2020 was a year no segment or industry in the global economy anticipated. When the pandemic broke out early this year, it quickly led to many lockdowns and restrictions, which, in turn, impacted many industries adversely. Travel and tourism, for instance, took a heavy hit with countries closing off their borders for international travel. Travel within the country was also restricted in many areas of the world for the most part of the year.
But now, with 2021 fast approaching, it’s heartening to note that many industries are starting to show remarkable signs of recovery. In fact, experts predict that in the coming year, there are some industries that are expected to perform well and so, present many opportunities for people looking to start a business in 2o21.
If you count yourself among this lot, then you’ll no doubt want to know what these segments are. That way, you can chart out your business plan early on and apply for a business loan, an SME loan or an MSME loan – depending on the category your business belongs to. Before you go ahead and apply for a business loan, you also need to check the business loan eligibility criteria and the business loan interest rates, so you have all the necessary information at hand.
And if you’re eager to get started, here are the top industries to look out for in 2021.
According to Fitch Ratings, India’s IT sector is likely to deliver higher returns and revenue growth in the 2021-2022 period. This stems from the fact that the pandemic has resulted in an increasing demand for digital transformation across business verticals and industries. With everybody from the average consumer to small businesses and big players rushing in to adopt digital solutions to overcome the restrictions that marked 2020, IT is no doubt going to be big in the coming year.
You too can cash in on this development by kickstarting a business that offers digital solutions to different user groups. To fund your idea, you can always approach banks and financial institutions and apply for a business loan.
Fast moving consumer goods (FMCG)
FMCG, being one of the most defensive sectors in the economy, will no doubt perform well in 2021 as well. To put it simply, irrespective of the state of the economy, the demand for products like personal care items, laundry and cleaning products, and other fast-moving consumer goods will continue to exist at relatively stable levels. This makes the FMCG industry one of the safest industries to be a part of, particularly if you’re considering venturing into business.
You can always set up your own business dealing in these products, and if you have the backing of an SME loan or an MSME loan, it becomes easier to start your own venture.
2020 was marked by many defining trends. Among these, the concept of studying from home was one of the most pronounced developments. With schools have been closed for most of the year, students and teachers across the country made the switch to digital media for keeping their academic goals on trach. Education technology (or ed-tech) played a pivotal role in facilitating this transition. 2021 is likely to be a big year for ed-tech ventures in India.
A study conducted by KPMG revealed that the estimated market size for the ed-tech industry is estimated to be $463 million in 2021. If ever there was a right time to latch on to this industry, it’s now. You can make the process easier with external funding, if you meet the business loan eligibility criteria set by lenders like banks and NBFCs.
Fast food restaurants (QSR)
The fast food industry in the country may have faced a temporary lull due to the lockdowns and restrictions. But during the latter half of 2020, the quick service restaurant (QSR) market has bounced back, and how. This growth is likely to sustain itself in the coming year too, as a recent report revealed that the QSR industry may be expected to grow at 20% a year, reaching Rs. 51,000 crore ($8 billion) by 2021.
You can benefit from this projected growth by starting your own fast-food restaurant or by setting up a franchise for any established fast-food chain.
Whichever industry you choose to start your business venture in, it’s important to plan your finances and funding prudently. Make sure you compare the loan options available, so you can get the best business loan interest rates to begin with. And of course, ensure that you repay your dues promptly, so you don’t suffer any penalties.