India right now is one of the fastest growing economies, holding the 5th position in terms of the biggest economies in the world. Reports by the Asian Development Bank tell us that the Indian economy is bound to grow by at least 8 percent in the next few years. In this article, we will be exploring the top 5 growing industries and sectors in India.
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Overview:-
| Rank | Industry | Description | Key Drivers | Examples |
|---|---|---|---|---|
| 1 | Healthcare and Insurance Sector | High demand due to large population, government initiatives like Ayushman Bharat scheme | Growing population, increasing focus on healthcare, government support | |
| 2 | Renewable Energy Sector | Need to meet clean energy targets, government subsidies | International agreements, environmental concerns, government support | Reliance Industries, NTPC, Adani Green Energy |
| 3 | IT Sector | Established talent pool, focus on new technologies | Skilled workforce, adoption of AI and cloud computing, government initiatives like Digital India | Infosys, HCL Technologies, Wipro, Tata Consultancy Services |
| 4 | Real Estate Sector | Growing urban population, government reforms | Affordable housing initiatives, infrastructure development | Oberoi Realty, Indiabulls Real Estate |
| 5 | Automobile Sector | Large domestic market, increasing urbanization | Growing middle class, government incentives for electric vehicles | Maruti Suzuki India Ltd, Munjal Showa Ltd, Jamna Auto Industries, Motherson Sumi Systems Ltd |
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1. Healthcare and Insurance Sector:
Our country has the highest population in the world, and it only seems to be growing each day. Healthcare and insurance is something required by everyone, ultimately making it a very profitable industry. Especially after the Coronavirus pandemic, people have started giving a lot of importance to healthcare and other related facilities. The Indian Government, taking note of the same, launched the Ayushman Bharat scheme. This scheme intends to provide health insurance to over 100 million people. Not only that but the overall budget for the healthcare sector was also increased to gather investors and to improve the quality of healthcare services. More and more people are starting business ventures in this field due to its massive potential. India’s future in the healthcare industry has started to look very promising. The market will undoubtedly expand since the large population will also have high demand.
2. Renewable Energy Sector:
India has to meet many renewable energy requirements by the year 2030 due to many international protocols like the Paris Agreement and the Kyoto Protocol. And to meet these requirements, there is a dire need to invest in and expand the renewable energy sector. In recent times, we have witnessed the building of large-scale solar power plants, whether it be in offices or at home rooftops. The government even provides solar power plants at a subsidized rate to people who wish to install one in their houses. The use of wind and water energy has also increased exponentially and is highly encouraged by the government. Upon research, it has also been found that India has massive potential to make use of bioenergy, with approximately 25GW of power coming from agricultural waste, agriculture being a major source of our GDP. Employment and investment have been going on a large scale in this sector during recent years, and it is only up from here. Some companies excelling in this field are Reliance Industries, NTPC, Adani Green Energy and many more.
3. IT Sector:
The information technology sector of India has been a significant provider of qualified software workers to the whole world. The expansion of the sector has been evident in India as well. By the year 2025, sales in this sector are bound to go over 300 billion US dollars. Due to the exemplary service provided by Indian IT workers, companies from all over the world hire people from here. With the introduction of new and modern technologies like AI and cloud computing, the growth of the IT sector in India has picked up speed. Adding to that, the government has launched many initiatives to encourage the expansion and investment of the same amongst the youth of the country. An example of this is the Digital India program, providing internet connections to as many residents as possible and encouraging them to make use of digital technology. A lot of government regulations have also been underway to promote the role of the IT sector. Some leading Information Technology companies in India are Infosys, HCL Technologies, Wipro, Tata Consultancy Services and more.
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4. Real Estate Sector:
The real estate market of India has been showing remarkable growth and immense contribution to the economy of the country. Many legal reforms and policies have been introduced to change the dynamics of the real estate industry to make it more investable and profitable. The industry had been facing a lot of decreases in demand and funding. The government had thus introduced the Affordable Housing Program and the Real Estate Regulatory Authority (RERA) to aid the real estate sector in financial and project completion matters. This was done to create transparency in the housing industry and provide affordable housing options to people in need. Since the urban population of the country has been showing rapid expansion, the demands for housing facilities are bound to increase. Demands are also on an upward scale for office space facilities due to the growing business operations and IT sector jobs. The Indian real estate industry is successfully overcoming all its obstacles. Some leading companies in this industry are Oberoi Realty and Indiabulls Real Estate.
5. Automobile Sector:
The automobile industry contributes a whopping 7 percent to the GDP of India’s economy. Considering the massive population, almost every household needs an automobile. Whether it be cars or scooters, India is one of the biggest automobile markets in the world. During the COVID pandemic, the country witnessed a dip in the demand for vehicles. However, observing recent trends, the sector is undoubtedly making a comeback, thanks to the rapid urbanisation and growth in infrastructure. One of the most well-known government initiatives in recent times, the Faster Adoption and Manufacture of Electric Vehicles (FAME), has been launched to promote the use of electric vehicles, which the government will provide at cheaper rates than fuel-run cars. More and more programs like the Production Linked Incentive program are underway for the same purpose. Some important companies in this industry are Maruti Suzuki India Ltd, Munjal Showa Ltd, Jamna Auto Industries, Motherson Sumi Systems Ltd and many more.
These sectors have been a highly motivating factor for investors all around the world to invest in India and its promising industries.
