10 Growing Industries Which Can Form the Pillars of AatmaNirbhar India

Some time back the honorable Prime Minister of India, Narendra Modi called upon the need for AatmaNirbhar Bharat meaning a nation that is self-reliant. On 12th May 2020, Modi mentioned his call to action for the first time while addressing the nation on the ongoing coronavirus pandemic.

“The country needs an economy that brings quantum jump, not incremental change. From today, we have to be vocal for local. Not only we have to buy local products, but also promote them”.

What are the Pillars of AatmaNirbhar Bharat

AatmaNirbhar India, the mission to make India self-reliant is based on the five pillars:

1. Economy
2. Infrastructure
3. Technology driven system
4. Vibrant demography
5. Demand

1. Economy

The first pillar of AatmaNirbhar India, our economy should see rapid growth rather than incremental changes to create a feasible environment for growing industries as well as growth of service sector.

2. Infrastructure

Modern infrastructure which forms the foundation of AatmaNirbhar India.

3. Technology Driven System

Incorporation of the latest technologies, which supplement economic growth and infrastructural development for growing industries.

4. Vibrant Demography

The fourth pillar involves tapping India’s vast natural and human resources to realise AatmaNirbhar India in the truest sense. 

5. Demand

The fifth pillar is of Demand, wherein a robust system of fulfilment of demand and supply chain is maintained for growing industries.

Self-reliant India: 10 Industries that will be crucial to AatmaNirbhar India

The first step towards initiating an environment of self-reliance was the announcement of a financial assistance package of ₹ 20 Lakh crore. But for long-term sustenance and growth of service sector, it is imperative that certain Indian industries are provided the resources and guidance to achieve high growth rates in the coming years.

These industries include MSME industry, FinTech, HealthTech, Non-banking finance companies and much more. Following is the complete list of 10 industries which hold the maximum importance for AatmaNirbhar India.

1. Organic Farming
2. Ed-Tech
3. FinTech
4. Health Technology
5. Industrial Machinery
6. Agro Chemicals
7. Transport Services
8. Gaming
9. Coveralls such as Masks and Ventilators
10. Electronics

• Organic Farming

At a glance

Organic farming has been identified as the future of sustainable farming practices that not only protect the earth but also give high quality farm produce.

India is yet to realise its true potential in the organic farming sector.

A 2018 report states that even though India accounts for 30% of organic producers in the world, it has less that 3% of the total organically cultivated area in the world. This is alarming for a country whose economy is predominantly driven by agriculture.  

Contribution to AatmaNirbhar India

Indian organic sector is mired by a variety of problems. Farmers complain that the organic farming produce levels take a lot of time to match upto chemical farming levels: sometimes even a decade. Another major issue is the cost of organic products: they are overly expensive which causes most customers to shy away from buying them. Under the AatmaNIrbhar India movement, the government aims to redress these problems.

In May this year, a task force formed by the Ministry of Agriculture suggested that 10% of India’s cultivable land should be converted to organic farmlands, an instrumental increase from the current 2.5%. The task force established that organic farming will not only save expenditure on pesticides due to less dependency on chemical farming but it will also lead to a healthier nation.  The task force further observed that organic farming promotes environment friendly agricultural practises, reduces carbon emission and is important for a self reliant India as it reduces the need for import of fertilizers.

• Ed-Tech

At a glance

The importance of expansion of the Ed-tech sector comes at the backdrop of a pandemic which has drivenstudents online for their learning needs.

Not only students, even working professionals have been committed to online platforms to enhance their skill level.

To put it another way, in the last 5- 6 years, companies providing online certification or test preparation have grabbed around 90% of the total funds invested in the ed-tech sector.

Contribution to AatmaNirbhar India

Ed-tech is gaining popularity also because of the seeming ease of access and minimum investment required to start online classrooms. You require nothing more than a phone and a working internet connection. Ed-tech is also important for growing industries as it bridges the vast skill deficiency among the employable youth.

