INDIA EMERGING SECTORS TO DRIVE CAPEX , CREDIT DEMAND TOWARDS STORAGE , SEMICONDUCTORS : REPORT

What happened: A Union Bank of India research report says financing demand in India's emerging sectors is expected to shift toward battery storage, semiconductor packaging, green hydrogen projects with assured buyers and defence suppliers over the next three to five years. Key Why it matters: The report sees opportunities for banks but cautions that technology obsolescence, uncertain revenues, delayed payments and long payback periods remain significant risks for lenders. It recommends specialised lending capabilities and products such as milestone-linked disbursements and green loans.

A Union Bank of India research report says financing demand in India's emerging sectors is expected to shift toward battery storage, semiconductor packaging, green hydrogen projects with assured buyers and defence suppliers over the next three to five years. Key

The report sees opportunities for banks but cautions that technology obsolescence, uncertain revenues, delayed payments and long payback periods remain significant risks for lenders. It recommends specialised lending capabilities and products such as milestone-linked disbursements and green loans.