The dawn

Sunrise signifies a new beginning, the dawn of a new day or year. Just the same way a new industry or sector shines bright in any economy.
Sunrise sectors are those sectors or industries that are relatively new in the economy yet show rapid growth and development in short time and become an important part of the economy.

Characteristics of sunrise sectors

• Increased demand and high growth: the demand for any product or service will determine its rapid growth. Industries like IT begin in India and become global players.
• Start-up boom:  typically, numerous start-ups mushroom around these sectors. The most glaring example is the Information Technology Sector simply referred to as “ IT” industry. In fact, in 2023, it is estimated that the government officially registered 1,00,000 start-ups. 
• Funding: sectors with potential, attract increased funding – from venture capital, angel investing to foreign direct investments.
• Employment opportunities: the demand and start up automatically open avenues for employment of human resources skilled in that sector.
• Peak in growth: in some sectors the rapid boom and growth is followed by a saturation stage after which they decline and eventually become redundant. This concept is also called ‘Sunset’. For instance, in the 90’s cassettes and tapes were replaced by the compact disc – the CD industry showed a rapid boom only to gradually be replaced by digital media in the last two decades.

In 2023….

An indicative list of sunrise sectors which will contribute to our economy for in the year(s) to come:

LIFESCIENCES
This sector includes a wide range of industries – from pharmaceuticals, biotechnology, medicines, medical devices, diagnostics, nutraceuticals, cosmetics and related services including research & development that are focused on the betterment and longevity of human  lives and organisms. Even genomics – the study of genetics is the next big sector of life sciences as the study of genome structure of human being will eventually provide customized health care solutions to people.

FOOD PROCESSING
Simply put, food processing is the process of converting raw agricultural products into usable forms of food – such a flour, ready to eat food etc. 2023 was declared as the ‘year of the millet’. Several food expos were conducted by the government to showcase Indian food / food products to the rest of the world. In a country with availability of diverse food, food processing industry is poised to be the next big sector that will put Indian food and economy on the global map.

RENEWABLE ENERGY / SUSTAINABLE SOLUTIONS
Consisting of an array of resources including solar energy, wind energy, hydro electric energy and bioenergy, renewable energy sector has begun attracting heavy investments. With climate change becoming a global reality, there is world of opportunity for sustainable living solutions and use of clean energy.
In particular, the use Electric vehicles (EVs) manufacturing sector is touted to one of the most significant industries contributing to the economy in the ensuing years. It is estimated that the EV market will  be valued at $ 30 billion over the next few years. 

CLIMATE CHANGE / CLIMATE TECH
Climate change is an alarming reality caused by humans. Humans will bear the consequences as well. Several forms of alternate clean energy are being tapped to mitigate the irreversible effects of climate change. Green Hydrogen is one such form of clean energy. It is produced using a process of electrolysis of water with renewable sources of electricity. By reducing the carbon component, such hydrogen will eventually leave minimal carbo footprint on the earth. With India aiming to be energy independent nation over the next two decades, green hydrogen sector will play a critical role in balancing the environment and the economy.
Similarly, Climate Technology or ‘climate tech’ is technology developed to identify and address issues relating to climate change such as drought resistant crops, early natural disaster warning systems etc. The primary objective of such technology is to minimise the use of green house gases and leverage alternative clean sources of energy. Bloomberg reported that investment in climate tech-based companies were USD 45 billion since 2022. The numbers are growing.

SPACE
With India reaching the moon, the space programs of the country have picked up pace. India adopted the space policy in 2023. The private participation in equity as well as R&D was allowed since 2020. This has witnessed burgeoning of space start-ups across the country.
Yet another niche and unique sector is Space tourism – the practice of travelling to outer space for recreational / tourist and adventurous purposes. With more than USD 200 million invested in space travel companies worldwide, India is expected to follow suit.

ONLINE GAMING
Online gaming flourished globally during the pandemic. The number of people taking to recreational gaming has exponentially increased since. It is estimated that there are more than 3 billion gamers as of 2023. Revenues from online gaming are estimated to cross USD 5 billion  in the next few years.

ARTIFICIAL INTELLIGENCE (AI)
Despite the threat to humankind, AI remains an industry /sector of importance. In broad terms, AI is the process of automating human processes using software, deep machine learning and other software. The year 2023 saw an unprecedented wave of investment in AI companies.  Generative AI, Language replication, speech recognition modules using AI attracted the maximum investment. The industry itself is expected to attract more than USD 200 billion over the next few years.

Rise and shine

India remains a favourite investment destination for investors. In the fiscal budget of 2023, the finance minister identified certain sunrise sectors such a tourism, energy, millet foods etc. The year 2024 contains an entire new gamut of industries / sectors. As Robert Browning famously said “ My sun sets to rise again”. Time for new sunrise.