Smallcase platform managers highlight auto, consumption, defense, and clean energy among sectors expected to benefit from India's festive economy, backed by consumption data and policy support.
29 Sep 2025 | 1562 Views | By Angitha Suresh
Investment managers on the smallcase platform have identified nine sectors expected to benefit from India's festive season, citing consumption patterns, policy reforms, and structural growth factors.
The sectors span auto components, fast-moving consumer goods, gold, non-banking financial companies, pharmaceuticals, renewable energy, capital markets, infrastructure, and defense.
The projections ...
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Investment managers on the smallcase platform have identified nine sectors expected to benefit from India's festive season, citing consumption patterns, policy reforms, and structural growth factors.
The sectors span auto components, fast-moving consumer goods, gold, non-banking financial companies, pharmaceuticals, renewable energy, capital markets, infrastructure, and defense.
The projections come as India's festive economy shows expansion. E-commerce sales are forecast at ₹1.2 lakh crore, representing a 27 percent increase from the previous year. Unified Payments Interface transactions crossed 20 billion in August, while festive credit demand from micro, small, and medium enterprises is expected to rise 35 to 40 percent to ₹3.45 lakh crore.
Wright Research, an investment manager on the platform, noted that auto components could see increased demand as retail sales grew 2.84 percent year-on-year in August 2025.
The firm pointed to passenger vehicle inventories at 56 days and the ₹25,938 crore Production Linked Incentive scheme for the auto sector as factors supporting the outlook.
In the consumption segment, managers cited consumer price inflation at 1.69 percent and a 13.9 percent FMCG value growth in the second quarter of 2025. Rural FMCG consumption is projected to grow at 14.6 percent compound annual growth rate, reaching $220 billion by year-end. Overall FMCG sales are estimated between $211 billion and $245 billion in 2025.
The pharmaceutical sector is projected to grow at 12 to 14 percent annually through fiscal year 2028, with the domestic formulations market expected to reach $65 billion by fiscal 2026. Pharma exports, which supply 40 percent of global generic demand, are forecast at $35 billion by fiscal 2026.
India's renewable energy capacity additions showed 31 percent growth in 2025, with the country targeting 500 gigawatts of renewable capacity by 2030. Electric vehicle penetration in two-wheelers is expected to reach 25 percent by fiscal 2030.
The capital markets segment has seen retail participation reach 155 million demat accounts, more than double the 2020 levels. Mutual fund systematic investment plan flows average ₹21,000 to ₹22,000 crore per month.
Defense production reached ₹1.50 lakh crore in fiscal 2025, with exports at ₹23,622 crore. The Ministry of Defence has set a target of ₹50,000 crore in defense exports by 2029.
Smallcase operates India's model portfolios platform and has served over 10 million investors. The platform's technology is used by more than 250 financial institutions.