Defence, infra, FMCG to drive growth; IT may struggle: Choice’s Arun Poddar

Choice International’s CEO Arun Poddar expects defence, infrastructure and FMCG to remain key growth sectors in India, while the IT industry could face a challenging one to two years as artificial intelligence rapidly reshapes the global technology landscape.

In an exclusive interaction with Fortune India, Poddar said the broader outlook for India remains positive, although geopolitical uncertainty and shifting tariff policies could continue to influence investor sentiment and sectoral performance.

Defence, infrastructure emerge as key themes

Poddar said defence is one of the sectors where he sees “a decent story” and scope for meaningful growth.

“I feel defence is one of the sectors where we can see a decent story or decent growth in defence sector,” he said.

He also expects infrastructure to benefit from increased activity, including opportunities for Indian companies operating in the Gulf and West Asian markets.

“I feel infrastructure sector also will grow in a large scale,” Poddar said, pointing to Indian companies with operations in the Gulf, UAE and Iran-linked markets. He specifically cited L&T and NCC among companies that could see opportunities in the region.

According to Poddar, infrastructure could therefore remain at the forefront of the investment cycle as Indian companies expand their presence and seek opportunities across markets.

FMCG could benefit from stronger consumption

Poddar also identified FMCG as a sector with a potentially strong growth trajectory over the next couple of years.

“One of the, I think, smart will be certainly the FMCG,” he said, adding that an improvement in purchasing power would be important for the consumption cycle to strengthen.

“I personally feel the government, in any case the price point or the paying capacity will increase then only the cycle will improvise. So, FMCG also is one of the sectors where I feel there will be a decent growth story in next couple of years,” Poddar said.

His sector preference comes at a time when investors are navigating a combination of geopolitical uncertainty, trade restrictions and changing global supply chains.

Why Poddar is cautious on IT

Poddar was considerably less optimistic about the IT sector, saying the industry could remain under pressure for the next one to two years.

“For IT sector, I am not much positive in this segment,” he said. According to him, one of the reasons is that developed economies have moved faster in adopting and evolving AI technologies.

“We are far behind them. So, I believe the IT industry will struggle for next one or two years,” Poddar said.

He expects companies in other sectors to increasingly adapt to the changing global environment, particularly as tariffs and trade policies remain unpredictable.

“You never knthatow  after three months, what will happen,” he said, highlighting the uncertainty around global trade policy.

Poddar said the pharmaceutical sector, meanwhile, would have to adjust to additional US tariffs and look for new markets and alternative sources of growth.

India outlook remains positive

Despite the near-term uncertainty, Poddar said the underlying India investment story remains strong.

“In terms of growth story, in terms of investments, in that cycle, in terms of India growth, there is a positive sentiment everywhere,” he said.

He added that much would depend on how tariffs and free trade agreements evolve.

“It's all about how this tariff will settle down, how this FTA will work it out,” Poddar said, adding that trade agreements could prove beneficial for India and create opportunities across sectors.