Due to a global pandemic and the subsequent lockdowns, the last year proved to be of great financial stress for both the individual (producers, consumers and firms) and the economy at large. As we approach a new financial year, the key question for the investors, job seekers and students enrolled in higher education is; which are the booming sectors in the economy, so that they can invest their time, money and efforts into the same. This knowledge is even more important as the pandemic has had a significant impact on our entire existence; the way we shop, the way we work, the way we learn and so on. It has altered the consumer behavior drastically, demanding firms to readjust their overall strategies to keep up with the times.
The only predictable thing about the upcoming financial year is that it is going to be unpredictable. On one hand people are getting vaccinated, and on the other COVID 19 cases showed a huge spike in the second half of March, enforcing curfew and lockdown situations in some cities. While no one can be certain about the future consequences of the spread of coronavirus, the thing that is certain is that the businesses would need to be innovative and dynamic in order to shine through in these uncertain times.
Let us look at the top 7 sectors which are promising to show growth in the upcoming financial year.
1. Pharmacy and Healthcare:
A sector which had shown reluctant growth over the four years preceding the 2020, turned out to be the winner in the pandemic year. The Pharma sector rose above the high pressure imposed upon it during the pandemic. With the increasing demand for health care professionals, medicines, supplements, cosmetics and all forms of health and hygiene products, this sector is expected to grow rapidly not only in this year, but perhaps for a few years to come.
“Businesses going online” was the most significant market trend in the decade of 2010s, but the global pandemic enforced even those businesses who were reluctant to go digital to set up their businesses online. The global online sales for 2020 were $4.28 trillion, growing at 27% from the previous year. The pandemic had a great impact on this significant amount, with a large number of people preferring the online mode to purchase essentials such as groceries, clothing and medicines instead of going into overcrowded stores and malls. Several estimates point in the direction of the online market expanding rapidly in the years to come. By 2023, it is estimated that one in every five transactions would be online.
3. Digital Marketing and Social Media Management
As more and more businesses compete online, there would be a great demand for professional digital marketing and social media managers to come up with creative ways to attract traffic on their websites and social media platforms. Graphic designers, content writers, social media influencers are going to be in a great demand.
4. IT Sector
The IT sector has been growing steadily over the last two decades, but with the rising use of smartphones, higher internet speed, more and more businesses going online and the general reliance on online apps, point out that the best times for the IT sector is yet to come. From shopping to dating, from learning to gaming, from booking a cab to ordering food, online apps have become a huge part of our lifestyles. It is only going to grow as we witness more digitalization and a general acceptance for these apps among the people. Web developers, software and hardware engineers, App developers would continue to be in good demand. Higher technologies like artificial intelligence and augmented reality are a very near future.
5. Renewable Energy
COVID 19 pandemic has made us kinder towards the environment, something which we should have been anyway. Increasing fuel prices, shortage of water and mineral resources have made the switch towards renewable sources like solar and wind not only desirable but necessary. The Central Estimate Authority (CEA) has estimated that over the next decade, the share of renewable resources would increase to 44% from 18% which is at today.
6. Automobile Industry
Automobile industry experienced a substantial decline in its growth in the last couple of years due to shrinking of the economy, increased fuel prices and changes in ownership patterns brought in with cab service providers like Ola and Uber. The sector is determined to redeem itself and especially with the government’s vision to make India an electric vehicle hub by 2030, the automobile sector can provide plenty of employment opportunities in the years to come.
7. Online Gaming and OTT Platforms
With people compelled to stay at home, online gaming and OTT platforms saw a great spike in the last year. Online gaming industry has seen rapid popularity in the recent years. The growing popularity of fantasy based apps such as Dream11, My11Circle and so on has even widened the scope. OTT platforms have been revolutionary to the entertainment industry. As the theatres remain closed due to the pandemic, the OTT platforms like Netflix, Amazon Prime, ALT Balaji, Sony LIV etc. kept us entertained. The unorthodox and diverse range of subjects that is at display in the OTT platforms are key to their popularity.
The views expressed in this post are based on the current market dynamics. It is merely for educational purposes, and is not a professional investment or career advice.