These 9 Sectors In India Are Expected To Boom In 2022

Previous year, 2021, was a great year for the market, startups, companies as well retail investors. The year ended stock market both Nifty and Sensex in green, bringing joy to investors on the last day of 2021. The year was also great for various sectors such as Fintech, EVs, and Digital. The year 2022 seems even more promising as many experts predicted that the Indian Stock market will grow and take the 5th spot globally in market capitalization. Indeed, the market will boom and this boom will be backed by several factors such as government policies international affairs, market conditions, and so on. This growth will further strengthen the sectors and help them to boom to their limits. However, this all depends on the market and the then situation. These sectors are as follows:

Automobile

The Indian automobile sector is heading into 2022 with a bullish outlook in its effort to reclaim pre-pandemic sales volume, having laid a solid foundation in 2021 despite manufacturing being hampered by a semiconductor scarcity. Furthermore, the sector has the strong backing of the government with favorable policies, such as the FAME-II scheme, the enhancement of incentives for two-wheelers, and the launch of the production-linked incentive (PLI) scheme sector and PLI for advanced chemistry cell, worth INR 26,000 crore and INR 18,000 crore, respectively. This backing will not only help the sector to stand up to its pre-pandemic era but also provide enormous support to the sector as it adopts advanced technologies.

Textile

The domestic textile sector, which saw demand fall in fiscal 2021 due to the commencement of the Covid-19 pandemic, is on track to rebound in fiscal 2022 as a result of the reopening of enterprises, educational institutions, and retail outlets, as well as an increase in the vaccinated population. Sanctions on Chinese textiles have also encouraged Indian textile exports. A CRISIL analysis also says that the Textile firms are set to spin their way to recovery in 2022. Furthermore, Government initiatives such as the Production Linked Incentive Plan, the establishment of mega textile parks, and the extension of the Rebate of State and Central Taxes and Levies scheme are also helping the sector.

Retail

The retail business is undergoing a substantial transition in response to changes in customer behavior across the globe.  The sector desire for more convenience in the post-COVID. To meet the rising demand of the Indian customer, retailers are implementing an omnichannel strategy and expediting the incorporation of digitalization, and developing new-age technology into their operations. The industry's future will be determined by its ability to embrace a multi-channel approach in the face of the epidemic. When online and offline channels compete, physical retail or omnichannel distribution appears promising. In addition, e-commerce is growing quickly in the country. Customers enjoy an ever-expanding selection of items at the lowest prices. E-commerce is most certainly causing the greatest transformation in the retail business, and this trend is expected to continue in the coming years.

FinTech

Before the epidemic, there had been a tremendous acceleration in FinTech acceptance, with adoption doubling every two years. When the globe was hit by the epidemic, FinTech became a critical commodity for all organizations in order to stay afloat in these turbulent times. Advanced technology, along with the demand for financial market fluidity, facilitated the rapid adoption of FinTech solutions, and even the most skeptic firms were pushed to accept it. While 2020 and 2021 were years of FinTech acceptance, 2022 and beyond will be years of innovation and revolution.

Pharma or Indian pharmaceutical sector (IPS)

The Pharma sector is linked with the healthcare sector, as the healthcare sector is expected to grow in 2022, the pharma sector is also looking forward to a promising year ahead. According to rating agency ICRA, the IPS would grow at a rate of 9-11% in 2021-22, with domestic and developing markets driving growth in the next quarters. According to ICRA, revenue growth in the second quarter of FY22 was mild at 6.4%, down from 16 percent in the first quarter of 2021-22 in a sample of 21 Indian pharmaceutical businesses. The normalization of the base and price pressures in the US market were the key causes for the decreasing growth momentum in Q2 FY22, even if growth in domestic and developing markets remained solid, according to ICRA.

Real Estate

The Indian housing market is showing signs of recovery and is likely to gain traction in the coming months. With robust end-user demand and relaxed market circumstances, average sales volume is likely to exceed the pre-Covid year's average quarterly sales in 2019. The unfolding of situations as a result of Omicron would be a critical component in influencing the sales momentum as a result of any lockdowns. Experts believe that digital marketing and online registrations would help overcome this obstacle. The growth levels have already been reached in key property markets such as Pune, Hyderabad, Bangalore, Ahmedabad, and Mumbai.

Healthcare

The last 2 years were a really challenging year for the healthcare industry due to the COVID-19 pandemic, however, the industry overcome every challenge. The time ahead is indeed also promising as now, the sector is well equipped and planned. According to the Healthcare Information and Management Systems Society's 'Future of Healthcare Report,' over 80% of healthcare systems want to expand their investment in digital healthcare technologies over the next five years. According to Invest India research, the healthcare business in India is expected to reach $372 billion by 2022. The hospital business in India account 80% of the healthcare industry, and it is expected to grow at a CAGR of 16-17% to $132.84 billion by FY22 from $61.79 billion in FY17.

Renewable Energy

Following a year of uncertainty, India's renewable energy sector is expected to boom in 2022, with an estimated investment of more than USD 15 billion as the government focuses on EVs, solar equipment manufacturing, green hydrogen, and meeting the ambitious 175 GW renewable capacity target. India has somewhat more than 150 GW of installed renewable energy producing capacity, with an aim of achieving 175 GW by 2022. Solar would provide 100 GW, wind would provide 60 GW, bio-power would provide 10 GW, and small hydropower projects would provide 5 GW.

FDI inflows into India's non-conventional energy industry totaled US$ 10.28 billion between April 2000 and June 2021, according to statistics supplied by the DPIIT (Department for Promotion of Industry and Internal Trade). In 2018, the country's new renewable energy investment was US$ 11.1 billion. According to the analytics firm British Business Energy, India would be ranked third in the world in terms of renewable energy investments and ambitions in 2020.

Chemical

India is a major dye provider, accounting for 16% of global dyestuff and dye intermediary output. India has a substantial position in the export market for dyes, medicines, and agro-chemicals. Japan, Germany, the US, Singapore, Spain, Switzerland, Turkey, and the UK, are among the countries that import dyes from India. By 2022, the Indian dyes and pigments industry is expected to be worth US$63 billion. Small and medium-sized firms in the domestic chemicals industry are predicted to grow by 18-23% in FY22, owing to increased domestic demand and greater realization due to high chemical prices. Furthermore, with the exception of a few hazardous chemicals, industrial license and 100% FDI through the automatic method are permitted in the chemical industry making it a promising industry in 2022.