India is one of the world’s fastest-growing economies. As of 2024, it has surpassed Hong Kong to become the fourth-largest stock market. Do you know which is the best sector to invest in 2024? It’s time to explore the growing industries in India for better investment opportunities.
In our blog, learn about:
- Which industry is growing fast in India
- The best sector to invest in
- The fastest-growing industries in India
- A list of future growth sectors in India and much more!
What are the future growth sectors, and which are the growing industries in India?
Let’s explore!
Growing Industries in India 2024
As of 2024, there are 41 growing industries in India:
| Agriculture and Allied Industries | Auto Components | Automobiles | Aviation |
| Banking | Biotechnology | Cement | Chemicals |
| Consumer Durables | Defence Manufacturing | E-Commerce | Education and Training |
| Electronics System Design & Manufacturing | Engineering and Capital Goods | Financial Services | FMCG (Fast Moving Consumer Goods) |
| Gems and Jewellery | Healthcare | Infrastructure | Insurance |
| IT & BPM (Information Technology and Business Process Management) | Manufacturing | Media and Entertainment | Medical Devices |
| Metals and Mining | MSME (Micro, Small and Medium Enterprises) | Oil and Gas | Pharmaceuticals |
| Ports | Power | Railways | Real Estate |
| Renewable Energy | Retail | Roads | Science and Technology |
| Services | Steel | Telecommunications | Textiles |
| Tourism and Hospitality |
Out of the above, how do you know which industry is growing fast in India?
Let us check it out!
Emerging Sectors in India 2024
Curious about where to invest in India? Let us explore the future growth sectors in India!
Fast-Moving Consumer Goods (FMCG)
India’s FMCG sector will experience rapid growth in 2024. This is due to increasing incomes, evolving lifestyles, and urbanization. This sector is clearly among the fastest-growing industries in India.
- The Indian food processing market is expected to reach US$ 547.3 billion by 2028. This reflects a strong future growth sector in India.
- Government-designated agro-processing clusters offer a great opportunity for those looking to invest in the growing sectors in India.
Interested to know which industry is booming in India?
- In February 2024, Varun Beverages revealed plans to invest Rs. 3,500 crores in new manufacturing plants.
The FMCG sector is a prime example of a future industry in India and one of the best sectors to invest in.
Automobile
The automobile sector is known to be the booming industry in India. It is contributing significantly to GDP and employment. However, it faces challenges, such as the global shift towards electric vehicles (EVs).
- Rising incomes and a large youth population are driving strong demand in the sector.
In January 2024, the production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles was 23,28,329 units.
That’s huge. This is indeed one of the best sectors to invest in 2024!
- The global EV market is projected to grow to US$ 1,318 billion by 2028.
- India aims to be a leader in shared mobility by 2030, creating opportunities for electric and autonomous vehicles.
- The government plans for 30% of new vehicle sales to be electric by 2030, which presents significant growth prospects in this emerging sector in India.
It is definitely a top sector in the stock market and a future industry in India.
Digital Transactions and Fintech
The Fintech sector is expanding rapidly, fueled by the rise in digital transactions and government initiatives like UPI. Technological advancements are driving the growth of this cashless economy. This is making fintech one of the fastest-growing industries in India.
- India is seeing a surge in fintech companies, with over 2,100 fintechs currently operating.
- Emerging investment options include digital gold, mutual funds, ETFs, and much more!
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- The government has announced plans for a central bank digital currency (CBDC), known as the Digital Rupee.
The fintech sector is booming with a focus on digital transactions and innovative financial solutions. It’s a top sector in the stock market and among the best sectors to invest in for future growth.
Biotechnology
India’s biotechnology sector is growing steadily. It plays a significant role in global healthcare innovation, making it one of the emerging sectors in India.
The Department of Biotechnology (DBT) was allocated Rs. 2,251.52 crore (US$ 271 million) in the Interim Budget 2024-25.
It represents a future industry in India with significant potential for innovation and expansion.
Education
The education sector is known to be one of the emerging sectors in India.
Initiatives like the National Education Policy, SSY scheme, and educational loans aim to make it a prominent sector in the stock market and a fast-growing industry in India.
- The Study In India (SII) program aims to attract more than half a million foreign students by 2047.
- The education market in India is projected to reach US$ 225 billion by FY25.
The education sector in India is rapidly evolving with increased government support. It is a promising growth area for investors.
Information Technology (IT)
India’s IT sector is a major player on the global stage, fueled by advancements in AI, IoT, and cloud computing. Government initiatives support digital growth and connectivity, driving the sector’s progress.
- India’s IT and business services market is set to reach US$ 19.93 billion by 2025.
How about AI-powered stock market predictions? That’s on the rise too!
- India’s tech industry is on track to double its revenue to US$ 500 billion by 2030.
- The Union Budget 2023-24 allocated Rs. 97,579.05 crore (US$ 11.8 billion) to IT and telecom.
Renewable Energy
India’s renewable energy sector has ambitious goals. The country ranks 4th globally in renewable energy capacity, including large hydro, wind, and solar power.
The target is 500 GW of non-fossil fuel energy by 2030, with installed capacity increasing by 396% in the last 8.5 years.
Healthcare and Insurance
India’s healthcare and insurance sectors are expanding rapidly. The market size is expected to grow from INR 0.91 trillion in 2024 to INR 1.5 trillion by 2029!
This growth is driven by demographic changes, increasing chronic illnesses, and rising incomes. Government programs and tech advancements are improving healthcare accessibility and quality.
- The sector employs 7.5 million people, making it one of India’s largest employers.
- The government plans to introduce a Rs. 50,000 crore (US$ 6.8 billion) credit incentive program to boost healthcare infrastructure.
- With the top insurance companies in India, the insurance market is set to reach US$ 222 billion by 2026.
Real Estate
The real estate sector in India is already on track to become a trillion-dollar market by 2030. Multiple reforms and regulatory changes are supporting growth in both residential and commercial segments.
The real estate sector is set to grow at a 9.2% annual rate from 2023 to 2028.
Energy
The energy sector is moving towards renewable sources, with a target of 500 GW of renewable power capacity by 2030. Multiple initiatives, such as government subsidies for the installation of solar panels, promote renewable energy capacity.
Conclusion
India continues to be a hub of growth and innovation across various industries. The fastest-growing sectors include fintech, renewable energy, biotechnology, and digital transactions, among others. If you are looking to capitalise on future growth, this list of fast-growing industries in India and future growth sectors can help you make the most of India’s economic potential in 2024.
FAQs | Growing Industries in India 2024
As of 2024, there are several growing industries in India. The emerging sectors include IT, fintech (financial technology), education, and real estate.
The services sector, which includes financing, insurance, real estate, trade, hotels, transport, communication, and business services, stands out as the best sector to invest in India in 2024.
Among the fastest-growing industries, trade, hotels, transport, and communication take the lead with a remarkable GVA growth rate of 13.7% in the financial year 2023.
The financing, real estate, and professional services sector showcased significant growth with a 6.4% GVA growth rate in FY 2023.
In 2024, the fintech sector is among the fastest-growing industries in India. This growth is driven by increasing digital transactions and innovations like UPI and digital currencies.
As of 2024, some of the largest growing industries in India include IT, healthcare, real estate, manufacturing, and financial services.
The fintech sector is expected to boom in 2024. This is due to advancements in digital transactions and government initiatives like the Digital Rupee.
There are several emerging sectors that have a promising future in India. These include education, automobile, fintech, renewable energy, biotechnology, to name a few.
Source- ibef.org, myscheme.gov.in
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.