Unveiling the Top 10 Fastest Growing Industries in India
Written by Sanjay Kumar
The Indian economy has been experiencing a significant transformation over the years, fueled by various industries that have witnessed remarkable growth. With a burgeoning population, expanding middle class, and increasing consumer spending power, India has emerged as a thriving market for numerous sectors.
In this dynamic landscape, certain industries have shown exceptional potential and have become the driving forces behind India’s economic growth. This article delves into the top 10 fastest-growing industries in India, exploring their key characteristics, contributing factors, and future prospects.
The Rising Stars: India’s Top 10 Fastest Growing Industries
01 – Healthcare Industry
The healthcare industry holds a prominent position among the fastest-growing sectors in India. India has emerged as a major market for pharmaceuticals and healthcare, with significant global exports. It encompasses various facets such as medicine, hospitals, medical plans, medical equipment, and health insurance. Both private and public healthcare sectors thrive in the country, driven by the increasing population of individuals aged 60 and above, as well as the rise in lifestyle diseases. Speculations suggest that the pharmaceutical sector will experience a tremendous growth rate of 16%. Additionally, the number of private hospitals in India is rapidly increasing.
India contributes a significant portion, approximately 12.5%, to the global healthcare wealth. Among the prominent figures in this sector, Cyrus Poonawalla, renowned as the vaccine king, holds the esteemed position of being the wealthiest healthcare billionaire worldwide. Notably, his success is attributed to his ownership of the Serum Institute, a leading institution in vaccine production.
02 – Food Industry
India, being primarily an agricultural nation, stands as the second-largest food manufacturer worldwide. The food industry in India comprises a wide range of products, including vegetables, fruits, milk and dairy products, chocolates, grain processing, poultry and meat, fish hatcheries, sweets, and plantations.
This industry is witnessing continuous growth, and agricultural products enjoy partial or complete tax exemptions. India also plays a significant role in the manufacturing of processed food, which has witnessed significant expansion in recent years. The government provides support to the industry through initiatives like 100% Export Oriented Units (EOUs), subsidies, industrial licenses, and collaborations.
03 – Digital Industry
India’s traditional communication medium, telegram, became obsolete a few years ago, making way for newer smartphone apps, social media platforms, and internet-based television. Digital technology has transformed the way people communicate, making it nearly impossible to separate digital tech from communication. The revolutionary changes in communication technology in India are truly remarkable. Mukesh Ambani, with a net worth of INR 9,090 crores USD, is the richest individual in this sector.
04 – Financial Industry
With the advent of smart apps and the internet, digital payments have experienced tremendous growth in recent times. The demonetization drive further accelerated the adoption of digital payment services in India. The government has also been actively promoting digital payments, and India’s mobile payment system is recognized as one of the most advanced globally. Additionally, the government supports technology implementation in rural areas through initiatives like Common Service Centers (CSCs).
Some of the top financial institutions in India include Bajaj Finance Limited, Aditya Birla Finance Ltd, L & T Finance Ltd, Tata Capital Financial Services Ltd, Muthoot Finance Ltd, Mahindra & Mahindra Financial Services Limited, HDB Financial Services, Power Finance Corporation Limited, Shriram Transport, and more.
05 – Infrastructure Industry
Infrastructure plays a crucial role in the growth of modern industries and ensures their benefits reach rural areas. The “Make in India” program initiated by Prime Minister Mr. Narendra Modi has fueled a boom in building and construction activities. Infrastructure development acts as a gateway to creating smart cities equipped with airports, hospitals, schools, efficient transportation systems, and highways. Strong infrastructure has also contributed to the development of new tourist destinations, thereby boosting the tourism industry in India.
06 – Software and Services
The software and services sector encompasses a wide range of offerings and is led by prominent companies such as Infosys, Wipro, TCS, and Tech Mahindra. India has positioned itself as a preferred investment destination for global investors, primarily due to the cost competitiveness of its IT services. This sector has produced the second-largest number of billionaires in the country, with 73 individuals achieving billionaire status. Azim Premji, with a net worth of INR 1,17,100 crore, holds the top position as the richest person in this domain.
