Fastest Growing Sectors in India 2024: Economic Powerhouses

February 9, 2024
fastest growing sector in india

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India’s economic landscape is experiencing a dynamic transformation. The contribution starts from the small-scale industries to the fastest growing sector in India. Over the past few years, several sectors have experienced remarkable growth. These sectors shape India’s future economy.

The Asian Development Bank projects India’s GDP to grow 6.3% in 2023. It can rise to 6.7% in the year 2024. Each industry brings unique strengths and contributions. It begins from Flipkart and Amazon to TCS and Infosys, including e-commerce and IT leaders.  The significance of these industries in India’s economy is huge.  These industries drive employment, attract investments and foster innovation. They can also begin India’s journey towards becoming a global economic powerhouse.

Whether you dream of becoming an entrepreneur or simply want to stay informed about the exciting changes around you, this blog will introduce you to the top 5 fastest growing sector in India. We will explore their importance, impact, and the possibilities they offer entrepreneurs.

Top 5 Fastest Growing Sector in India

India’s economy is diverse and dynamic. In 2024 information technology, healthcare, and renewable energy are set to soar. The tech industry will thrive due to digital demand. Healthcare expands with a growing population and health consciousness.

Additionally, clean energy initiatives will fuel the renewable energy sector. These fastest-growing sectors in India hold immense promise for increasing economic growth. They also present exciting opportunities for social and environmental progress in India.  The top 5 fastest growing sectors of the Indian economyare:

  • E-commerce and Retail
  • Information Technology and Software Services
  • Healthcare and Pharmaceuticals
  • Renewable Energy
  • Fintech

E-commerce and Retail

The e-commerce industry in India has experienced remarkable growth lately. India will become the world’s second-largest e-commerce market by 2034.

By 2025, the Indian e-commerce sector will reach a market value of $111.40 billion. It may also exhibit a compound annual growth rate (CAGR) of 19.24%. The increasing popularity of online grocery shopping and fashion/apparel purchases drives this growth.

This industry is growing quickly because more and more people are using the internet, and the government is promoting it. The popularity of online payments has also helped this sector to grow. The way we pay for things online has also made a big difference. It is now easier and cheaper to buy things online, which has changed how people shop. Because of this, big e-commerce companies like Flipkart and Amazon are getting even more popular and growing faster.  This is not limited to the big Indian companies alone. Small scale industries have also gained benefits from this e-commerce boom. They have several opportunities in logistics, warehousing, and niche online marketplaces.

The E-Commerce titans in India include:

  • Amazon
  • Flipkart
  • Reliance Industries Ltd (RIL)
  • Myntra
  • Blinkit
  • Meesho

Job Opportunities: As more people shop online, e-commerce is gaining importance. It also offers good earning potential. Businesses are putting resources into online marketing and platforms. Thus, individuals have many opportunities to grow in this type of industry. You can work as a marketing specialist, content writer, operations manager, customer service representative, digital marketer, project manager, supply chain manager, and more.

Information Technology and Software Services

The IT and BPM (Business Process Management) sector has emerged as a major driving force for India’s economy.  These types of industries in India contribute to its GDP and public welfare. In the fiscal year 2022, the IT industry alone accounted for 7.4% of India’s GDP. It may also contribute 10% to India’s GDP by 2025.

Demand for software development, IT consulting, and outsourcing drives this change. Small IT startups can make their niche using specialized knowledge of new technologies. IT and software services could become the most profitable business in India. This is due to the increasing digitalization in each sector of the Indian economy.

Around 33 Indian IT start-ups have also achieved the prestigious “unicorn” status. India is the world’s second-largest online market, with 560+ million internet users.

The big Indian companies in IT and Software services in India include:

  • TCS
  • Infosys
  • Wipro
  • Tech Mahindra
  • Mindtree

Job Opportunities:  In 2024, IT and Software services will offer abundant job opportunities. With technological advancement, companies need skilled professionals. This industry provides you with job roles like software engineer, web developer, system analyst, IT coordinator, data scientist, user experience (UX) designer, full stack developer, etc.

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Healthcare and Pharmaceuticals

The healthcare sector in India is getting bigger and better. It is growing because the government and private companies invest more money in healthcare. The sector is expanding because the population is increasing, people are spending more on healthcare, and new medical technologies are being developed.

The COVID-19 pandemic showed how important it is to have good healthcare facilities and do research on medicines. This sector can reach a market size of $50 billion by 2025. Hence, it can be the best business in India.

Healthcare and pharmaceutical titans in India are:

  • Sun Pharmaceutical
  • Cipla
  • Divi’s Laboratories
  • Apollo Hospitals
  • Dr. Reddy’s Lab

Job Opportunities:. You can work as a lab technician, biomedical engineer, microbiologist, research scientist, and clinical trial administrator.

Packaging operators, production supervisors, and quality control analysts are common job roles in pharmaceuticals. Similarly, the healthcare sector offers job roles such as physician, therapist, medical assistant, nursing assistant, physical therapy assistant, radiologist, nutritionist, and more. 

Renewable Energy

India’s focus on sustainable development resulted in notable growth in renewable energy. The government promotes clean energy sources. This attracted solar, wind, and hydropower investments. India has tremendous potential for growth. So, India will experience greater energy demand than any other nation in the coming years. By 2070, India aims for zero carbon emissions. India may also source 50% of its electricity from renewable sources by 2030. This represents a significant step taken against climate change.

