Fastest Growing Industries (Sunrise Sectors) in India
India has come a long way post the economic reforms unleashed in 1991. From being a license raj to evolving into a veritable powerhouse of investments, India Inc., has scripted a spectacular success story. An economy which was extraction oriented (Agriculture, mining etc.) has now metamorphosed into a tertiary service driven economy. However, the economic reforms can still be categorized as ‘work in progress’. Growing awareness and education levels have encouraged youngsters to look at the entrepreneurial route as a departure from the routine.
The country’s youth which is educated, aware and restless is no longer dependent on government employment to fulfil its aspirations. The nation is now home to whole new breed of entrepreneurs who operate in the small to medium scale ambit. And it’s the perfect time to take a look at the sunrise sectors which SMEs can leverage to achieve entrepreneurial success.
Auto spare parts manufacturing
The sector is experiencing hyper growth with the turnover tipped to reach $200 billion by 2026. The sector has generated 3 million jobs riding on an industry growth rate of 14.5%.
India’s automobile manufacturing industry is the 4th largest in the world contributing more than 7% of India’s GDP. It has employed 3.5+ Crore people and has a whopping 40% share of global R&D. The sector also contributes 4.3% of overall Indian exports.
Banking, Fintech & Financial Services
India has the highest fintech adoption rate of 87% with the digital payment adoption rate more than that of the USA. India’s fintech software market size is worth a mammoth $2.4 billion. The country has attracted around $5.7 billion investments in fintech during 2014-18 which was the breakout period for the sector. The fact that 29% is the highest expected ROI of fintech projects globally makes it all the more viable.
India is the third largest biotech destination in Asia Pacific region. Thanks to 150% tax deduction on R&D expenditure, the annual growth rate of the industry has been around 57%. The major contributors within the ambit of Biotechnology being biopharma with 55% revenue share followed by bio Agri with 23% revenue share.
Capital goods production
Capital goods contribute 12% to the overall manufacturing in India with manufacturing goods contributing a similar share to India’s GDP. The fast-growing sector generates about 5 million direct employment opportunities powered by 40% equipment demand. The sector has achieved an impressive $5.5+ billion electrical machinery export.
India has the 5th largest defence budget in the world and about 2.3% of GDP is spent on defence. The country’s defence manufacturing sector has 15% share in global arms & import. India’s defence production domain is powered by $1.5 billion exports making it a lucrative sector.
The sector is driven by an annual growth rate of 26% and is one of the largest consumer electronics markets in Asia Pacific region. The major components of this sector include mobile manufacturing with an annual growth rate of 185%, domestic manufacturing with 17% annual growth rate and hardware production with 8.5% annual growth rate.
India is the world’s largest milk producing nation with 32% share in the country’s overall food market. The sector generates about 11.6% share in total employment across all the sectors in the country. It has 10.6% share in India’s exports.
Leather goods production
India is the top producer of leather products like shoes, belts, wallets, bags etc., and is the world’s 2nd largest footwear producer. The country’s leather goods manufacturing sector has registered 2.8 billion footwear exports and 519 million leather garments exports. The sector employs around 4.5+ million people involved in producing 874 million finished leather exports.
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