INSUBCONTINENT EXCLUSIVE:
By DK AggarwalIndia's journey on the path of economic reforms has given birth to many emerging sectors
A classic example is the evolution of NBFCs, which has played an important role in financial inclusion by complementing the banking sector
in reaching out credit to the unbanked segment of society, especially MSMEs.
As of now, many sectors such as banking, IT and pharma have
seen growth at a decent pace, and they have reached their saturation points
Due to recent implementation of demonetisation and GST, industries in India have faced a lot of challenges
Economic growth has stagnated, leading to hiccups in many sectors
But we are sure it is going to be shortlived
At this juncture, emerging sectors such as e-commerce, insurance and MSME are on the verge of the rapid growth
India, with one of the largest customer bases, has always welcomed innovative concepts, products and incipient players in the business
The country has witnessed the most promising internet revolution in the hands of e-commerce players
The sector has experienced phenomenal growth, breaking down old shopping habits and inculcating new ones
It is expected that e-commerce may boost drying consumption demand from Tier II and Tier III cities
With a gigantic 43 per cent CAGR growth rate, e-commerce regime is growing and is expected to reach $137 billion by 2020.
Many new leaders
like Paytm, Myntra-Jabong have already established good brand values and a strong tussle is on between e-commerce giants for a bigger share
So, they are roping in customers with heavy discounts, aggressive marketing and business promotion
To increase participation of foreign players in e-commerce and provide support to the sector, the government has hiked the FDI limit in
e-commerce for up to 100 per cent (in B2B models).
Another promising sector is insurance, which has the lot of potential to capture the
As a whole, the sector is going through a fundamental shift and has been on the forefront of economic development in India
As digital technology has the ower to break traditional barricades of the insurance sector, such as lack of awareness level, limited
customer touch points, access to knowledge, service availability and payments
The government policy of insuring the uninsured has gradually pushed insurance penetration in the country, helping proliferation of
The future of the life insurance sector looks promising, with several changes in the regulatory framework and permission of up to 49 per
Many foreign companies have already invested in domestic insurance companies
This business is bound to become more dynamic and competitive in the years ahead.
The MSME sector, too, is the most vibrant and dynamic one,
promising high growth potential for the economy
There are many factors boosting growth in this space, like technological advancement, economic needs and government’s policy push, like
The government is putting all efforts to support the sector
It has always been generous to the MSME sector, enabling it to boost employment and increase growth
Efforts are likely to boost the emergence of new startups in this field while also strengthening the economic and market standing of
existing enterprises.
Chairman and MD, SMC Investments and Advisors
