2013 Overview: Business Sectors in India

India's voyage on the trail of economic improvement has renovated it to one of the world's fastest growing economies. With opportunities comes challenges and India has come through a long way overcoming these challenges. As we approach the New Year and look forward to novel opportunities, let us take a quick review of the developments Indian economy progressed in the year 2012.

1. Retail

The retail sector in India is mounting at an exceptional velocity. According to the Global Retail Development Index 2012, India lines fifth amid the top 30 promising markets for retail, few among them are UAE, Russia, Indonesia and Saudi Arabia. The leverage by the Indian government with Foreign Direct Investment (FDI) in retail, particularly allowing 100 per cent FDI in single brands and multi-brand FDI has shaped optimistic attitude in the retail sector. From April 2000 till September 2012 the FDI inflows stood at U.S. $ 42.70 million according to Department of Industrial Policy and Promotion (DIPP).

2. Infrastructure

India's infrastructure development has been exponential over the years. The Union Ministry of Commerce and Industry released data that the infrastructure industry combined of, petroleum refinery products, coal, electricity, cement, steel, fertilizers and natural gas etc cover around 37.90 percent of the Index of Industrial Production.

The Planning Commission has proposed that investment in infrastructure would almost twice at U.S. $ 1,025 billion in the Twelfth Five Year Plan (2012-17), compared to U.S.$ 514 billion in the Eleventh Plan out of which 50 percent of the investment is expected to come from private sector. Goldman Sachs, the investment banking company said that India's infrastructure industry will require U.S. $ 1.7 trillion investment in the next 10-years. This year the government also approved licensing of land for Public Private Partnership, PPP projects at 12 major ports of India.

3. Agriculture

India's agricultural growth for the 2012 was quiet progressive. According to the National Council of Applied Economic Research (NCAER), the Gross Domestic Product rise in agriculture is forecast at 3 percent for the next year. India's food grain production is projected to grow by 0.6 percent to 247.6 million tonnes in 2012-13 as against 246.2 million tonnes in 2011-12.

A modest growth in output of rice and wheat along with a recovery in production of coarse grains and pulses will be responsible for the overall growth, Centre for Monitoring Indian Economy (CMIE) said, reports PTI. The rice production is projected to exceed 100 million tonnes in 2012-13, while wheat production is pegged at 87.3 million tonnes. The production of coarse grains is projected to rise by 0.7 percent to 42.3 million tonnes in 2012-13. As the meteorological department has predicted a normal monsoon in 2012, the overall agriculture sector did well, but the major crop production is projected to decline by 0.6 percent in 2012-13 due to lower output of cotton and sugarcane production. However, major oilseeds production is expected to grow by three percent in 2012-13. Higher production of groundnuts, safflower and sunflower seeds is expected to drive the growth.

4. Power

The Power & Energy Infrastructure sector in India is hovering for a foremost lift-off. The APDRP, Accelerated Power Development & Reforms Programme 2002 – 2012, has witnessed an adding up of around 22,000 MW throughout last five years. And capacities add up of over 78,000 MW was setup by 2012. Though the country faced a massive power cut for two consecutive days which included 19 cities along with Delhi but it is not expected any more.

The 14th International Exhibition and Conference, Power India 2012 highlighted that the market potential to uphold the GDP growth rate of India @ 8 percent plus per annum requirements the power sector to grow at 1.8 - 2 times the GDP rate of growth as espoused by economists, planners and industry experts. This would signify a YOY capacity totalling of 18,000 - 20,000 MW to attain this determined plan of moving India to a Developed Economy status, as an Economic Global Powerhouse.

5. Information Technology

The IT division has been India's sunbeams sector for quite a time now. The industry has contributed significantly to altering India's picture from a sluggish developing economy to a worldwide player in providing world class technology results. According to the IBEF (India Brand Equity Foundation) figures, the Indian IT industry is set to touch $225 billion by 2020.

Year 2012 witnessed a massive growth of 7.5 percent in the IT sector which was mere 1.2 percent in 1998. According to NASSCOM, the IT–BPO sector in India aggregated revenues of US$100 billion in FY2012, whereas export and domestic revenue summed up at U.S. $69.1 billion and U.S $31.7 billion. The Information Technology industry’s share increased to 25 percent of the total Indian Exports in the year 2012. The Information Technology sector is also a huge provider of employment in the Indian economy and around 230,000 jobs were provided in the Financial Year 2012.