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Illustration: Binay Sinha
“Key industries beckoning foreign investors in India in 2024 include healthcare and insurance, fintech, renewable energy and climate tech, electric vehicles and automobiles, IT and services, real estate and infrastructure, fast-moving consumer goods (FMCG), and R&D, tech innovation, and artificial intelligence (AI). These have all been on a hot streak in 2023, as foreign direct investment (FDI) policies have relaxed in recent years, and production-linked incentive (PLI) schemes have been promoted,” said Devang Shah, Head Retail, ACMIIL.
India’s digital economy will continue to attract investors as technology-based solutions are sought to transform people’s lives, governance, and enterprise operations. The rapid growth in demand for online products and services reflects the increasing spending power of India’s non-metropolitan (tier-2 and tier-3) cities, noted the report. The digital economy accounted for 4-4.5 percent of the total GDP in 2014 and is currently at 11 percent. The government projects the digital economy to make up more than 20 per cent of Indian GDP by 2026.
“Emerging industries poised for investment-led growth in 2024 are battery energy storage solutions, green hydrogen, biotechnology, AVGC (animation, visual effects, gaming, comics), and semiconductor chip manufacturing, assembly, and
design. Foreign companies looking at the Indian market are at an advantage as state governments are flexible and offer competitive sops to attract cutting-edge technology and generate large-scale employment”, said Deena Mehta, Group Managing Director, ACMIIL.
Increasing India’s participation in global value chains is a top target for both government and domestic market stakeholders. So far, export performance of the mobile industry is a first step toward deeper supply chain engagement. Furthermore, India has intensified its decarbonization initiatives amid shifts towards renewable energy, and aims to achieve 500 GW renewables capacity by 2030. In the corporate sector, sustainability and ESG is on the radar of top organizations and manufacturing enterprises as green tech skills will influence hiring decisions to key roles in 2024, said the report.
According to an industry report by TeamLease Digital, India’s green industry is expected to add 3.7 million jobs by FY 2024-25 to the current 18.5 million. The top sought skills are in renewable energy, environmental health safety, solar energy, corporate social responsibility, and sustainability.
“India will be seeking greater global collaboration in the realm of technology, resource management, and green skilling to grow its domestic expertise in these critical areas. Bridging knowledge gaps, however, will not be limited to manufacturing and corporate sectors as farming and agriculture which serve as India’s economic backbone also require long-term investment in sustainability skills, green tech, and data application,” said Madhu Lunawat, CIO of impact investing Fund, India Inflection Opportunity Fund.
2024 will be a positive for real estate
2024 is anticipated to be positive across the residential, office, and warehousing segments. According to industry analyst Knight Frank’s New Horizon Outlook 2024 report, Mumbai is poised for a 5.5 percent increase in prime residential prices during the year, attributed to robust demand and a thriving economic environment.
The warehousing market is expected to benefit from the decentralization of supply chains and the government’s emphasis on manufacturing. In the office space, India, alongside China, is projected to lead Grade-A office supply in the Asia-Pacific (APAC) region in 2024.
“Opportunities across the infrastructure domain will be attractive as the federal and state governments implement long-term blueprints to bolster regional air/road/railway connectivity,” said the report.
First Published: Jan 01 2024 | 10:02 AM IST
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