Technology
 Telecom Sector
 Healthcare
 Food Processing Industry
 Retail Sector

INFORMATION TECHONOLOGY
The global sourcing market in India continues to grow at a higher pace
compared to the IT-BPM industry. India is the leading sourcing destination
across the world, accounting for approximately 55% market share of the US$
200-250 billion global services sourcing business in 2019-20. Indian IT & BPM
companies have set up over 1,000 global delivery centres in about 80
countries across the world.

Total number of employees grew to 1.02 million cumulatively for four Indian IT
majors (including TCS, Infosys, Wipro, HCL Tech) as on December 31, 2019.
Indian IT industry employed 205,000 new hires, up from the 185,000 jobs added
in FY19 and had 884,000 digitally skilled talents in 2019.
 TELECOM SECTOR
Currently, India is the world’s second-largest telecommunications market with
a subscriber base of 1.16 billion and has registered strong growth in the last
decade. The Indian mobile economy is growing rapidly and will contribute
substantially to India’s Gross Domestic Product (GDP) according to a report
prepared by GSM Association (GSMA) in collaboration with Boston Consulting
Group (BCG). In 2019, India surpassed the US to become the second largest
market in terms of number of app downloads.

India ranks as the world’s second largest market in terms of total internet
users. The number of internet subscribers in the country increased at a CAGR
of 21.36% from FY16 to FY20 to reach 743.19 million in FY20. Total wireless
data usage in India grew 11.01% quarterly to reach 25,369,679 TB in Q1FY21.

Over the next five years, rise in mobile-phone penetration and decline in data
costs will add 500 million new internet users in India, creating opportunities
for new businesses.

HEALTHCARE SECTOR

Healthcare has become one of India’s largest sector, both in terms of revenue
and employment. Healthcare comprises hospitals, medical devices, clinical
trials, outsourcing, telemedicine, medical tourism, health insurance and
medical equipment. The Indian healthcare sector is growing at a brisk pace
due to its strengthening coverage, services and increasing expenditure by
public as well private players.

Indian healthcare delivery system is categorised into two major components

public and private. The Government, i.e. public healthcare system, comprises
limited secondary and tertiary care institutions in key cities and focuses on
providing basic healthcare facilities in the form of primary healthcare centres
(PHCs) in rural areas. The private sector provides majority of secondary,
tertiary, and quaternary care institutions with major concentration in metros
and tier I and tier II cities.

Indian medical tourism market is growing at 18% y-o-y and is expected to

reach US$ 9 billion by 2020. There is a significant scope for enhancing
healthcare services considering that healthcare spending as a percentage of
Gross Domestic Product (GDP) is rising. The Government’s expenditure on
healthcare sector has grown to 1.6% of the GDP in FY20BE from 1.3% in FY16.

FOOD PROCESSING INDUSTRY

The Indian food industry is poised for huge growth, increasing its contribution
to world food trade every year. In India, the food sector has emerged as a high-
growth and high-profit sector due to its immense potential for value addition,
particularly within the food processing industry.

Accounting for about 32 per cent of the country’s total food market, The
Government of India has been instrumental in the growth and development of
the food processing industry. The government through the Ministry of Food
Processing Industries (MoFPI) is making all efforts to encourage investments
in the business. It has approved proposals for joint ventures (JV), foreign
collaborations, industrial licenses, and 100 per cent export oriented units.

The online food ordering business in India is in its nascent stage, but
witnessing exponential growth. With online food delivery players like
FoodPanda, Zomato, TinyOwl and Swiggy building scale through partnerships,
the organised food business has a huge potential and a promising future. The
online food delivery industry grew at 150 per cent year-on-year with an
estimated Gross Merchandise Value (GMV) of US$ 300 million in 2016.

RETAIL SECTOR
Indian retail industry has emerged as one of the most dynamic and fast-paced
industries due to the entry of several new players. Total consumption
expenditure is expected to reach nearly US$ 3,600 billion by 2020 from US$
1,824 billion in 2017. It accounts for over 10% of the country’s gross domestic
product (GDP) and around eight% of the employment. India is the world’s fifth-
largest global destination in the retail space.

India ranked 73 in the United Nations Conference on Trade and Development's

Business-to-Consumer (B2C) E-commerce Index 2019. India is the world’s fifth
largest global destination in the retail space and ranked 63 in World Bank’s
Doing Business 2020.
After an unprecedented decline of 19% in the January-March 2020 quarter, the
FMCG industry displayed signs of recovery in the July-September 2020 quarter
with a y-o-y growth of 1.6%. The growth witnessed in the fast-moving
consumer goods (FMCG) sector was also a reflection of positivity recorded in
the overall macroeconomic scenario amid opening of the economy and easing
of lockdown restrictions.