Major sectors to
look forward
Siddharth Mehta
What are the major sectors to look out for
multi-decadal opportunities?
Founder & CIO of Bay Capital Siddharth Mehta says,
“Opportunities available from four broad themes include
‘digitalization, financialization, specialized outsourcing, and, at
the core of it all, consumption’. These are multi-decadal
opportunities, and it is our conviction that very high-quality
companies addressing these themes will be able to deliver longterm compounding returns.”
The Asian Development Bank predicts that the Indian economy will
expand by 8% in FY2023, supported by rising public infrastructure
expenditure and a rise in private sector investment. Investors are
willing to allocate a higher portion of their savings to capital
instruments in 2022 as a consequence of the success of their
investments in the final fiscal year of 2021. They are also inspired
to invest in India's expanding industries.
As Siddharth Mehta of Bay capital addressed that he is looking
forward to India’s digital economy boom and is ready to invest in it
for a long-term return. He also suggests new entrepreneurs keep
an eye on the Indian economy and take a deep dive into it for
better opportunities and rerun on investment.
Numerous experts speculate that by the end of the fiscal year
2022, the Indian Stock Market will also have progressed and
expanded to being the fifth largest in the world, in account of the
highest market capitalization. Undoubtedly, the market will expand,
with various stepping elements such as government initiatives,
foreign relations, market dynamics, and so on supporting this
expansion.
According to Finance Minister Nirmala Sitharaman, India's digital
economy is predicted to increase exponentially to $800 billion by
2030 as a result of rising internet penetration and rising affluence
(2022).
Talking about digitalization, with a median age in the 20s, a young
population, rising broadband and internet penetration, exponential
data absorption, and, most crucially, the government's emphasis on
digitalization, India is quickly moving toward a digital revolution. In
fact, it wouldn't be out of place to suggest that a transition is well and
fully underway in some industries, such as fintech, as the Unified
Payments Interface (UPI) processes payments totaling more than $1
trillion.
Through altering the structure and operation of financial markets,
as well as having an influence on business conduct and economic
policy, financialization has an impact on both the macroeconomy
and the microeconomy. Additionally, financialization has led to a
greater rise in incomes in the financial industry than in other
economic sectors. Securitization, a phenomenon brought on by
financialization in recent years, has seen a significant rise in the
quantity and variety of financial products traded.
A business practice known as outsourcing is hiring a third party to
carry out duties, manage operations, or offer services on the
company's behalf. This type of business has a chance to boom in
the next 2 to 3 years and stay in the business for many decades.
For long-term investments, it makes sense for a wise investor to
put money into India's expanding industries. However, there is a
key lesson to be drawn from this: not every expanding industry will
offer fantastic profits. Diversification is the greatest strategy for
choosing the finest investing industries in India. Spend money on
several industries you think will expand, decreasing risk and
making sure you don't miss out on any flourishing industries.