Sectors In Which India Will be Among The Largest In The World

To plan a long term portfolio, the starting point is to get the Sectors right. At least, this is what the experts have always adviced. Having done that, we are told we must look at companies in that sector who have large profit pools to address, who have the capability to address it competently and competitively and finally has integrity towards shareholders. So I want to focus on the sector part in this thread.

Two sectors where India will attain global dominance in terms of size an value will be banking and pharma. Various estimates put these two sectors as the third largest in the world in the next seven years or so.

Which other sectors are you aware of where India can grow into a globally dominant position ? Any reports in this regard would be very useful

 

You can look at Textiles - Welspun, Page, Kitex are some good stocks. Another is Construction/Building Material/Real Estate. Real estate is beaten down to the core at the moment and you can catch some good bargains. With Modi's smart cities at play - construction/material should do well in long term - Cera, Kajaria, Sintex, Wabag are some of the stocks to look at.

 

If you are talking about sectors in which India will be good at in the future, then it has to be manufacturing and services. Pharma comes first to my mind. Then automobiles and auto ancillaries. Indian companies are expanding to Latin America, Europe, Africa etc. some of which are the countries where growth is going to be in a few years. India itself is going to be a huge market for pharma (health sector) and consumer discretionary. Look at Pharma, autos and ancillaries and then good financial stocks (I prefer HFCs and Industrial finance companies). I would suggest staying away from real estate companies just because of the upcoming regulations and shady promoters. HFCs and supply companies to the smart cities like Sanitary, Cement, Tyre companies etc. seems good.