The Indian banking system consists of 20 public sector banks, 22 private sector banks, 44 foreign banks, 44 regional rural banks, 1,542 urban cooperative banks and 94,384 rural cooperative banks in addition to cooperative credit institutions. According to RBI, as of June 26, 2020, India recorded foreign exchange reserves of approximately US$ 506.8 billion.

Rising income is expected to enhance the need for banking services in rural areas, and therefore, drive the growth of the sector.

The digital payments revolution will trigger massive changes in the way credit is disbursed in India. Debit cards have radically replaced credit cards as the preferred payment mode in India after demonetisation.

India is a land full of opportunities for players in the medical devices industry. Healthcare has become one of India’s largest sectors - both in terms of revenue and employment. World’s largest Government-funded healthcare programme was launched by Government of India. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, greater health awareness, increasing access to insurance & increasing expenditure by public as well private players.

India's competitive advantage lies in its large pool of well-trained medical professionals. India is also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe.

India is the leading sourcing destination across the world, accounting for the largest market share of the global services sourcing business. It is the Second largest tech startup hub of the world. The IT-BPM industry stood at $177 Bn in 2019 and is expected to grow to $350 Bn by 2025. The IT-BPM industry is the largest contributor to the total exports of the country, with 43% of the IT-BPM services being exported in 2018. Total revenue from IT services & BPM for FY2019-20 accounts for $135 bn.

The sector is headed towards achieving $1 Tn digital economy by 2022. The country has become the global digital capabilities hub with around 75% of global digital talent present in the country.

India is an attractive hub for foreign investments in the manufacturing sector. The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025 and India is expected to rank amongst the top three growth economies and manufacturing destination of the world by the year 2020. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of US$ 2.5 trillion along with a population of 1.32 billion people, which will be a big draw for investors.

With impetus on developing industrial corridors and smart cities, the Government aims to ensure holistic development of the nation.

India is the 3rd largest pharmaceuticals industry in the world by volume. Bio-Pharma is the largest sector contributing to 64% of the total revenue. India is emerging as a key market for Medical Devices and Diagnostics. Indian pharmaceutical sector industry supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in UK.

• Government of India’s “Pharma Vision” aims to make India a hub for end-to-end drug discovery.
• 100% FDI is allowed under the automatic route for greenfield pharma.
• 100% FDI is allowed in brownfield pharma; wherein 74% is allowed under the automatic route and thereafter through Government approval route.

The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. The Government of India is committed to increased use of clean energy sources and is already undertaking various large-scale sustainable power projects and promoting green energy heavily. This has made the sector quite attractive for foreign and domestic investors. The renewable energy will account 55% of the total installed power capacity by 2030. With a potential capacity of 363 gigawatts (GW) and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.

India is the second largest telecom network in the world. Also, it has the secondhighest subscriber base in the world. Tele-density has increased from just 18.23% in FY16to 87.37% in FY20. The average monthly wireless data usage stands at 11 GB. Governmentof India is keen on greater digital coverage and as such, INR 14,200 crore was allocated tothe telecom sector in Budget 2021. The Department of Telecommunications is targeting100% internet coverage for villages by 2022. India will have 1 billion installed devices by2025. In the same duration, there will be 920 million unique subscribers out of which 88million subscribers will be using 5G. 100% FDI is approved in the sector. Government isincentivizing the sector through PMP (Phased Manufacturing Program) and PLIS (ProductionLinked Incentive Schemes)

India is the fourth largest auto market in the world. The Indian Automotive Industry(including auto component manufacturing) is expected to reach $251-$280 billion by 2026.With growing population, rising household incomes and better roadway connectivity,demand for automobiles is expected to show strong growth. India is expected to become amarket leader in shared mobility in the coming years. Electric Vehicles’ sales grew by 20%in 2020.

Infrastructure in India is expected to become the third-largest construction market globally by 2022.Availability of electric power, a key factor in Infrastructure projects has been growing at aCAGR of 7.19% for the past 5 years.

The incumbent government has been consistently allocating higher proportions ofbudget for the Infrastructure segment. FDI in infrastructure projects like townships,housing, and construction development have been increasing consistently. With initiativeslike ‘Housing for All’ and ‘Smart Cities’, the Government is looking to accelerate thedevelopment in infrastructure projects.

Under Infrastructure, affordable housing projects, airports, roadways, logistics andwarehousing are areas providing room for significant growth.