India is among one of the fastest growing economy in the world. With the rising population, changing technology and financial systems, preference of investors will also see some changes in the upcoming times. We believe sectors such as E-Commerce, Financial Technologies, 3-D Printing, Drone-manufacturing companies and Artificial Intelligence are among the emerging sectors which investor can consider going forward.
India has the world’s fastest growing internet population; this could be a prime insight into the burgeoning potential for ecommerce in India. With increased access to smart phones, internet and the ease it brings with it in making the overall shopping experience more efficient, this could be the sector to watch out for over the next decade.
India’s financial technology (Fintech) sector may be young but is growing rapidly, fueled by a large market base, an innovation-driven startup landscape, and friendly government policies and regulations. Several startups populate this emerging and dynamic sector, while both traditional banking institutions and non-banking financial companies (NBFCs) are playing catch up. Indian citizens who have access to formal banking services is still extremely low around the 45 per cent levels, with more people coming in under the banking umbrella investments into the Fintech space will only compound over the coming years.
3-D printing is one of the most popular technical achievements of the last few years, this is a fast-growing industry, with an estimated value of $5.165 billion in 2015. In India this industry is still stuck on a nascent form with no real innovation having come out in this space. Many experts say 3-D printing is part of the new industrial revolution, in which parts are made to order via a 3-D printer. A recent study by the Manufacturing Institute found that 71 per cent of American manufacturers are using 3-D printing in some way, from prototypes to end products. It should only be a matter of time before we see this trend pick up locally.
Once an idea just for science fiction, Artificial Intelligence (AI) is now a real concept capturing major research dollars. AI is already being used in everyday technology — from Google’s voice recognition technology to Facebook’s DeepFace program, which can accurately identify 97 per cent of the faces it scans. One of the most popular examples of AI’s progress is IBM’s Watson, which famously won the game show “Jeopardy” in 2011. Today, Watson is 2,400 percent smarter than it was then. With substantial capital investment coming from major public companies such as Apple, Facebook and Google, AI is clearly a solid industry that has incredible growth potential.
Today, when you look up at the sky you might see some birds, or maybe a plane. But imagine a future where it’s commonplace to see drones zip by. One reason the growth potential is so huge for drones — also called unmanned aerial vehicles — is because of their expansive variety of applications. From military, agricultural and even personal use, there is a considerable demand for drones. Investing in this booming market is best done through the manufacturers of the drones and drone parts, rather than end users.
(The author is co-founder and head of trading, Zerodha)