By 2030, India aims to install 450 gigawatts (GW) of renewable energy capacity. Out of this total, solar energy will contribute around 280 GW.  This is more than 60% of the target. Some major investments in the renewable energy sector include establishing 59 solar parks with a total capacity of 40 GW. There is also an investment of more than Rs. 5.2 lakh crore (US$ 70 billion). As part of the Union Budget 2024, the Central government has also allocated Rs 10,222 crore to the Ministry of New and Renewable Energy. This can also make renewable energy one of the most profitable sectors of the Indian economy.

Key contributors to renewable energy in India are:

  • Adani Green Energy
  • Tata Power
  • Borosil Renewables
  • Indraprastha
  • Reliance Power

Job Opportunities: In 2024, there will be many job opportunities in the renewable energy sector. Some important roles include technicians with solar energy and wind turbines. The main job roles in this sector include environmental scientist, energy engineer, solar installer, urban planner, wind turbine technician, energy resource analyst, etc.

Fintech

The Fintech sector in India is growing fast. It is all because of the increase in digital payments and the use of smartphones by many people. Fintech is a combination of finance and technology. It gives us new and exciting financial services. Many companies in India, big and small, are using fintech to improve their work and grow their businesses. It helps them do things faster and smarter.

The Indian fintech industry has seen impressive growth. Around 87% of people in India use fintech products. This adoption rate is 23% higher than the global average, as stated in the Economic Survey 2022-23 by the Government of India. Embedded finance combines financial services with non-financial platforms. It is predicted to reach a value of $141 billion by 2025. In 2023, over 70% of financial service providers offered embedded finance solutions. Hence, fintech can become the fastest growing sector in India in the following years.

The major players of fintech in India are:

  • Paytm
  • PhonePe
  • Razorpay
  • Mobikwik
  • PolicyBazar
  • Google Pay

Job Opportunities: In 2024, the fintech sector will offer promising job opportunities. Financial analysts, software developers, data scientists, quantitative analysts, blockchain experts, and cybersecurity experts are in high demand. It also fosters some trending start-up ideas in India.

Bonus: FMCG (Fast Moving Consumer Goods)

Fast Moving Consumer Goods (FMCG) refers to everyday products like food, beverages, and personal care items. The FMCG sector in India is experiencing growth due to increasing consumer demand, urbanization, and the rise of e-commerce.

Personal care and household products constitute 50% of this industry’s sales. As of December 2022, the FMCG market in India was valued at US$ 56.8 billion. This industry can grow at 27.9% annually from 2021 to 2027. This will lead to reaching total revenue of approximately US$ 615.87 billion. This also indicates significant growth and potential in the FMCG industry.

Key players in the FMCG sector in India are:

  • Hindustan Unilever
  • ITC
  • Nestle India
  • Dabur India
  • P&G
  • Britannia Industries

Job Opportunities:

In 2024, there will be job opportunities in the FMCG (Fast Moving Consumer Goods) sector. Some job roles include sales representatives, marketing executives, supply chain coordinators, retail managers, and production supervisors.

Growing Indian Economy

India’s economy is experiencing rapid growth in different sectors. This presents great business opportunities. It includes big companies and small-scale industries. Your question about which is the fastest-growing sector in India is answered here. The common sectors are Information technology (IT), Healthcare, and pharmaceuticals. The fields like FMCG, fintech, and e-commerce are also growing fast.

The healthcare sector is witnessing large growth among all. This is because India now prioritizes quality healthcare services for its growing population. Renewable energy is also gaining momentum in India. It focuses on reducing the dependence on fossil fuels. We are now embracing cleaner alternatives. E-commerce has also seen tremendous growth due to the rise in online transactions and the expansion of Internet accessibility. These sectors are helping the Indian economy grow by attracting investments and creating jobs. Startups with the right business ideas and mindset can succeed in these industries. This kind of fastest-growing sector in Indiaholds immense potential for young individuals to explore new career paths. You can also positively impact and contribute to the nation’s growth. So, buckle up and prepare to ride the wave of growth in these exciting sectors!

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Frequently Asked Questions ( FAQ’s )

Which is the fastest growing sector? 

The Healthcare and Fintech sectors are expected to grow in the upcoming years. The healthcare sector is improving as people are getting aware of their health. The pandemic made the need for healthcare, telemedicine, and medicines even more important. The government also promoted using digital money. Businesses and people increasingly use financial technologies. This has caused more money to be invested and more start-ups to establish. Therefore, Fintech or Healthcare can be the fastest growing sector in India.

What are the top 5 industries in India? 

Healthcare and pharmaceuticals, Automobile, Banking and Financial Services, Information technology, and Fast Moving Consumer Goods (FMCG). Healthcare and pharmaceuticals are essential for the well-being of people. Automobiles provide transportation for individuals and goods. Banking and financial services handle money and help people with savings and loans.IT fuels digital innovation, while FMCG comprises everyday products with high sales.

Which is the fastest growing sector in India for the last 10 years? 

Pharmaceutical industry has been the fastest-growing sector for the last 10 years. It produced more than 137 billionaires in India. India is a major provider of affordable generic drugs globally. India also makes a lot of vaccines that are needed around the world. More than half of the vaccines used worldwide come from India. India supplies 40% of generic medicine to the US and 25% of medicines to the UK.

Which is the richest sector in India? 

Based on the 2024 M3M Hurun Global Rich List, the healthcare and pharmaceutical sector created the most Indian billionaires last year. This shows that people working in healthcare in India became wealthy and successful. Thus, the healthcare sector is viewed as the richest sector in India. Additionally, the telecom sector has also produced billionaires like Mukesh Ambani. Thus, the telecom industry can also be included in the richest sectors in India.

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