Just recently, honorable Prime Minister Narendra Modi launched the AatmaNirbhar India app challenge where the focus is on the promotion of existing indigenous apps as well as the creation of new ones. This spirit is beneficial for new players to emerge in the Education startup India sector and develop platforms specific to the Indian community such as courses on local languages, culture, Indian art forms, etc.

• FinTech

At a glance

FinTech remains one of the fastest growing sectors of the Indian market with reports suggesting that transactional value for FinTech companies will swell to 140 billion dollars by 2023, from the current 65 billion dollars.

What is more promising about India’s financial services is that our country has the highest FinTech adoption rate of 87 percent, which is way higher than that of the world with 64 percent FinTech adoption.

Contribution to AatmaNirbhar India

Emergence of FinTech has made payment methods provided by non-banking finance companies more seamless. This has been possible due to the increased outreach technologically and the enhanced user experience.

FinTech companies successfully build on the third pillar of AatmaNirbhar India i.e. technologically driven system. In the current pandemic when cash payments are on a downfall, FinTech companies have provided a safe and efficient Indian alternative.

FinTech companies have reaped the benefits of national sentiment and provided homogeneous services. They are also using artificial intelligence, machine learning etc. to bind more customers to their platform across the country. What works in the favour of Indian FinTech organisations is the large scope of improvement regarding their app interface and security of transactions. This makes FinTech a large contributor to AatmaNirbhar India.

• Health Technology

At a glance

By 2022, it is projected that Indian healthtech sector will stand at an evaluation of ₹8.6 trillion.

Rising awareness of a healthy lifestyle across the country has also led to an increase in the number of healthtech start-ups. A 2018 report puts the number of healthtech start-ups in the country close to 5000. These have collectively raised more than 500 million USD worth revenue and are on the frontline of providing the nation access to primary healthcare services.

Contribution to AatmaNirbhar India

Having said this, it’s no doubt that Covid-19 pandemic has revealed some chunks in the armour of Indian healthtech. With the AatmaNirbhar Initiative, healthtechstartups should aim to cover these chunks by making modern day healthcare affordable and accessible to all.

Under AatmaNirbhar India mission, healthtechstartups should focus on building proper infrastructure, adequate training of healthcare professionals and timely deliverance of primary healthcare services.

• Industrial Machinery

At a glance

Growth in manufacturing sector depends on machinery employed to produce a said good. Indian industrial machinery sector has been working on the make in India model and has a huge impact on the MSME industry. This sector currently attracts heavy investments on domestic as well as international level with the total investments amounting to more than ₹28 lakh crore for the first half of 2019-2020

Contribution to AatmaNirbhar India

The reason that industrial machinery is one of the fastest growing sectors is because it builds on the fourth pillar of AatmaNirbhar Bharat: Vibrant Demography.

Indian manufacturing sector employs a large share of the young population and through this it can aim to increase its growth rate in the years to come. This coupled with indigenously developed industrial machines will ensure that India becomes self reliant and a global manufacturing power.

• Agro Chemicals

At a glance

India being an agrarian society and advent of the green revolution in the 1970s has made agriculture sector one of the largest contributors to India’s GDP. A part of this sector is Agro Chemicals in which the nation continues to obtain rich dividends. In a period from 1975-2014, it is estimated that evaluation of Agriculture sector grew from USD 25 billion to more than USD 360 billion.

The growth of Agro Chemicals was also supplemented. India currently ranks as the 4th largest producer of pesticides behind USA, Japan and China

Contribution to AatmaNirbhar India

Under the AatmaNirbhar India initiative, India can look to enhance its growing industries related to Agro Chemicals. This can be done by making use of the US-China trade war and emerging as the better option for export of AgroChemicals.

Indian agro chemical industry is privy to AatmaNirbhar India movement as development of ecologically sensitive and cost-effective chemicals is the current need of agriculture market.

