Top 10 Growing Industries in India 2025 for Business Growth and Investment

Find out which industries in India are booming in 2025, ideal for startups and new ventures looking to grow.
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4 min read
21 August 2025

India’s economy is undergoing rapid transformation, powered by innovation, digital adoption, and supportive policy reforms. In 2025, several industries are emerging as high-growth drivers that are reshaping the nation’s development story. These sectors are creating opportunities for entrepreneurs, investors, and professionals alike.

Top 10 fastest growing sectors in India 2025

India's growth momentum is being fuelled by technology, sustainability, and large-scale reforms. Here are the top 10 fastest-growing sectors to watch in 2025:

  1. Information technology and digital services: Expansion in cloud computing, cybersecurity, SaaS, and AI solutions is positioning IT as the backbone of India’s digital-first economy.

  2. Renewable energy and green hydrogen: Driven by government commitments to net zero, solar, wind, and hydrogen-based energy are attracting record investments.

  3. Healthcare, pharmaceuticals and biotech: Rising demand for advanced healthcare, medical devices, and biotech research is boosting innovation and global partnerships.

  4. Fintech and digital payments: UPI, digital lending, and blockchain-based solutions are transforming India into one of the world’s largest fintech hubs.

  5. Electric vehicles, batteries and auto ancillaries: EV adoption, charging infrastructure, and localised battery production are accelerating the future of mobility.

  6. Electronics, semiconductors and hardware: The government’s semiconductor mission and PLI incentives are making India a global hub for electronics manufacturing.

  7. Manufacturing (PLI-led) and MSME scale-up: Incentive-backed manufacturing and MSME expansion are driving exports and domestic supply chains.

  8. E-commerce, retail and FMCG: Rising internet penetration, tier-2 and tier-3 city consumption, and direct-to-consumer brands are fuelling growth.

  9. Agriculture, agritech and food processing: Smart farming, agri-fintech, and food processing innovations are modernising India’s largest employment sector.

  10. Infrastructure, real estate and logistics: Urbanisation, smart cities, and logistics reforms are creating opportunities in construction, housing, and transport.

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1. Information Technology and Digital Services

  • Digital transformation demand: Cloud computing, cybersecurity, and AI services are driving enterprise adoption.

  • Global outsourcing hub: India remains the top choice for IT outsourcing with skilled talent and cost efficiency.

  • Startup ecosystem: Growth of SaaS and deep-tech startups is boosting innovation.

  • Government push: Initiatives like Digital India and 5G rollout are enabling wider digital adoption.

2. Renewable Energy and Green Hydrogen

  • Rising investments: India targets 500 GW renewable capacity by 2030, making solar and wind crucial growth areas.

  • Green hydrogen focus: National Hydrogen Mission is positioning India as a future exporter.

  • Policy support: Subsidies, tax benefits, and state-led projects are attracting private players.

  • Global partnerships: International collaborations are accelerating technology transfer and funding.

3. Healthcare, Pharmaceuticals and Biotech

  • Healthcare demand: Rising lifestyle diseases and growing insurance penetration are boosting sector growth.

  • Pharma leadership: India is one of the global leaders in generics, vaccines, and biosimilars.

  • Biotech innovation: Investments in genomics, clinical research, and biologics are expanding.

  • Medical infrastructure: Tier 2 and Tier 3 cities are seeing new hospitals and diagnostic centres.

4. Fintech and Digital Payments

  • UPI dominance: India’s UPI transactions are setting global benchmarks in real-time payments.

  • Digital lending: NBFCs and startups are offering instant credit access to underserved markets.

  • Wealth-tech rise: Growing demand for online investment and robo-advisory platforms.

  • Regulatory backing: RBI’s digital initiatives are boosting consumer confidence and adoption.

5. Electric Vehicles, Batteries and Auto Ancillaries

  • EV adoption: Government subsidies and falling battery costs are driving adoption.

  • Charging infrastructure: Rapid expansion of charging networks across metros and highways.

  • Battery innovation: Focus on lithium-ion alternatives and domestic manufacturing.

  • Ancillary growth: Auto component makers are benefiting from the EV ecosystem expansion.

6. Electronics, Semiconductors and Hardware

  • PLI scheme support: Government incentives are fuelling large-scale electronics manufacturing.

