ETMarkets Smart Talk: India’s consumption boom - key sectors to watch, according to Harshad Patil

“India's consumption has been a robust long-term story. As economic development accelerates and the middle class grows, the potential for further expansion in the consumer market is set to increase significantly,” says Harshad Patil, CIO, Tata AIA.

In an interview with ETMarkets, Patil said: “We see strong potential in some sectors such as Retail, Quick Commerce, Healthcare, FinTech ,Travel and Hospitality, Consumer Durables and Automobiles,” Edited excerpts:

Thanks for taking the time out. After a nearly 6% drop in February 2025, volatility continues in March. What is weighing on markets?
In the month of March, Indian equities have been under pressure due to tariff concerns. The recent announcement of new tariffs by the U.S. President, including a 25% levy on select imports from Mexico and Canada, has led to a surge in market volatility across the globe.

India has been labelled as one of the highest tariff nations by the U.S. President, and there is speculation that the U.S. will announce reciprocal tariffs on Indian goods as early as April 2nd.

Amid these trade tensions, the weakening Indian Rupee and retreating foreign investment have heightened overall domestic market volatility.

FIIs have been net sellers of Indian equities to the tune of around $5.4 billion in the month of February, following around $8.4 billion in sales in January 2025, even as the Indian equity markets continued to see strong domestic inflows.

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You have so many market cycles in the past. Is this one different or investors