The Investments Themes – India

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India is the fifth largest economy in the world. The country have been able to achieve growth rate of 6-7% along with china and even surpassing the big neighbor from 2014 to 2018.

India has been a consumption driven economy which contributes around 60% to GDP however the government is now moving towards making India a manufacturing hub with the target of achieving GDP of $5 Trillion by 2025.

Along with Manufacturing there is also focus on Infrastructure (Significant expenditure in next 5 years) & Agriculture (doubling of farmers income by 2022.)

However to achieve all these India also needs big large banks having the muscles to finance.

From an investors perspective , it creates an opportunity never to be heard again .


India wants to be world’s next factory for which it need the money , great infrastructure with which will come the rise in disposal income resulting in increased consumption and better price realization of agri products.

All these to some extent are related.

Manufacturing Theme

After the COVID-19 and trade war between China & United states companies all over the world want to move some part out of china.

Giving an immense opportunities to other South Asian countries like India , Vietnam , Thailand etc.

The government have been focusing on providing production linked incentive schemes for electronics manufacturing which grown with CAGR of 25% in last 4 years.

Along with electronic manufacturing there have also been increased queries by foreign buyers with the chemical companies.

This has resulted in significant upward movement in prices of stocks like DIXON Technologies (Electronic manufacturing) , Alkyl Amines (Chemical manufacturing) .


Recently , Mr. Ashok wadhwa , Group CEO of Ambit capital said that “Chemical is where pharma was perhaps in 2004-05.”

Also , Mr. Young Liu , Co Chairman, Hon Hai Precision Industry (Foxconn) said that “the country’s days as the world’s factory are done.”

Hence, there is immense opportunities out their for India with though competition from other South Asia countries.

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Infrastructure Theme

India’s Infrastructure have not been great as compared to other developing nation which has resulted in some companies not coming to India & move towards other south asian countries.

However it’s not that India have not focused on improving it’s infrastructure but actually it the policies have not provided desired results.

India since independence have been focusing on improving it’s infrastructure . There have been various policies , mega projects during different times .

However , the current government is focusing more on Infrastructure since it can help them achieve $5 Trillion economy .

The government have laid down a ” National Infrastructure Pipeline” project in which there are total 6835 projects with total outlay of $1.4 trillion.

Of these 6835 projects 1464 are in development stage.

The ” National Infrastructure Pipeline” have been divided into sub-segments viz:-

  • Transport – 3678 Opportunities – $782.31 Billion of which Majority is Roads & Bridges $374 Billion followed by Railway Track $213 Billion
  • Water & Sanitation – 1757 Opportunities – $ 291 billion of which majority is Irrigation $175 Billion followed by water treatment plant $ 103 Billion
  • Social & Infrastructure – 1061 Opportunities – $199 Billion of which majority is Affordable housing $139 Billion followed by education infrastructure $33 Billion.
  • Commercial Infrastructure – 761 Opportunities – $95 Billion of which majority is Common Infrastructure for Industrial Parks $70 billion followed by terminal markets $11 Billion.
  • Energy – 659 Opportunities – $ 393 billion of which majority is Electricity Generation (Renewable) $ 154 Billion followed by Electricity Generation (Non-Renewable) $ 129 Billion.
  • Logistics – 466 Opportunities – $43 Billion of which majority is Bulk Material Transportation Pipelines $ 37 Billion.
  • Communication – 94 Opportunities – $ 13 Billion of which majority is Telecommunication & Telecom Services $8.5 Billion.
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There have been increased focus on infrastructure companies like L&T , pipeline making companies like Finolex Industries.

Interesting Articles

  1. Infra Boom
  2. Pipes

Defense Theme

Recently this theme have seen revival after the increase in FDI limit from 49% to 74% and ban of import 101 items .

Once the order start flowing than only the potential impact could be known.

Companies like Bharat Electronics , Bharat Forge and L&T could be benefices .

Pharma Theme

After the COVID 19 , India have been called Pharmacy of the world . India is one of the largest Pharma Producing companies.

It is being said that without India vaccine for “COVID 19” can not be mass produced and hence there is opportunity available once the vaccine is available.

Moreover, there is further scope of improvements available to Indian Pharma due sentiments.

Also, India have one the worst Medical Infrastructure and most people living in rural area doesn’t have proper reach to medicines .

With the focus of Govt. now of Pharma with ” One Health ID” and ” Ayushman Bharat Pradhan Mantri Jan Arogya Yojana ” the quality pharma companies will grow.

However it is to be noted that Pharma sector is very diverse and not easy to understand hence it is important to read as much as you can before investing.

Agri Theme

Rural area have been Knight in the shining armor for India during the COVID-19 which shows the potential this sector has if managed properly.

With government Focus of Doubling Farm Income & recent amendment wherein farmers are allowed to sell their produce to anyone resulting in increase in their income and spending on chemicals , equipment etc required for agriculture .

Infrastructure related to agriculture is already their in Infra Theme .

Its is also being said that government will make purchase of bio-fertilizer mandatory with purchase of urea.

Thus, it may impact certain chemical products but with increased farmer income their may be rise in consumption of agri chemical consumption .

Also , this may have positive impact on Agri Auto companies like Bal Krishna Industries , Escorts , VST Tillers etc.


If everything goes right than there will be lot of growth in economy and also in the earnings of good quality companies.

Hence , prudent investment backed by fundamentals can results in huge returns in next 7-10 years.

The above themes are not to be invested in isolation rather with other themes since it is possible that their could be significant delay in a Theme showing results.

Read More on stock info .


Investments in Stock Market is subject to risk . Invest after through research.

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