In this menu you find information on Indian sectors in focus and the Trade Council’s sector expertise.
The sectors are more or less divided between the Embassy in New Delhi and the Trade Commission in Bangalore:
The Royal Danish Embassy, New Delhi
- Banking, Finance & Service Sector
- Biotech & Pharma Industry (Lifescience)
- Building, Construction & Infrastructure
- Environment Sector
- ICT & Electronics Industry
- Defence Industry
- Food, Agriculture & Agrobusiness
- Maritime, Transport & Logistics Sector
- Water Sector
The Danish Trade Commission, Bangalore
- Energy sector: Bio Fuel Energy, Biomass Energy, Oil & Gas Energy, Solar Energy, Wind Energy
- Metal Machinery Sector
- Corporate Social Responsibility (CSR)
- Retail sector: Furniture, Design, Kitchen, Textiles, Jewellery
Specific sectors of growth
India’s GDP growth rate has averaged 7% p.a. since 1997, but some sectors have contributed more than others to this growth. You can find information on some of these sectors below.
Building, Construction & Infrastructure
Due to the strong economic growth India has been in an acute shortage of physical infrastructure in the form of roads, airport capacity, and ports. Moreover, the increased urbanisation causes urgent demand for safe drinking water and sanitation, sewages and green tech solutions. These challenges have caused the government to invest massively in the development of infrastructure. Several ambitious projects have been launched, and there is high potential for Danish firms to participate in the projects by contributing with state-of-the-art technology through Public Private Partnerships (PPP) with the government. India allows 100% FDI in construction of ports, roads and customs airports.
High GDP growth rates and a rapidly growing middle class have meant a significant increase in the demand for energy. Stable energy and energy efficiency is a high priority on the political agenda in India. The goal is to increase capacity from 120,000 MW to 400,000 MW in 2030. The existing power plants are in poor condition due to lack of maintenance, poor management and considerable wastage in transmission of electricity. The electricity sector in India therefore demands expertise, equipment, cables, plants and energy-saving and eco-efficient practices.
India spends 6-7% on healthcare p.a. Many reports point out that the healthcare sector will be of even greater importance in the future, and the sector is expected to spur economic growth in India. The Indian healthcare sector is predicted to reach USD 150 billion by 2017, and USD 250 billion by 2020. The healthcare system has improved significantly over the past years, and a combination of economic and demographic factors is expected to grow the sector at 11% p.a. in the period 2012-2025. The growth will primarily be driven by the growing middle class, increased consumption, changes in consumption patterns, increases in disposable incomes, increased urbanization etc. However, there are some challenges to be addressed e.g. in terms of accessibility of healthcare service, and lack of doctors and nurses.
The Indian telecom sector has in recent years been characterized by a rapidly evolving development and are expected over the next decade to become one of the largest markets in the world for telecommunications equipment. This projected growth is primarily fuelled by the large population demanding wireless telephony - the number of mobile subscribers is increasing rapidly and reached around 1.16 billion in 2013. However, the Indian telecom industry is not confined to basic telephone, but extends to internet broadband, cable TV, SMS, IPTV, soft switches etc.
IT and IT-based services
The Indian IT sector's growth continues unabated, dominated by foreign demand. Due to reasonably priced labor, favourable business ambiance, and the availability of an expert workforce India has in fact become the most favourable outsourcing hub for firms who wish to offshore their IT operations. Domestic demand is on track to become more significant due to India's growing participation in the global marketplace. The Indian IT industry is on its way up the value chain, and attracts increasing functions, financial analysis and clinical research that require more expertise and specialized knowledge.
The Indian textile industry contributes 4% to the GDP, accounting for 16% of India's exports and directly employs more than 35 million people. India has a natural competitive advantage in the form of large base of raw materials as cotton (second largest producer in the world), plenty of cheap skilled labor and have a well-developed supply chain, ranging widely from hand-woven fabrics, sophisticated capital-intensive spinning into yarn producers. The textile industry is organized in clusters (roughly 70) across India, producing about 80% of its total textiles. Household textiles is expected to become the new major growth area.
Market and sector reports, analysis, and newsletters
The Trade Council regularly develops market and sector reports, analysis and newsletters about the Indian market.
Click here to find reports, analyses, and newsletters from The Danish Trade Council (in Danish).