Green Watts and Brick Bonds: India’s Twin Engines of Wealth Set to Roar Through 2032

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News Digest: The future wave of prosperity generation in India will be led by two industry behemoths—housing finance and renewable energy. These sectors are likely to give disproportionate returns in the next seven years because of rising demand, policy support, and excellent execution by industry champions, according to market analyst Deven Choksey.

Growth Drivers:

Renewables and housing finance are emerging as high-conviction themes

Both sectors are driven by persistent structural demand and government support

Targeted company execution will be anticipated to unlock significant value for shareholders

Industry Focus: Renewable Energy

Demand Surge:

India's drive for energy independence and climate objectives is driving renewable uptake.

Solar, wind, and green hydrogen projects are expanding in scale across states

Policy Momentum:

Government schemes like PLI for solar panels and green energy corridors are creating investor confidence

Regulatory certainty and carbon markets are turning the industry green

Corporate Play:

Energy giants and top conglomerates are piling up their green books

Storage innovation, grid integration, and AI-based energy management are increasing

Sector Concentration: Housing Finance

Urbanization Wave:

Tier II and Tier III cities are experiencing a surge in housing demand due to migration and infrastructure growth

Affordable housing is a priority in PMAY as well as in state-level effort

Financial Inclusion:

HFCs and NBFCs are expanding credit to the first-time homebuyers

Advances in credit scoring and e-lending technologies are reducing entry barriers

Investor Confidence:

Housing finance shares are exhibiting strength and long-term growth potential

Interest rate stability and increasing disposable incomes are underpinning loan uptick

Strategic Outlook:

Investors are urged to overlook short-term prices and look at fundamentals

Companies with strong balance sheets, history of execution, and ESG alignment will tend to outperform

The next seven years could see 5x to 7x returns on some of these bets in these areas.

Sources: The Economic Times, EY India, MSN News, IJFANS Journal, DRChoksey FinServ