July 2014
|
I
NDIA
B
RIEFING
-
5
Evaluating the Market: Key Sectors
108
US$
Billion
Information &
Communications
Technology (ICT)
13.1%
CAGR
FY08-13
151.8
US$
Billion
Agriculture
3.3%
CAGR
FY07-12
6.4
US$
Billion
Construction
Equipment
24.1%
CAGR
FY11-15
7.3
US$
Billion
Consumer
Durables
14.8%
CAGR
FY03-12
64.1
US$
Billion
Telecommunications
10.4%
CAGR
FY06-13
4.3
US$
Billion
Biotechnology
22.2%
CAGR
FY06-13
18
US$
Billion
Pharmaceuticals
13%
CAGR
FY09-13
India’s market for pharmaceuti-
cals has grown around 15
percent annually for the past
ve years—a trend that is
projected to continue through
2020. While low-priced,
domestically produced products
currently control a 60 to 70
percent market share, the US$18
billion industry is experiencing a
growing demand for high-
quality, internationally produced
products.
With nearly 75 percent of Indian
medical devices imported from
overseas, India’s market for
medical devices ranks among
the largest in the world and is
expected to grow 16 percent
this year. Medical devices
imported and marketed in India
must meet India’s device
classi cation standards and are
usually subject to a 10 percent
import duty.
Information and Communications
Technology (ICT) is among the fastest
growing sectors in India and was a top
performing sector last year. By most
estimates, India’s ICT sector is projected
to reach US$200 billion by 2020.
Demand in the ICT sector is greatest for
IT services (US$56 billion), business
processing management (US$21
billion), and software products and
engineering services (US$17.9 billion).
Currently, FDI in India’s telecommuni-
cations services sector is capped at 74
percent with government approval
and 49 percent without.
Key Industries
72
US$
Billion
Automobiles
13%
CAGR
FY05-13
78.6
US$
Billion
Medical Devices &
Healthcare
15.1%
CAGR
FY11-17, projected
CAGR = Compound Annual Growth Rate
