In this post, we will rank the fastest growing industry in India based on the growth over the last few years and overall contribution to the country’s GDP.
The Covid-19 pandemic has significantly changed the face of the market and we have seen several emerging trends which have greatly affected various industries and businesses around the globe. The increasing popularity of trends like digital marketing and cryptocurrency had also shaped the industrial sector to a great extent. Owing to these trends, we are seeing a shift in the constantly evolving and fastest-growing industry in India. These industries are now shaping the future of our market and are also contributing significantly to India’s GDP.
Let’s gauge through the fastest growing industry in India and know its contribution to the country’s GDP and economy.
Table of Contents
Advanced Engineering & Manufacturing
In India, the ‘Made in India’ campaign is presently in full swing. This campaign was a major success, resulting in significant changes in India and the way things are done. The Indian government is now concentrating on one of the most important and fastest-growing industry in India i.e. engineering and manufacturing investment and innovation. They’re also committed to safeguarding their intellectual property and constructing the world’s best-in-class industrial infrastructure. Furthermore, by concentrating its efforts on creating green technology, India has grown to become one of the world’s largest automobile producers. As a result, the engineering and manufacturing industries are currently booming.
Pharmaceutical Industry
Over the next five years, the pharmaceutical industry will experience significant growth and will become the fastest-growing industry in India. For the jobless, the industry provides a large number of work prospects. It is also overgrowing, and it will continue to do so in the future.
The pharmaceutical sector is made up of businesses that sell prescription drugs and medical equipment. The industry’s primary goal is to create effective medications, pharmaceuticals, and vaccines. The pharmaceutical sector is a blessing for patients in India, where there are a big number of individuals suffering from various ailments. It identifies all of the medications that aid in quick recovery. As a result, the pharmaceutical business has a huge opportunity to grow in the next 10 years.
Digital Marketing and Social Media
India presently has more than 500 million internet users, making it the world’s second-largest country in terms of internet literacy. However, barely 19% of Indians had an internet connection just a few years ago, prompting the government to launch the ‘Digital India’ campaign. This effort implies that a significant amount of money has been invested in one of the fastest-growing industry in India, namely, the digital innovation industry, resulting in numerous job possibilities. It also implies that technology has helped them progress in other areas, such as healthcare and finance. As a result, this industry has experienced a substantial expansion in recent years.
Artificial Intelligence and Automation
More people than ever before may have AI technology installed in their homes, such as Amazon’s Alexa or Google hubs that utilise voice commands to conduct various tasks. This has opened up India and fostered the establishment of comparable local enterprises that specialise in either developing this technology, aggregating it to make it simpler to use, or even experts with the know-how to repair it. Restaurants and other companies are adopting automation as well, from ordering meals from a menu to replacing employees with trained robots. Economists predict that as this business grows, additional employment in programming, maintenance, and operations will emerge making it arguably the fastest-growing industry in India.
Energy Sector
With a population of over 1.35 billion people, India is the world’s second-largest country. This indicates that the country’s power consumption is quite high. As a result, the energy business has accelerated. Even though the country’s primary energy sources are natural gas, crude oil, and coal, the government is attempting to shift its attention to renewable energy. They want to increase renewable energy capacity by 175 GW by 2022. The growing demand for green energy as a result of the climate issue has aided India’s energy industry in moving forward and eventually becoming the fastest-growing industry in India.
Mergers & Acquisitions (M&A) & Marketing
As business survival will be the major emphasis in the present economic slowdown, marketing and management consultants will be needed to cut costs and provide strategies to survive and stay in the market. This will need the hiring of marketing and M&A advisors in large numbers. When firms make cuts, consultants will be available to assist clients in determining where the axe should be wielded and to find viable and reliable solutions for all the business problems.
According to the Ministry of Commerce and Business, India’s consulting industry is currently valued at over Rs.10000 crores, including exports and is the fastest-growing industry in India.
Telecom
The telecom narrative is just getting better and is the fastest-growing industry in India. India has about 850 million mobile phone customers, according to Zinnov estimates, with a 15% smartphone penetration rate. All of this indicates a level of penetration that is accelerating the expansion of corporate mobility in India, resulting in considerable job growth.
By 2014, the Telecom Regulatory Authority of India (TRAI) wants to double the number of broadband customers to 100 million. According to E&Y, telecom outsourcing sales are expected to expand at a CAGR of 31% to approximately $2 billion in 2012. India is now at a point in its telecom development that America was perhaps 30 years ago.
Retail
The retail industry has made headlines in recent months, with the discussion of 100 per cent FDI in single-brand retail, which is now restricted at 51 per cent. While the outcome is still up in the air, the opening up of India’s retail sector will result in a stronger, more organised economy that will help generate jobs.
Only a small portion of Indian retail is organised now. Despite this, the industry is expected to be valued at more than $400 billion in India, with domestic and multinational businesses aiming to expand across the country. Rural areas, according to industry experts, will drive the next phase of growth and will make it the fastest-growing industry in India. According to forecasts, the workforce will double by 2015, from its current level.
Media and Entertainment
In these difficult times, when people are losing employment and don’t have the time to watch TV, they will seek amusement at home, resulting in increased advertising earnings for commercial networks. Businesses such as the creation of religious texts and products, as well as religious channels, will prosper. When compared to other entertaining/commercial channels, religious stations will have a higher TRP.
The Indian M&E business is predicted to develop at a compound annual growth rate (CAGR) of 18% to reach US$ 23.81 billion by 2012, according to research issued by the Federation of Indian Chambers of Commerce and Industry (FICCI) and will be among the list of fastest-growing industry in India.
Tourism Industry
Tourists and foreigners have never been in short supply in the country since its history and culture have always drawn visitors from all over the world. The tourism sector has played a significant role in improving India’s economy, notably, in terms of the foreign cash, it brings into the nation. It also provides a significant amount of employment because of its potential and is the fastest-growing industry in India.
With a long history of providing a varied range of tourism alternatives, the country is also exploring new economic opportunities. The world has also taken notice of eco-tourism and medical tourism. The internet has made it simple to organise a trip to India and experience it.
Insurance and banking
India’s banking sector has expanded dramatically, owing to significant IT expenditures and the diversification of new service offerings. Since 2001, the banking sector index has risen at a compounded annual rate of over 10% to 12%. Over the previous three years, mutual funds in this category have returned 9 to 12 per cent. The value discovery process might result in advantages for investors as and when public sector banks are privatised.
India’s life insurance industry is ranked sixth among the world’s largest and is the fastest-growing industry in India. The industry has been expanding at a pace of more than 20% every year. The non-life insurance industry is growing at a 15% annual pace. In recent years, the insurance business has opened up to private investors, and the market is becoming more competitive as foreign firms enter. Overall, the economy’s risk management competence has strengthened.
Takeaway
Industries are the backbone of our country as they are helping in increasing the economy of India by providing a massive share of the GDP percentage. All industries mentioned above are overgrowing and are the fastest-growing industry in India, and they will, for sure going to boom in 2020-2030. These industries are shaping the future of India and also providing employment to the citizens which is a crucial contribution, especially in the post0-covid phase.
