SUNRISE SECTOR - ECONOMY

News: India’s food processing industry a ‘sunrise sector’ with ₹50,000 crore FDI, says PM Modi

 

What's in the news?

       Prime Minister Narendra Modi said that the food processing industry has emerged as the “sunrise sector” in India and has attracted FDI investments of about Rs 50,000 crore in the past nine years.

 

Key takeaways:

       He emphasised that India’s food diversity is a dividend for global investors.

       He also urged industry stakeholders to focus on finding solutions for the reduction in post-harvest losses and the usage of better technology for packaging besides promoting a sustainable lifestyle.

 

Sunrise Industries:

       Sunrise industry is an inherent concept that shows hope of a rapid boom for a developing sector or market in its infancy stage.

       Typically, the sunrise industries are characterized by high growth rates, numerous start-ups, and a wealth of venture capital funding.

       Such industries create a lot of “buzz” as investors take an interest in their long-term growth prospects and raise public awareness.

 

Key Features:

       A sunrise industry is a new business or business sector showing potential for substantial and rapid growth.

       Notable characteristics of sunrise industries include high-growth rates and a lot of start-ups and venture capital funding.

       A sunrise industry is often characterized by a high degree of innovation, and its rapid emergence may threaten to push a competing industry sector into obsolescence which is already declining.

       The dynamic business market is referred to as a sunset business, owing to its poor long-term prospects.

       As a sunrise industry develops, it may transition to the maturity stage and then to the sunset stage.

       To remain relevant and on an upward trajectory, sunrise industries must prove their viability and sustainability.

 

Sunrise and Sunset Stage:

       When an industry expands and matures over years or decades, it will transition from the sunrise period to maturity, and eventually, the sunset stage.

       A common example of such a transition is the compact-disks industry.

       The following are the few examples of the sunrise industry:

       IT industry of California and Bangalore

       Hydrogen fuel production

       Petrochemical industry

       Food processing industry

       Space tourism

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