According to Brickwork Ratings, India's consumer goods sector is expected to witness 17.3% CAGR revenue growth during the 2025-2030 period. This growth is attributed to credit growth, GST cuts, unlocking of demand from tier-II/III cities, and premiumisation trends. The healthcare services sector is also positioned for robust performance, benefiting from strong interest and debt coverage ratios, a medical tourism market estimated at $13 billion, and expansion of the Ayushman Bharat programme to senior citizens over 70 years of age. As per Brickwork Ratings, the consumer goods sector's strong revenue growth is driven by credit growth, GST cuts, increased demand from Tier-II/Tier III cities, and premiumization trends.
The report forecasts a stable economic outlook with 7.7% GDP growth in FY26, backed by robust manufacturing and services activities, with a projected growth of 6.7% in FY27. Rajeev Sharan, Head of Research at Brickwork Ratings, mentioned that inflation is expected to be around 4.6% in FY27, with geopolitical risks and El Niño being key areas to monitor. The RBI's neutral monetary stance, coupled with a cumulative 125 bps repo rate reduction to 5.25% by 2025, aims to maintain policy flexibility amidst external shocks.
Brickwork Ratings reviewed 25 sectors and assigned a stable outlook to 22 sectors, with power distribution being the sole exception. The agency expects a stable credit outlook across 22 of the 25 sectors in FY27, supported by resilient domestic demand, sustained government capital expenditure, healthy balance sheets, improving operating margins and predictable cash flows despite geopolitical uncertainties. The positive outlook is driven by tax relief measures, increasing consumer spending, and strong financial health across most sectors. Sectors like technology, automobiles, telecom, infrastructure, logistics, industrials, and power generation are set to benefit from deleveraging, policy support, export opportunities under new trade agreements, and long-term demand visibility. As per K. H. Patnaik, Chief Ratings Officer at Brickwork Ratings, while sectors such as chemicals and textiles face margin pressures, and transport and airports remain relatively leveraged, their credit profiles are supported by strong solvency, improving profitability, and stable revenue visibility.
The power distribution segment received a negative-to-stable rating due to high and unsustainable debt levels, reflecting a weak credit profile and ongoing cash gaps from muted or delayed tariff hikes. As reported by Brickwork Ratings, distribution companies (Discoms) that have identified and reduced distribution losses and improved collection efficiency will be better positioned to curb losses and meet the LPS terms. Niraj Rathi, Senior Director – Ratings at Brickwork Ratings, emphasized that power distribution companies improving distribution losses and enhancing collection efficiency will be better positioned to manage losses and meet LPS terms.
According to Bain & Company, India's medtech sector presents a $35 billion opportunity by 2030, with medical device exports expected to reach $8 billion through over 20% CAGR growth. As per Dhruv Sukhrani, Partner and head of Bain & Company's Healthcare & Life Sciences practice in India, India's healthcare demand is expected to grow to over $320 billion in the next couple of years at a 10-12% CAGR, creating strong momentum for medical technologies. India's medical device exports reached $4 billion in FY25, while imports of high-end medical devices stood at $5.5 billion, highlighting significant innovation opportunities. India, which exports medical devices to over 125 countries, has been identified as APAC's prominent access-led innovator, designing products for clinical environments where infrastructure is limited and cost is a binding constraint.
