Top Fastest Growing Sectors in India: Who Are the Major Players in Each of Them?

Last updated:
Top Fastest Growing Sectors in India: Who Are the Major Players in Each of Them?

Top Fastest Growing Sectors in India: An Overview

According to the Economic Times; the Indian economy is expected to grow by 7.5% in FY2022 and  8% in FY2023. This is because both the government & private sector is investing more in infrastructure and technologies. Investors are willing to invest more of their savings into India's fastest-growing sectors.

Many analysts think that by 2022, the Indian Stock Market will have the fifth-largest market capitalization in the world. The market's growth will result from government efforts, international relations, how the market works, etc.

Continue reading to find out which sector will grow in the future in India and which are suitable investments.

Fastest Growing Sectors in India

IT Sector

In the last two years, the IT Tech business has flourished, particularly in Artificial Intelligence, Data Analytics, Data Science, and Big Data. The IT business has expanded at such a rapid rate and magnitude that it is almost inconceivable. Approximately 33 Indian IT start-ups have earned "Unicorn" status, signifying their worth exceeding $1 billion. The Nifty Index of the IT Sector has returned a stunning 132% over the last two years. India has over 560 million internet users, making it the second-largest online market after China.

Moreover, Union Commerce and Industry Minister Piyush Goyal said on January 16th that India's IT industry could significantly increase services exports to $1 trillion annually. It is evident that India is thriving in this fast-growing industry.

Major Players in IT Sector

Healthcare Sector

The previous two years have been rather difficult for the healthcare business, but with the aid of cutting-edge technological solutions and competent workers, the sector has overcome every obstacle. The future is hopeful since the sector is now well-equipped and organized. According to Invest India, the Indian healthcare industry is projected to reach $372 billion by 2022. In addition, India's hospital sector contributes 80% of the healthcare industry and is projected to increase by 16-17% to $132.84 billion by 2022. It is, without a doubt, one of the fastest-growing sectors in India.

Major Players in Healthcare Sector

FMCG Sector

One of India's fastest-growing industries is the FMCG sector. 50% of this segment's sales come from personal care and household items alone. Easy access, lifestyle changes, and increased awareness are some elements driving this industry's development. The increased digital connection in urban and rural regions has boosted sales in this industry through e-commerce platforms. This industry has made 59 billionaires, which is the third most of any in India.

Major Players in FMCG Sector

Renewable Energy Sector

We all know the climate is deteriorating; therefore, every country must cut carbon emissions under the Paris Agreement. Renewable energy is an attractive investment. Solar panels are selling well, and renewable power is getting more inexpensive. According to a report by the World Economic Forum, India has targeted to attain 175GW of renewable power by the end of 2022 and has boosted its target for 2030 to 450GW.

The Ministry of Power founded REIPFB to provide one-stop help to industry and investors for project development and new investment in India's renewable energy sector. Over the previous seven years, over $79 billion has been spent on renewable energy in India, bringing its installed capacity to over 141 gigawatts. In this scenario, Union Budget 2022 allotted an additional 19500 Cr to fulfill the future target of this growing sector in India. 

Major Players in Renewable Energy Sector

Infrastructure Sector

Infrastructure has been one of the pillars of progress, enabling exponential economic growth. The industry includes projects like highways, railway lines, expressways, aviation, shipping, energy, electricity, and oil & gas. However, the epidemic has greatly affected the infrastructure industry, which primarily depends on manpower.

Despite this, investors may anticipate solid long-term development in the fast-growing industry. Especially because the Make in India effort is gaining attraction. The expansion of the industry will be aided by the national and state governments' ambitions for smart cities and increasing emphasis on infrastructure development.

Major Players in Infrastructure Sector

Fintech Sector

The FinTech business was expanding rapidly, tripling every two years. However, since the COVID crisis, FinTech has become one of India's fastest-growing industries.

As a result of the global epidemic, FinTech has become a must for all organizations to survive in these difficult times. FinTech Solutions were rapidly adopted due to the desire for financial market fluidity enabled by advanced technology. While 2020 and 2021 were the years of FinTech's acceptance, 2022 and beyond are the years of FinTech's growth, supported by continual innovation and revolution.

Major Players in Fintech Sector

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Feature Alert: Is there a way to make savings a daily habit? Moreover, can we spend as well as save simultaneously?  Introducing Mini Save. A revolutionary way to save while you spend! Click here to know .

Remember the good old piggy bank that was a common occurrence in many households? Inspired by the simple principle of saving spare change, we launched a new feature: Mini Save. Check how Mini Save helps you to save here!

Wrapping Up

This article evaluates the list of fast-growing industries in India. As the economy starts to recover, numerous industries must decide whether to return to pre-lockdown practices or stick with the newly established standards and pave the way for the future.

It makes sense for a wise investor to invest long-term in India's rising industries. However, there is a crucial lesson to be drawn from this: not every developing area will yield exceptional profits. Diversification is the best way to pick India's finest industries for investment. 

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed. 

  • Which technological sector will affect other sectors soon?

  • Which industry will be the fastest expanding in India by 2025?

  • Which sector will be the best in India in 2025?