07 – Chemicals and Petrochemicals
Contributing around 6% to the national GDP, the chemicals and petrochemicals sector plays a significant role in India’s economy. Major players in this sector include Reliance Industries, Indian Petrochemicals Corporation Limited (IPCL), Gas Authority of India Limited (GAIL), and Haldia Petrochemicals Limited (HPL). With a diverse product portfolio serving various downstream industries, this sector has produced the fourth-highest number of billionaires in the country, with 57 individuals achieving billionaire status. Prominent names like Mukesh Ambani and Sri Prakash Lohia are among the wealthiest in this domain.
08 – Textiles, Apparel, and Accessories
One of the oldest industries in India, the textiles, apparel, and accessories sector boasts a rich tradition and history. India is among the largest producers of textiles and apparel globally. This industry offers a diverse range of products and has produced 36 billionaires. Harish Ahuja, with a net worth of INR 5,900 crores, is the richest individual in this sector.
09 – Real Estate
The real estate sector in India encompasses housing, hospitality, retail, and commercial sub-sectors. India’s real estate market is recognized globally, with property prices appreciating significantly. This industry has given rise to the tenth-highest number of billionaire entrepreneurs in the country, with 33 individuals achieving billionaire status. Jitendra Virwani, with a net worth of INR 29,900 crores, holds the top position as the richest individual in this sector.
10 – Automobiles and Auto Components
The Indian automobiles and auto components segment is one of the largest in the world, with India serving as a major global manufacturing hub for commercial vehicles. Estimates predict a substantial increase in electric vehicle (EV) sales, with over 4 million EVs projected to be sold annually by 2025 and the number potentially reaching 10 million per year by 2030. This sector has produced 45 billionaires, with Rahul Bajaj & family leading the pack with a net worth of INR 60,700 crores.
The top 10 fastest-growing industries in India reflect the country’s dynamic and evolving economic landscape. As the nation continues to witness robust growth and embrace technological advancements, these industries are playing a crucial role in driving the economy forward. From the booming e-commerce sector to the renewable energy industry, India is harnessing its vast potential to create new opportunities and jobs for its citizens.
With a favorable business environment and a strong focus on innovation, these industries are poised to sustain their growth trajectory and contribute significantly to India’s economic development in the years to come. As investors and entrepreneurs continue to tap into these promising sectors, the future looks bright for India’s economy and its position as a global growth engine.
FAQ
01. What are the top 10 fastest-growing industries in India 2023?
Top 10 fastest-growing industries in India:
- Healthcare Industry
- Food Industry
- Digital Industry
- Financial Industry
- Infrastructure Industry
- Software and Services
- Chemicals and Petrochemicals
- Textiles, Apparel, and Accessories
- Real Estate
- Automobiles and Auto Components
02. What is the fastest-growing industry in India?
The fastest-growing industry in India can vary depending on various factors. However, in recent years, the e-commerce and online retail sector has witnessed remarkable growth with the increasing adoption of digital platforms and a rise in online shopping.
03. What is the fastest-growing industry in the world?
The fastest-growing industry in the world can also change over time. However, sectors such as technology (including artificial intelligence, big data, and cybersecurity), renewable energy, healthcare and pharmaceuticals, and e-commerce have been experiencing significant growth globally.
04. What are the top 10 fastest-growing industries in the world in 2023?
The top 10 fastest-growing industries in the world are as follows: –
- Global Airport Operation – 16.2%
- Global Hotels & Resorts – 13.6%
- Global Travel Agency Services – 11.8%
- Global Tourism – 10.8%
- Global Airlines – 7.7%
- Global Reinsurance Carriers – 6.8%
- Global Casinos & Online Gambling – 6.7%
- Global Commercial Aircraft Manufacturing – 6.3%
- Global Architectural Services – 6.2%
- Global HR & Recruitment Services – 5.7%
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