India’s growth trajectory in the global economy is no longer solely reliant on its traditional industries. With rapid technological advancements, shifting consumer demands, and government initiatives, the country is seeing the emergence of several new industries with vast growth potential. This two-part series will explore these emerging industries in India, discussing both their current state and the immense possibilities they offer for sustained economic growth.
In Part 1, we will dive into the first five industries that are set to redefine India’s economic landscape: Biotechnology and Biopharma, Renewable Energy Storage and Green Hydrogen, AgriTech and Precision Farming, Luxury Goods and Services, and Healthcare Technology (Telemedicine & Medical Devices).
1. Biotechnology and Biopharma
Current Play:
India has already established itself as a key player in global pharmaceuticals, and the biopharma industry is on the rise. The sector was valued at approximately $70 billion in 2020, driven by vaccine production, biosimilars, and diagnostics. India is also the world’s largest vaccine producer, playing a pivotal role in global health through initiatives like the production of COVID-19 vaccines.
Prospective Potential:
The Indian biopharma market is projected to reach $120-140 billion by 2025, fueled by advancements in personalised medicine, gene therapies, and immunotherapies. The sector’s growth will be supported by continued government investment in research and development (R&D) and initiatives like the Biotechnology Industry Research Assistance Council (BIRAC), which supports biotech startups.
Benefits:
- Job Creation: R&D, manufacturing, and distribution will generate high-skilled employment opportunities.
- Global Competitiveness: India’s existing strength in vaccines and biosimilars provides a competitive edge in the global market.
- Healthcare Innovation: Advancements in genetics and biopharmaceuticals could lead to better, more targeted treatments.
2. Renewable Energy Storage and Green Hydrogen
Current Play:
India is one of the fastest-growing renewable energy markets globally, particularly in solar and wind energy. With a current capacity of over 100 GW in renewables, India is making strides toward a green energy future. However, the lack of effective energy storage solutions presents a significant challenge. India is beginning to invest in battery storage and green hydrogen production as part of its sustainability goals.
Prospective Potential:
India aims to generate 500 GW from non-fossil sources by 2030, and its green hydrogen sector is projected to be worth $8 billion by 2030. The government’s push for green energy solutions and hydrogen technology will catalyse this transition. Policies like the National Hydrogen Mission will be pivotal in scaling up green hydrogen production.
Benefits:
- Energy Security: Storage and green hydrogen can help India reduce its dependence on fossil fuels and increase energy independence.
- Economic Growth: Investment in green technologies can boost exports, especially to energy-hungry regions like Europe.
- Job Creation: This sector will create high-tech jobs in engineering, manufacturing, and research.
3. AgriTech and Precision Farming
Current Play:
Agriculture remains a core part of India’s economy, with over 50% of the population employed in the sector. However, productivity remains low due to outdated methods. The rise of AgriTech, leveraging AI, IoT, and drones for precision farming, is changing this dynamic. As of 2023, India’s AgriTech sector was valued at approximately $1.8 billion, and this is expected to grow significantly.
Prospective Potential:
The AgriTech market in India is expected to reach $24 billion by 2025, driven by innovations in smart irrigation, farm management software, and vertical farming. Investment in these technologies could significantly increase agricultural productivity. Programs like the Pradhan Mantri Krishi Sinchayee Yojana and Fasal Bima Yojana are boosting the adoption of these technologies.
Benefits:
- Increased Productivity: Precision farming can reduce costs and increase crop yields.
- Rural Upliftment: AgriTech can enhance livelihoods in rural areas, helping to reduce poverty.
- Sustainability: Smart farming techniques can promote sustainable agriculture, conserving resources like water and reducing pesticide use.
4. Luxury Goods and Services
Current Play:
India’s luxury goods market, though still relatively small compared to global giants like China, is experiencing rapid growth. The luxury sector, valued at $10 billion in 2020, includes high-end automobiles, fashion, and fine dining. Major international luxury brands such as Louis Vuitton and Rolls-Royce have found a strong market in India’s affluent urban centres.
Prospective Potential:
India’s luxury market is projected to grow to $30 billion by 2025, driven by a rising number of wealthy individuals and an increasing appetite for personalised luxury experiences. By 2024, India’s luxury market is expected to be worth $14 billion.
Benefits:
- Economic Growth: The growth of the luxury market will stimulate domestic demand for premium products and services.
- Employment: Luxury retail, services, and hospitality will generate jobs, especially in metropolitan areas.
- Cultural Export: The growth of Indian luxury brands could eventually lead to international recognition.
5. Healthcare Technology (Telemedicine & Medical Devices)
Current Play:
India’s healthcare sector has been leveraging technology, especially telemedicine and digital health solutions, to bridge the gaps in service delivery. Telemedicine platforms like Practo and mfine have seen rapid growth, especially during the pandemic. The telemedicine market was valued at $830 million in 2020 and is growing at a rate of 31.2% annually.
Prospective Potential:
Telemedicine and medical devices are expected to grow significantly, with the market potentially reaching $5 billion by 2025. India’s healthcare infrastructure is improving, and innovations in AI, remote monitoring, and diagnostics are driving the sector’s growth. India’s healthcare infrastructure is improving, aided by schemes like Ayushman Bharat and the National Digital Health Mission (NDHM).
Benefits:
- Improved Access to Healthcare: Telemedicine can help provide healthcare services in rural and remote areas.
- Cost Efficiency: Reducing the need for in-person consultations can lower healthcare costs.
- Innovation in Health Services: Growth in digital health technologies will lead to better patient outcomes and personalised care.
These industries promise to boost India’s GDP and, at the same time, provide vital solutions to some of the country’s most pressing challenges, from healthcare and energy security to agricultural productivity and environmental sustainability. The biotechnology and biopharma sectors will continue to cement India’s position as a global healthcare leader, while renewable energy innovations will help India transition to a cleaner, more sustainable energy future. AgriTech will transform the agricultural landscape, improving yields and driving rural prosperity, while the luxury goods segment will provide us with a platform to innovate and nurture our rich cultural inheritance and showcase it at home and abroad. It will provide an opportunity to revive and reinvent traditional arts and crafts that are slowly dying and provide a new lease of life to skilled artisans and workers. The expansion of healthcare technology will help to reshape access to healthcare across the length and breadth of the country, ensuring a better quality of life for our people.
Collectively, these emerging industries in India have the potential to generate millions of jobs, foster innovation, and create a more resilient, self-sustaining economy. As these sectors grow, they will not only enhance India’s global competitiveness but also contribute significantly to its economic diversification. To conclude in the words of Dr. Arvind Subramanian, former Chief Economic Advisor to the Government of India, “India’s growth story is not just about scale, but about innovation in sectors that can drive economic transformation. The future of India lies in harnessing the immense potential of emerging industries that can shape a more sustainable and inclusive global economy.”
In Part 2 of this series, we will delve into the next set of industries: Fintech and Digital Payments, Electric Vehicles and Battery Manufacturing, Space Technology and Satellite Services, Advanced Manufacturing and 3d Printing, and Tourism and Experience-based Services. Stay tuned to discover how these sectors will further shape India’s future.