  • Semiconductor demand: High demand in automotive, telecom, and consumer electronics.

  • FDI inflows: Global majors are setting up units in India to diversify supply chains.

  • Export potential: India is emerging as an alternative to China and Vietnam in electronics exports.

7. Manufacturing (PLI-led) and MSME scale-up

  • Make in India boost: Strong focus on domestic production and reduced import dependency.

  • PLI-led incentives: Electronics, pharma, textiles, and automotive segments are key beneficiaries.

  • MSME backbone: Small businesses are expanding with digitalisation and easier credit access.

  • Export competitiveness: India’s global manufacturing footprint is growing steadily.

8. E-commerce, Retail and FMCG

  • Consumer demand: Rising middle-class income and urbanisation are driving e-commerce adoption.

  • Quick commerce: Rapid delivery models are reshaping consumer behaviour.

  • Omnichannel retail: Brands are blending offline and online experiences.

  • FMCG expansion: Demand for packaged foods, personal care, and household products is rising.

9. Agriculture, Agritech and Food Processing

  • Tech-driven farming: Drones, IoT, and AI are helping farmers boost productivity.

  • Agri-fintech growth: Platforms offering credit and insurance are improving farmer access to finance.

  • Food processing demand: Export opportunities in packaged food and beverages are expanding.

  • Government schemes: FPOs and agri-tech startups are receiving strong policy support.

10. Infrastructure, Real Estate and Logistics

  • Urbanisation push: Smart cities and affordable housing are expanding urban infrastructure.

  • Logistics boom: Gati Shakti and PM Gatishakti plan are improving connectivity.

  • RE growth: Commercial real estate demand is rising with office and retail expansion.

  • Private investment: Strong participation in PPP projects for highways, metro, and airports.

Comparison of top growing industries in India 2025

Here’s a comparative snapshot of the top manufacturing industries in India 2025:

 

Sector

2024 Market Size (₹ Cr.)

Growth Outlook

Role of Embedded Systems

Electronics

₹9,545,000

3x by 2026

SoCs, IoT integration

EV & Auto Components

₹4,690,000

Strong

BMS, MCUs, telematics

Pharma & Biotech

₹2,075,000 (exports)

Steady

Cold chain, diagnostics

Metals & Minerals

Rising

Moderate

Automation, monitoring

Embedded & Automation

₹371,000

0% CAGR

Cross-industry applications

Drones & UAVs

Growing (₹1,909,000 by 2030)

High Potential

Navigation, telemetry

Data Centers

₹415,000

25% CAGR

Energy, uptime management

Specialty Chemicals

Expanding

Niche

Process control systems

Medical Devices

Rising

High

Portable, real-time diagnostics

Technical Textiles

Emerging

Niche to Mainstream

Smart wearables, biosensors

 

Conclusion

India’s manufacturing landscape in 2025 reflects both strength and transformation. Established sectors like electronics, auto components, and pharma are scaling rapidly, while emerging industries such as drones, data centres, and technical textiles are opening up new opportunities. The integration of embedded systems and automation is becoming a common thread across these industries, driving efficiency, innovation, and competitiveness.

For entrepreneurs and businesses aiming to enter or expand in these high-growth sectors, securing the right financial support is crucial. Opting for a business loan can provide the necessary capital to invest in technology, infrastructure, and skilled talent, ensuring a strong foundation for growth in India’s evolving industrial economy.

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Frequently asked questions

Which is the fastest growing sector in India?

The fastest growing sector in India in 2025 is Information Technology and Digital Services, supported by AI, cloud, and cybersecurity. Renewable energy and fintech are also showing rapid expansion with strong policy and investor backing.

Which sector is in demand in the future?

Sectors like renewable energy, electric vehicles, healthcare, and agritech will remain in high demand in the coming years. These align with India’s sustainability goals and rising consumer needs.

Which sector gives more income in India?

IT services, e-commerce, and pharmaceuticals are among the highest revenue-generating sectors in India. They benefit from global demand, exports, and continuous domestic consumption.

Which sector will boom in the next 5 years?

Electric vehicles, data centres, renewable energy, and fintech are expected to boom in the next five years. Government policies, infrastructure upgrades, and digital adoption will be the key drivers of growth.

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