Siddharth Mehta of Bay Capital speaks about the growth opportunities available in India

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Major sectors to look forward

• Siddharth Mehta

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What are the major sectors to look out for
multi-decadal opportunities?
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Founder CIO of Bay Capital Siddharth Mehta
says, Opportunities available from four broad
themes include digitalization, financialization,
specialized outsourcing, and, at the core of it
all, consumption. These are multi-decadal
opportunities, and it is our conviction that very
high-quality companies addressing these themes
will be able to deliver long-term compounding
returns. The Asian Development Bank predicts
that the Indian economy will expand by 8 in
FY2023, supported by rising public infrastructure
expenditure and a rise in private sector
investment. Investors are willing to allocate a
higher portion of their savings to capital
instruments in 2022 as a consequence of the
success of their investments in the final fiscal
year of 2021. They are also inspired to invest in
India's expanding industries.
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As Siddharth Mehta of Bay capital addressed that
he is looking forward to Indias digital economy
boom and is ready to invest in it for a long-term
return. He also suggests new entrepreneurs keep
an eye on the Indian economy and take a deep dive
into it for better opportunities and rerun on
investment. Numerous experts speculate that by
the end of the fiscal year 2022, the Indian Stock
Market will also have progressed and expanded to
being the fifth largest in the world, in account
of the highest market capitalization.
Undoubtedly, the market will expand, with various
stepping elements such as government initiatives,
foreign relations, market dynamics, and so on
supporting this expansion.
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According to Finance Minister Nirmala Sitharaman,
India's digital economy is predicted to increase
exponentially to 800 billion by 2030 as a result
of rising internet penetration and rising
affluence (2022). Talking about digitalization,
with a median age in the 20s, a young population,
rising broadband and internet penetration,
exponential data absorption, and, most crucially,
the government's emphasis on digitalization,
India is quickly moving toward a digital
revolution. In fact, it wouldn't be out of place
to suggest that a transition is well and fully
underway in some industries, such as fintech, as
the Unified Payments Interface (UPI) processes
payments totaling more than 1 trillion.
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Through altering the structure and operation of
financial markets, as well as having an influence
on business conduct and economic policy,
financialization has an impact on both the
macroeconomy and the microeconomy. Additionally,
financialization has led to a greater rise in
incomes in the financial industry than in other
economic sectors. Securitization, a phenomenon
brought on by financialization in recent years,
has seen a significant rise in the quantity and
variety of financial products traded. A business
practice known as outsourcing is hiring a third
party to carry out duties, manage operations, or
offer services on the company's behalf. This type
of business has a chance to boom in the next 2 to
3 years and stay in the business for many decades.
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For long-term investments, it makes sense for a
wise investor to put money into India's expanding
industries. However, there is a key lesson to be
drawn from this not every expanding industry
will offer fantastic profits. Diversification is
the greatest strategy for choosing the finest
investing industries in India. Spend money on
several industries you think will expand,
decreasing risk and making sure you don't miss
out on any flourishing industries.