Our economy is rapidly growing. There are several growing industries in India that are leading the way in innovation, investment, and job creation. From fintech transforming digital finance to electric vehicles (EVs) revolutionising transportation, these industries are shaping the nation’s future.
Some of India’s biggest industries today started as niche sectors. But today, India is one of the world’s fastest-growing economies.
With advancements in technology, renewable energy, biotech, and digital finance, India is becoming a global hub for emerging sectors. Do you know which industry is booming in India and which top sectors are fueling this expansion?
Let’s explore the top growing industries in India and see which sector will grow in future in India, in 2025 and beyond!
Top Growing Industries in India- 2025
In 2025, some of the fastest-growing industries in India include the following:
- Information Technology (IT)
- Renewable Energy
- Healthcare
- E-commerce
- Fintech
- Manufacturing
- Infrastructure
- Telecommunications
- Fast-Moving Consumer Goods (FMCG).
- Electronics Manufacturing
These upcoming industries in India are booming due to technological advancements, government initiatives, and increasing consumer demand.
Upcoming industries in India are full of potential—start investing with a free demat account!
Let us explore the key trends and the future expected growth of these emerging sectors in India!
Upcoming Industries in India: Future Growth Trends and Investment Insights
Where Is India’s Growth Heading?
Here are the Key Industries to Watch in 2025.
- Growing Industries in India: Why IT Remains a Top Sector for Future Growth
The IT sector remains a key contributor to India’s economy.
The Information Technology (IT) sector is one of the fastest-growing industries in India. With businesses going digital, the demand for cloud computing, artificial intelligence (AI), and cybersecurity is booming.
In the first half of 2024, the Indian IT and business services market grew to $7.4 billion, which is almost 6% more than last year. Experts predict it will reach $19.8 billion by 2028, making it one of the best sectors to invest in.
The IT sector is also hiring at a fast pace. The workforce grew from 5.58 million in 2023 to 5.67 million in 2024, and it’s expected to add 1.26 lakh more jobs in 2025.
- Renewable Energy: The Fastest Growing Industry in India & a Top Sector in the Stock Market
India’s renewable energy sector is expanding rapidly. As of January 2025, the country’s renewable energy capacity has reached 217.62 GW.
Key Developments in 2024:
- Solar power capacity grew by 24.5 GW
- Wind power capacity increased by 3.4 GW
The Indian government has set an ambitious target of 500 GW of non-fossil fuel-based energy by 2030.
Businesses and global investors are actively funding solar and wind projects. As India works towards reducing its carbon footprint, renewable energy remains one of the fastest-growing industries in the country.
- Healthcare: One of the Best Sectors to Invest in India’s Future Growth
India’s healthcare sector is experiencing significant growth. This is driven by increased government spending, rising health awareness, and advancements in medical technology. In the 2024-25 fiscal year, the government’s health expenditure doubled to ₹6.1 lakh crore from ₹3.2 lakh crore in 2020-21.
This increased funding has enhanced healthcare infrastructure and services nationwide.
The telemedicine market in India has also seen remarkable expansion. Valued at USD 3.1 billion in 2024, it is projected to reach USD 19.9 billion by 2033.
This growing sector is expected to surpass $610 billion by 2026.
- E-commerce: The Digital Shopping Boom
India’s e-commerce industry is experiencing remarkable growth. Now, if you still want to know in which sector India is growing, E-commerce is one of those.
It is driven by increased internet access, smartphone usage, and digital payment adoption.
In 2024, the market was valued at $147.3 billion, reflecting a 23.8% increase from the previous year.
Projections indicate that by 2029, the market could reach approximately $643 billion, expanding at a compound annual growth rate (CAGR) of around 39.37% during the 2024-2029 period.
- Fintech: An Emerging Sector in India Reshaping Financial Services
From mobile banking, Google Pay, and UPI transactions to AI-powered financial services, the industry is transforming the way Indians manage money. As more people shift to cashless transactions, this sector is expected to flourish further.
In 2024, the industry generated revenues of $25 billion, marking a 56% increase from the previous year.
A significant driver of this growth is the Unified Payments Interface (UPI), which accounted for 83% of India’s digital payments in 2024.
- Manufacturing: A Future Growth Sector in India Driven by ‘Make in India’
India’s manufacturing sector showed a strong performance in March 2025. You will be amazed to know thatthe HSBC India Manufacturing PMI rising to 58.1 from 56.3 in February, marking the fastest expansion in eight months. This growth is attributed to strong domestic demand and increased output.
In March 2025, the HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 58.1, up from 56.3 in February, indicating the fastest expansion in eight months.
- Infrastructure: A Key Player in India’s Growing Industries
Infrastructure is a critical driver of India’s economic growth. This all is visible from the massive investments in roads, railways, ports, and smart cities. As India continues to urbanise, the demand for modern infrastructure is increasing, making this one of the fastest-growing industries in India.
- Telecommunications: Expanding Connectivity
With the rapid expansion of 4G and 5G networks, the telecommunications sector is growing at an unprecedented rate. The increasing adoption of smartphones and internet services is driving demand for better connectivity and advanced telecom solutions. This sector is expected to remain one of the fastest-growing industries in India.
As of September 2024, the country had over 1.19 billion telephone subscribers, with 1.153 billion being wireless users. The teledensity stood at 84.69%, reflecting the widespread reach of telecom services across both urban and rural areas.
The broadband segment has also seen remarkable growth, with 949.21 million subscribers as of August 2024.
Government initiatives, such as the ‘Digital India’ program, and the introduction of 5G services are expected to revolutionise various industries. These include, healthcare, education, entertainment, etc.
