Sunrise industry

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.
• 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 Industry:

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.

• This was a sunrise industry in the 1990s when compact disks replaced vinyl records and cassette tapes.
• Still, the increasing proliferation of 21st century digital, non-physical media may mean that the days of the compact-disk industry are numbered. 
• In competitive sectors like telecommunications, the transition from the sunrise to the sunset stages is likely to be more rapid.
• Despite the attention they draw at the outset, the sunrise industries still need to prove to be competitive, sustainable markets. 
• The excitement they create at the beginning could be focused primarily on speculation of the possibilities offered by the market, rather than any particular business activity.

UPSC Prelims 2022 Detailed Answer Key

Examples:

• Examples of sunrise industries include the 2003-2007 alternative energy sector, and the 2011-2012 social media and cloud computing industries.
• 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.

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
• Online Encyclopaedias

Scope of food processing industry in India:

• As per an estimate, India’s current food processing industry is estimated at USD 130 Billion and expected to attract huge domestic and foreign investment. Some of the key factors which are likely to increase the demand for processed food and consequently the food processing industry in the coming years are –
• India is a country of over 1.25 billion population. With rising middle class having a considerable disposable income, the domestic market offers 1.25 billion opportunities for the sector.
• India ranks no 1 in the world in the production of milk, ghee, ginger, bananas, guavas, papayas and mangoes. Further, India ranks no 2 in the world in the production of rice, wheat and several other vegetables & fruits. If the surplus production of cereals, fruits, vegetables, milk, fish, meat and poultry, etc are processed and marketed both inside and outside the country, there will be greater opportunities for the growth of the sector.
• Due to rapid urbanization, food habits are changing rapidly towards value-added foods. The change is accentuated by the fact that over 65% of India’s population is 35 or under, who are inclined to have processed food.
• Next to China, India is among the fastest growing economies in the world. The recent quantum jump in the ease of doing business ranking of the World Bank (from 130 to 100) indicates the conducive business climate in the country and expected to attract foreign investment into this sector.
• As per an estimate, around 40 percent of total food production is wasted due to the inadequate facilities for transportation, storage, processing and marketing. If these deficiencies are addressed, there is a huge scope for the development of the sector.

Government  Innitiatives:

• Mega Food Parks Scheme
• Modernisation of Abattoirs scheme
• Pradhan Mantri Kisan Sampada Yojana (PMKSY)
• Make In India