With so many business ideas and option going on in our mind we often get confused as to which business field we shall choose to conquer upon. There are so many questions that keep coming in our mind- whether the business would be successful, what shall be the profit rate, what are the pros and cons of it, why shall we choose this business, etc., thus leading our mind to a state of dilemma. It is frequently suggested to look at the profit margins and mistakes of the existing businesses in that field to ensure that you do not repeat the same mistakes or enter a business which doesn’t turn out to be as successful as you expected it to be. There are 5 best business fields/ sectors that have been doing great since last 50 years. During the late 1970s and 1980s, when the country was undergoing various reforms, the contribution of these businesses towards the market did not decline much. These businesses fields are:
This sector is an integration of a handful of major companies involved with construction activities, medium-size companies that are specialised in niche activities, and small to medium contractors who work on the sub-contract basis and carry out work in the field. Indian construction sector has a share of around 19% in the national GDP. Its share in total gross capital formation came down from 60% in 1970-71 to 34% in 1990-91, but thereafter increased to 48% in 1993-94 and sustained at 44% in 1999-2000. The reason for this lies in the fact that there has been an increasing emphasis on involving private sector infrastructure development via public-private partnerships and mechanisms like build-operate-transfer (BOT). This sector is labour intensive and around 16% of nation’s working population depends on it for its livelihood. Moreover, it has a survival rate of around 37% thus ensuring its future market and growth.
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2. Legal Services
With a profit margin of around 15%, the sector guarantees a constant demand from giant companies as well as the average companies and people. It claims relatively low operating costs as a large sum of money goes in maintaining specialised staff instead of investing in equipment or tools. This business sector has been on the top 5 since last 50 years due to the demand and awareness for justice and equality, a need for advice on the legal aspects of tax and company law, succession and other legal matters. It requires an investigative mind and an ability to understand complex problems and thus provide an optimised solution. It includes lawyers, notaries, settlement officers who deal with the transaction of securities and title search agents in real estate.
3. Doctor Offices
With increasing concern and awareness for health care doctors- dietitian, physicians, dentists, and other health practitioners are moving up the list with a profit margin of approximately 14%. The office can range from a normal cabin to luxurious rooms. This sector constitutes a prominent share of the market and enjoys an evergreen demand for health care services like recommended physical examination, health problems, consultancy and therapy, etc. Various insurances and schemes by the government like Aam Aadmi Bima Yojana and the advances in the health care sector have increased the awareness and thus making the citizens more concern for basic health facilities, thus ensuring consistent profits for this sector.
4. Food Processing
India is the amongst the world’s largest producers of food with an estimated growth rate of 9-12%. India ranks first in production of milk and cereals and is the second largest producer of fruits and vegetables. The Indian food market comprises of various categories including ghee, butter, tea, biscuits, soft drinks, vegetables, animal products, fruits, milk, cereals, etc. Some of these items are also exported to other parts of the world, out of which marine products constitute 40%of total processed food exports. With the onset of industrialisation, this sector saw a drastic change in the technology and quality of food production. It contributes a huge amount in the share market. Due to poor post-harvesting technology major portion of it gets wasted. So, if you are thinking about investing in this sector, make sure that you have optimised techniques to ensure minimum losses.
5. Clothing and Textile
This sector is one of the oldest in Indian economy but even today it has a significant contribution of approximately 11% in the Indian exports. It is labor-intensive and consists of 2 sectors organised (spinning, apparel and garments using modern machinery and methods) and unorganised (handloom, handicrafts, sericulture operating on a small scale and using traditional methods and tools). The industry contributes around 5% to India’s gross domestic product (GDP) and approx. 14% to the overall index of industrial production (IIP). India shares 63% of global textile and garment market thus making a huge difference in the share of India in the export market.
With the changing trends and demands, there is a need for significant change in the market but these sectors will continue to observe a perennial demand.