Dynamic economic landscape of India is swiftly evolving, driven by significant growth of multiple key sectors.
India has become fastest growing (6.5%) economy globally, as per latest reports by International Monetary Fund (IMF). According to Pierre-Olivier Gourinchas, chief economist of the IMF: “Indeed, India is one of the strong performers. We had a fairly sharp revision in the Fiscal Year 2023 to 2024, the one that is ending, and that has just ended. Then we have 0.3 percentage point upgrade for Fiscal Year 2024 to 2025. So India is doing quite well.”
With a GDP of USD 4.1 trillion, India is ranked in top 5 economies in the world. But, which are those sectors growing better in India?
In this article, we will discuss about fastest growing industries which are going to shape Indian economy. Each of these sector represents an aspect of India's transformation into a leading economic force.
The Information Technology industry has flourished over last couple of decades in India. With the advancement in Artificial Intelligence (AI), Data Science, and growing educated workforce, India’s performance and potential in IT sector have been reflected in Nifty IT Index. With more than 560 million internet users, India is currently standing at the second position in online market globally. The major players in this industry are TCS, Infosys, Wipro, and Tech Mahindra.
The hospital and healthcare domain is another booming sector in India. Owing to technological advancements and skilled professionals, this sector is expected to grow bigger in coming years. Moreover, India is one of the largest suppliers of pharmaceuticals globally. The key players in this sector are Sun Pharmaceuticals, Cipla, Apollo Hospital Enterprise, Dr Reddy's Laboratories, and so on.
Being the most populous country, India has a high demand in household items, personal care, and lifestyle products. With the access to e-commerce, FMCG sector is predicted to grow much bigger and create more millionaires. The main players of this industry are Hindustan Unilever Ltd, ITC Ltd, Dabur India, and so on.
With rising awareness in green infrastructure to reduce carbon footprints, numerous start-ups are venturing into renewable energy sector. The share of renewable energy like wind and solar has increased to 30.1% in 2023, much better than 2022 (27.5%). The key players of this industry are Adani Green Energy Ltd, Tata Power Company Ltd, Borosil Renewables Ltd, and Reliance Power Ltd.
Infrastructure has been and will be key drivers of Indian economy. With the support by Indian government like ‘Make in India’ campaign, infrastructure sector is set to reach new heights in this decade. The key players in this industry are Reliance Infrastructure Ltd, Hindustan Construction Company Ltd, and so on.
The FinTech industry has experienced an exponential growth in last 10 years. With Indians embracing digital payment, Fintech has become one of the prominent drivers of Indian economy. Some of the key players are Bajaj Finance Ltd, One 97 Communications Ltd, and HDFC Asset Management Company Ltd.
“Growth in India is projected to remain strong at 6.8 per cent in 2024 and 6.5 per cent in 2025, with the robustness reflecting continuing strength in domestic demand and a rising working-age population,” according to the latest edition of the World Economic Outlook released by the IMF.
According to the Asian Development Bank: “The Indian economy is expected to grow by approximately 8% in the next 5-6 years, endorsed by increasing public investment in infrastructure and a pickup in private sector investment.”
Both Indian and foreign investors are motivated to invest in these growing sectors in India.
