In Part 1 of this series, we explored five transformative sectors that are rapidly reshaping India’s economic landscape. Now, in Part 2, we’ll take a deeper dive into five additional industries with incredible growth potential. These industries are not just emerging trends but crucial elements in driving India’s transition to a high-tech, sustainable, and globally competitive economy. Let’s examine each of these in more detail.
6. Fintech and Digital Payments
Current Play:
India is already leading the way in digital payments, with platforms like UPI (Unified Payments Interface) enabling seamless transactions. In 2023, India’s digital payments ecosystem reached ₹10 trillion ($125 billion), with platforms like UPI continuing to revolutionise the payments landscape. The fintech sector has seen rapid growth, particularly in mobile wallets and online lending platforms like Paytm, PhonePe, and Razorpay.
Prospective Potential:
India’s fintech market is expected to surpass $150 billion by 2025, driven by increasing adoption of mobile payments, lending, insurance, and investment platforms, alongside supportive government initiatives. The government’s focus on financial inclusion through initiatives like Jan Dhan Yojana and Digital India will further expand this market.
Benefits:
- Financial Inclusion: Digital platforms can provide access to financial services for millions of unbanked individuals.
- Job Creation: Fintech creates job opportunities in AI, cybersecurity, and blockchain technology.
- Economic Efficiency: Digital payments reduce transaction costs, enhance transparency, and boost economic activity.
7. Electric Vehicles (EVs) and Battery Manufacturing
Current Play:
India’s electric vehicle market is growing, with the government setting an ambitious target to achieve 30% electric vehicle adoption by 2030. As of 2023, India has more than 2.5 million electric vehicles on the road, fueled by rising consumer demand and government initiatives like FAME II. India is also investing in electric vehicle charging infrastructure and battery manufacturing.
Prospective Potential:
By 2025, India’s EV market is expected to exceed $10 billion, supported by expanding EV adoption, charging infrastructure, and the country’s growing battery manufacturing capabilities. The country is also ramping up its battery manufacturing capabilities, with domestic and foreign companies investing in the sector.
Benefits:
- Environmental Impact: Widespread EV adoption can significantly reduce carbon emissions.
- Job Creation: The growth of EV manufacturing and battery production will create skilled jobs.
- Energy Independence: EVs reduce the need for imported oil, enhancing India’s energy security.
8. Space Technology and Satellite Services
Current Play:
India’s space sector has recently made headlines with successful missions like Chandrayaan, Mangalyaan, Gaganyaan, and Aditya-L1, demonstrating the country’s increasing capabilities in space exploration. The private sector, with companies like Skyroot Aerospace, is now entering the space race.
Prospective Potential:
India’s space industry is expected to grow to over $60 billion by 2025, driven by both government programs and private sector involvement in satellite services, launch capabilities, and space tourism. The country’s cost-effective satellite services and growing private sector involvement will position it as a leader in the global space economy.
Benefits:
- Global Competitiveness: India’s space capabilities can provide affordable satellite launch services to other countries.
- Technological Innovation: Space exploration leads to advancements in materials science, AI, and telecommunications.
- Economic Growth: The space industry could stimulate the economy by creating high-tech jobs and fostering innovation.
9. Advanced Manufacturing and 3d Printing
Current Play:
India’s manufacturing sector is increasingly integrating advanced technologies like 3d printing, particularly in industries such as aerospace, automotive, and healthcare, contributing to improved production efficiency and product innovation. Industries like automotive, healthcare, and aerospace are beginning to explore the potential of these technologies.
Prospective Potential:
The global 3d printing market is expected to reach $60 billion by 2025, with India positioned to tap into this growth through a burgeoning ecosystem of startups and adoption across various industries.
Benefits:
- Cost Reduction: 3d printing can make production more efficient, reducing costs.
- Customisation: It allows for customised, complex designs, which can transform industries.
- Innovation: Advanced manufacturing techniques will drive innovations in product development and production processes.
10. Tourism and Experience-based Services
Current Play:
India’s tourism industry contributes significantly to its GDP, with 9.2% of the economy reliant on tourism in 2019. The sector includes eco-tourism, wellness tourism, and adventure travel, which have seen growing interest, particularly after the pandemic.
Prospective Potential:
India’s tourism market is projected to reach $50 billion by 2025, driven by both domestic and international travel, as well as growing demand for experiential and wellness-based tourism. The demand for unique, experiential travel services will continue to rise as travellers seek more personalised and meaningful experiences.
Benefits:
- Economic Contribution: Tourism will continue to be a key contributor to India’s GDP, generating employment and boosting the service sector.
- Cultural Preservation: Tourism promotes the preservation of India’s rich cultural heritage.
- Sustainable Growth: Eco-friendly and experience-based tourism models can drive sustainable economic development in rural and underserved regions.
This two-part series has highlighted the transformative potential of emerging industries in India, focusing on sectors that are poised to drive long-term growth and redefine the country’s economic landscape. In Part 1, we explored the growing significance of Biotechnology and Biopharma, Renewable Energy Storage and Green Hydrogen, agri-tech and Precision Farming, Luxury Goods and Services, and Healthcare Technology. These industries will not only address critical domestic needs, such as healthcare, energy security, and agricultural productivity, but also position India as a global leader in innovation and sustainable growth.
In Part 2, we delved into the future potential of Fintech and Digital Payments, Electric Vehicles (EVs) and Battery Manufacturing, Space Technology and Satellite Services, Advanced Manufacturing and 3d Printing, and Tourism and Experience-based Services. Each of these sectors holds the promise of creating millions of high-skilled jobs, enhancing technological capabilities, and boosting India’s global competitiveness. From transforming the mobility and energy sectors to fostering advancements in space and digital technologies, these industries will play a pivotal role in shaping the future of India’s economy.
The long-term growth potential of these industries is immense as it boosts India’s economic development and at the same time, caters to the essential needs of people within the country and globally. By addressing critical issues like access to healthcare, renewable energy, efficient agriculture, and financial inclusion, these sectors will make a tangible impact on improving the quality of life for millions of people. Moreover, their global relevance—whether through exporting healthcare innovations, clean energy solutions, or high-tech manufacturing—positions India to play a leading role on the world stage.
With government initiatives, private sector investments, and a growing talent pool, these emerging industries are set to generate significant economic activity. The creation of jobs across various skill levels will not only reduce unemployment but also create opportunities for upskilling and innovation. Capitalising on these emerging industries, India can ensure a bright future for its demographic dividend while exerting significant global influence in the decades to come.
