India emerging economy and its status as a fast industrializing country has over the decades been made possible by a robust and thriving economy with new emerging industries and expansions in others. Emerging sectors for FDI in India include the service industry, property and real estate, medical, tourism, biotechnology, IT and home furnishing. The growth of the Indian economy has led to the emergence of new and emerging services and strengthened the existing ones. This rise and growth of the new emerging sectors has been possible thanks to the rise in consumerism and new opportunities. Indias software industry has grown over the years to become the important global market that it is today. Most of the revenue that accrues from this sector has mainly been from export of services to offshore markets giving the more developed USA software sector heavy competition.

The need for offshore backup systems necessitated by the 9/11 terror attack made most companies invest outside of their home bases. Companies such as banks, airlines, telecommunications and IT were at the forefront of these rash investments. The Indian software industry is estimated to be worth $38 billion with about $31 billion coming directly from export revenues. A major industry player in this emerging sector include NASDAQ-INFY, an Indian out sourcing IT company, floated in the US stock exchange but has no Indian clients. Rather, it is a player that is slowly growing on the global stage. Other major players are Tata and Wipro Technologies. The competition from western companies is definitely better than Indias emerging IT because its IT infrastructure is not as well developed as the Wests.

Tier II and III cities in India have a huge potential for investments in the emerging outsourcing market, IT, off shoring and Retail and Real Estate development areas. With a GDP growth expected to trail at 8% over this decade, India stands to benefit from the rapid development of these emerging economic sectors. With most companies trooping to invest in the tier one and two cities, major development is expected in these cities. The biotechnology and Tourism sectors have performed quite impressively with medical tourism racking in considerable revenue in the tourism sector. The Indian government has taken a proactive approach to investment promotion in the emerging markets economy for uniform development of the country by decongesting tier one cities. Economic prospects however look great for the emerging sectors with impressive figures having been posted in the first quarter this year.