Arun Poddar, CEO of Choice International, expects defense and infrastructure to drive growth, while warning that the IT sector may face two years of pressure. He suggests firms with international footprints have an advantage, as the IT industry works to adapt to global artificial intelligence trends.
Arun Poddar, CEO of financial services firm Choice International, has shared a bullish outlook on India’s defense and infrastructure sectors. He believes these areas, along with the consumer goods segment, are set to act as the primary growth engines for the domestic economy over the coming months.
In the infrastructure space, Poddar pointed toward companies that have successfully established operations in the Middle East and Gulf regions, citing Larsen & Toubro and NCC as examples. These firms are seen as being in a strong position to benefit from current growth trends. For investors, the strength of an infrastructure company’s order book and its ability to execute projects internationally often serve as key metrics for future success.
Meanwhile, the FMCG sector is expected to maintain steady growth, driven by an improvement in consumer purchasing power. The sector's momentum relies on the broader consumption cycle, where rising disposable income helps support stable sales performance.
However, Poddar expressed caution regarding the information technology sector. He noted that the industry might face a difficult stretch of one to two years. This outlook is linked to the global shift toward artificial intelligence-driven productivity, where traditional service models are losing ground. There is a concern that Indian providers may need time to adapt their service offerings to meet the new demands of international clients, which could pressure profit margins in the near term.
On the macroeconomic front, the outlook is balanced by potential risks. Global trade policies remain a point of interest, particularly for the pharmaceutical sector, which could be sensitive to potential tariff changes in the United States. Future growth will likely depend on how companies navigate these trade disputes and whether new trade agreements provide the necessary relief.
Investors tracking these sectors may want to watch for updates on company order books in the infrastructure space and monitor margin trends in IT firms. Management commentary during upcoming quarterly results will also provide more clarity on how companies are navigating these industry-specific challenges.