By achieving this, Indian agro chemical sector can not only become the global source of crop protection chemicals but also promote sustainable farming in our country too.

Indian agro chemical sector has already taken concrete steps in this direction such as satellite mapping of fields and use of drones to spray correct dose of pesticides on the crop, etc.

• Transport Services

At a glance

Transport sector in India includes roadways, rail network, air transportation and waterways. In a 2019 estimate, the government projected that Indian transport sector would grow at a compound annual growth rate (CAGR) of around 6%.

Contribution to AatmaNirbhar India

Under the AatmaNirbhar India movement, the transport service sector is all set to include novel modes of transportation which includes electric cars and other electric vehicles. For growing industries and business under MSME, this is welcome news as they can plan to cut costs spent on fuel and maintenance of traditional modes of transport.

With one of the largest railway and air transportation networks in the world, Indian transport industry presents bright investment opportunities. Our country’s vast coastline is also a major factor why transport service is one of the prominent industries backing AatmaNirbhar India as well as growth of service sector.

• Gaming

At a glance

In this lockdown period, gaming has come to occupy a substantial part of many of our lives and has emerged as a prominent recreational activity.

The Gaming industry which has a strong presence in the US and Japanese market, is making its presence felt in the Indian subcontinent region.

So much that in India alone, the gaming industry is expected to explode and rake in revenues around ₹120 billion by 2023.

Contribution to AatmaNirbhar India

Indian E-Sports companies have started capitalising on this ever-increasing demand for secure online games. Indian Gaming industry is targeting the release of enhanced virtual reality games and cloud-based games. Fantasy cricket team building games are already popular and the next step is to create an OTT style gaming platform for Indian audiences, including games such as rummy and poker.

With a huge proportion of young population, India can look to place itself among the established proponents of the gaming industry in the coming years. This can be a huge boost to AatmaNirbhar India mission.

• Coveralls such as Masks and Ventilators

At a glance

Before the coronavirus pandemic, there was a limited production of masks and PPE kits. But a May 2020 report by the government puts the current valuation of the personal protective equipment industry in the country at ₹7000 crore, making it one of the fastest growing sectors.

Contribution to AatmaNirbhar India

Taking inspiration from the Make in India Initiative, India is currently manufacturing enough PPE kits to protect and enable its frontline health workers. The country is also targeting development of ventilators indigenously and a healthy number of them have been employed in hospitals across the country.

Recently, masks and hand sanitisers have been removed from the essential commodities list citing enough supply; allowing exports and boosting the revenue. Hence in a short period of time, this newly formed industry has become a robust pillar of AatmaNirbhar India.

• Electronics

At a glance

With the growing national resentment against Chinese goods, Indian Electronic industry has struck gold. In a recent estimate, it was projected that by 2025, India will have the 5th largest consumer electronics and appliances industry in the world. The growth of information technology has further supplemented expansion of this sector which contributes 2.5% of India’s GDP.

Contribution to AatmaNirbhar India

Schemes such as Digital India have led to a digital revolution across the country and has enabled Fintech and HealthTech industries as well. And the recent ban on Chinese apps has ensured that the Indian middle-class buyer places its trust back in India manufactured electronics.

It is projected that in the coming years, Indian electronic industry will pull in around 1 trillion USD in revenues, making it a strong pillar of AatmaNirbhar India movement.

AatmaNirbhar India: The Road Ahead

In his statement, honorable minister of Commerce, Shri Piyush Goyal mentioned that “A self reliant India will ensure production of quality products on a large scale, fulfil India’s requirements and boost export of surplus production”. He also added that “…self reliant India does not mean we are getting isolated from the world” These 10 industries mentioned above are the ones in which India can utilize its potential in the best manner to place itself as a global industrial hub. Through AatmaNirbhar India mission, we prefer our indigenous goods over others and truly go vocal for local.