- FMCG: Changing Consumer Preferences
The FMCG sector, which includes household and personal care products, is witnessing strong growth due to rising incomes and urbanisation. With changing consumer behavior and increased digital penetration, companies in this industry are expanding their product lines and marketing strategies to meet growing demand.
Explore the top 10 FMCG companies in India!
- Electronics Manufacturing
India has introduced a $2.7 billion production-linked incentive scheme. It aims to boost electronics manufacturing. Overall, this whole idea is expected to attract $7 billion in investments and create 91,000 jobs over the next five years.
Growing Sectors in India- 2025
- Biotechnology: This sector plays a significant role in healthcare innovation, the biotech industry is advancing with research in pharmaceuticals and genetics.
- Electric Vehicles (EVs): Government initiatives promoting clean energy and rising consumer interest are making the EV industry one of the fastest-growing industries in India.
- Space Technology: With private investments and government support, India’s space tech sector is on the rise.
Don’t miss out on India’s top-growing industries! Begin your investment journey today.
Future Growth Sectors in India- 2025
The below table shows the upcoming and booming sectors of India.
| Industry | Sector Type | Key Growth Factors |
| Agriculture and Allied Industries | Primary | Government support, Agri-tech innovations |
| Auto Components | Manufacturing | Rising automobile demand, export growth |
| Automobiles | Manufacturing | EV adoption, increased domestic consumption |
| Aviation | Transportation | Rising air travel demand, airport expansions |
| Banking | Financial Services | Digital banking growth, financial inclusion |
| Biotechnology | Science & Technology | Pharma & healthcare R&D, genetic research |
| Cement | Infrastructure | Real estate & construction sector demand |
| Chemicals | Manufacturing | Growing exports, industrial applications |
| Consumer Durables | Retail | Rising disposable income, urbanisation |
| Defence Manufacturing | Manufacturing | Government push for self-reliance (Atmanirbhar Bharat) |
| E-Commerce | Digital Economy | Online shopping boom, new digital businesses |
| Education and Training | Services | EdTech growth, skill development initiatives |
| Electronics System Design & Manufacturing | Manufacturing | ‘Make in India’ push, semiconductor demand |
| Engineering and Capital Goods | Manufacturing | Infrastructure & industrial expansion |
| Financial Services | Financial Sector | Increased financial literacy, digital adoption |
| FMCG (Fast Moving Consumer Goods) | Consumer Market | Rural penetration, changing consumer habits |
| Gems and Jewellery | Retail & Export | Gold demand, rising disposable income |
| Healthcare | Services | Medical tourism, increased health awareness |
| Infrastructure | Core Industry | Government investment, urbanisation |
| Insurance | Financial Services | Higher awareness, regulatory push |
| IT & BPM (Information Technology and Business Process Management) | Digital Economy | Cloud computing, AI & automation |
| Manufacturing | Industrial | Production-linked incentives (PLI), exports |
| Media and Entertainment | Digital Economy | OTT boom, gaming industry growth |
| Medical Devices | Healthcare | Increased demand, local manufacturing growth |
| Metals and Mining | Industrial | Industrial demand, government policies |
| MSME (Micro, Small and Medium Enterprises) | Industrial | Credit schemes, digital transformation |
| Oil and Gas | Energy | Rising energy needs, refinery expansions |
| Pharmaceuticals | Healthcare | Export growth, R&D investments |
| Ports | Transportation | Trade expansion, logistics efficiency |
| Power | Energy | Renewable energy integration, smart grids |
| Railways | Transportation | Modernisation, high-speed rail projects |
| Real Estate | Infrastructure | Smart city projects, affordable housing demand |
| Renewable Energy | Energy | Solar & wind power expansion, green energy |
| Retail | Consumer Market | Omnichannel presence, growing e-commerce |
| Roads | Infrastructure | Highway & expressway developments |
| Science and Technology | Research | AI, space exploration, and innovation funding |
| Services | Economy | Gig economy, service sector dominance |
| Steel | Industrial | Infrastructure & auto sector demand |
| Telecommunications | Digital Economy | 5G rollout, broadband expansion |
| Textiles | Manufacturing | Export incentives, ‘Make in India’ push |
| Tourism and Hospitality | Services | Domestic tourism boost, luxury market growth |
These sectors not only contribute to India’s economic growth but also align with global sustainability goals.
Conclusion
India is experiencing rapid economic growth. Currently, it offers numerous investment prospects through fast-growing sectors and industries. However, a crucial takeaway is that an emerging expanding sector guarantees remarkable returns. Hence, adopting a diversified strategy is the optimal way to identify the best sector to invest in India.
Growing Industries in India 2025 | FAQs
India is growing in IT, renewable energy, fintech, healthcare, and infrastructure. The renewable energy sector reached 217.62 GW as of January 2025.
Fintech, EVs, healthcare, and e-commerce are booming. The fintech sector generated $25 billion in revenue in 2024, and e-commerce is expected to hit $643 billion by 2029.
Top industries include IT, renewable energy, fintech, healthcare, and manufacturing. India’s IT market may touch $19.8 billion by 2028, and UPI processed 172 billion transactions in 2024.
Renewable energy and fintech are the fastest-growing sectors in India. As per the latest data, solar power capacity increased by 24.5 GW in 2024, while fintech revenues surged 56% year-on-year.
EVs, real estate, healthcare, and agritech are growing fast. Government spending on healthcare doubled to ₹6.1 lakh crore in 2024-25.
AI, automation, green energy, EVs, and space technology are expected to lead. India is heavily investing in solar, wind, and hydrogen energy projects for the future.
Emerging industries in India include space tech, green hydrogen, metaverse, and genomics. The green hydrogen sector is expected to play a key role in India’s energy transition.
The EV industry and SaaS sector are expanding rapidly. India is becoming a global hub for cloud-based software solutions and electric mobility.
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