Fastest Growing Sectors In India In 2025 - Top 10 Picks

In today's dynamic and ever-changing investment landscape, it is crucial to identify the growing sectors in India that offer significant growth potential. Understanding market trends and analysing key statistics can help investors make informed decisions and capitalise on promising opportunities. It is essential that investors keep optimising their investment strategies. We are in 2025, and it is essential to know which are the fastest-growing industries in India in 2025, so that we can plan our investments accordingly.

The top 10 growing industries in India include Electronic Vehicle (EV), Health Care and Insurance, Renewable Energy, IT, FMCG, Infrastructure, Fintech, E-Commerce, Artificial Intelligence, and Agriculture. In this article, we will explore all these booming industries in India in detail. You will get to know the expected CAGR of these industries and the industry with the highest CAGR in India.

1. Electric Vehicles (EV)

One of the fastest growing sectors in India is the electric vehicle (EV) market. The transition to electric mobility is gaining momentum globally, and India is no exception. The Indian government has set ambitious targets and implemented various incentives to promote the adoption of electric vehicles.

According to industry reports, the Indian electric vehicle market size was valued at US$ 1.45 billion in 2021, and it is projected to reach a staggering US$ 113.99 billion by 2029, exhibiting a remarkable CAGR of 66.52% during the forecast period¹. Despite the challenges posed by the COVID-19 pandemic, the Indian EV market witnessed a growth of 11.34% in 2020 compared to the previous year. According to a report published by Bain & Company, the penetration of electric vehicle in India will reach 40%+ by 2030².

The Indian electric vehicle market, one of the fastest growing businesses in India, is primarily dominated by two-wheelers, which accounted for approximately 90% of total EV sales in 2021. Three-wheelers and four-wheelers made up about 9% and 1% of sales, respectively. As one of the most exciting emerging businesses, the EV sector is poised for rapid growth, with two-wheelers expected to witness a CAGR of 67% between 2022 and 2029, three-wheelers at 64%, and four-wheelers at 63% during the same period.

Several factors contribute to the growth of the electric vehicle market in India. The government's initiatives, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and the National Electric Mobility Mission Plan (NEMMP), have significantly boosted the EV industry. 

Additionally, reduced Goods and Services Tax (GST) for electric vehicles, income tax deductions, state-level subsidies, and incentives have further encouraged consumers to adopt electric cars.

Investing in the electric vehicle (EV) industry can be highly lucrative, especially as it's considered one of the industries expected to grow in the next 10 years in India. Driven by the increasing demand for clean and sustainable transportation, the EV sector stands out as a future industry in India in 2025 and beyond. Companies engaged in electric vehicle manufacturing, battery innovation, charging infrastructure, and related services are strategically positioned to benefit from this booming market and long-term growth trajectory.

Furthermore, the government's push towards electric mobility and increasing consumer awareness of environmental issues make electric vehicles a promising sector for investment.

Key players in the Electric Vehicle (EV) market in India:

• Tata Motors
• Mahindra Electric
• Ather Energy
• Hero Electric
• Okinawa Autotech
• MG Motor India
• Hyundai Motor India
• TVS Motor Company
• Olectra Greentech
• Greaves Electric Mobility

2. Healthcare And Insurance

India's healthcare and insurance sectors have witnessed remarkable growth in recent years. The value of the Indian healthcare market was estimated at approximately USD 180 billion in FY 2023, and it is expected to reach approximately USD 320 billion by FY 2028 with a CAGR of 10%-12%. The hospital market in India is also expected to grow at a CAGR of 8.0%, reaching USD 193.59 billion by 2032 from USD 98.98 billion in 2023. Thus, healthcare and insurance are one of the high-growth industries in India with great potential for investments. Check out the list below for the top players in the healthcare market in India.

In addition, the number of health insurance policies issued has been on the rise. From 48.9 million policies issued in FY20, the number increased to 60.7 million in FY21. This surge in policy issuance reflects the growing awareness and demand for health insurance among the Indian population. 

As the healthcare and insurance sectors expand, they present attractive investment opportunities for those seeking long-term growth prospects.

Key players in the healthcare market in India:

• Apollo Hospitals
• Fortis Healthcare
• Max Healthcare
• Manipal Hospitals
• Dr. Lal Path Labs
• Narayana Health
• Medanta
• Artemis Health Institute
• Cloudnine Hospitals
• Aster DM Healthcare

3. Renewable Energy

The renewable energy sector is growing rapidly in India, with the country ranking 4th globally. As of July 2024, India’s installed renewable energy capacity exceeds 205.38 GW. This capacity includes various segments such as solar, hydro, biomass and wind energy, making renewable energy one of the emerging sectors of the Indian economy.

Solar energy has seen remarkable growth, with installed capacity reaching 87.2 GW, a thirtyfold increase over the last nine years. India also ranks 4th globally in wind energy, with an installed capacity of 47.07 GW³.

The Indian government has played a pivotal role in achieving this growth by introducing several initiatives to support renewable energy, including the Production-Linked Incentive (PLI) Scheme for high-efficiency solar PV modules and the National Green Hydrogen Mission.

The impressive growth of the renewable energy sector has made it one of the top choices for investors. It is expected to attract over $250 billion in investments, including $15.5 billion for solar PV projects and $2.7 billion for battery manufacturing. 

India recorded a notable 9.83% growth rate in renewable energy additions in 2022 and aims to achieve 500 GW of non-fossil fuel-based energy by 2030. Policy support also includes allowing up to 100% Foreign Direct Investment (FDI) in renewable energy generation and distribution projects through the automatic route⁴.

The renewable energy sector in India offers immense potential for growth and investment. As the country aims to reduce its dependence on fossil fuels and embrace sustainable energy sources, opportunities for solar, wind, and other renewable energy projects are expected to increase. 

With favourable government policies and incentives, investing in the renewable energy sector can yield attractive returns while contributing to a greener and more sustainable future.

Key players in the energy sector in India:

• Adani Green energy
• Tata Power Solar
• ReNew Power
• Greenko Group
• Azure Power
• Suzlon Energy
• NTPC Renewable Energy Ltd.
• Acme Solar Holdings
• Hero Future Engeries
• Avaada Energy

4. Information Technology (IT)

The information technology (IT) sector is one of the key high-growth industries in India and plays an important role in the development of the Indian economy. The overall contribution of the IT sector to the GDP is 7.5%. In FY 2023, the IT and Business Process Management (IT-BPM) industry generated approximately $245 billion in revenue. A significant part of the industry’s revenue comes from exports, with IT services and software exports reaching an estimated $194 billion in FY 2023. Not only this, the sector is one of the biggest employers in India as it gives job opportunities to approximately 5.4 million Indians⁵. The government of India has also taken different initiatives to boost the growth of IT industry. For example, Digital India is a big initiative that has helped the sector. 

The IT industry's resilience and adaptability make it an attractive sector for investment. India's skilled workforce, technological advancements, and outsourcing capabilities have positioned it as a global IT hub. 

The rise of digital transformation, cloud computing, artificial intelligence, and other emerging technologies further enhances the growth potential of the Indian IT industry. As organisations worldwide continue to invest in technology solutions and digital infrastructure, the demand for IT services is expected to remain strong.

Investing in the Indian IT industry can provide long-term growth and profitability opportunities. Companies involved in software development, IT consulting, cybersecurity, and digital transformation are well-positioned to benefit from the increasing reliance on technology across various sectors. 

Furthermore, the government's initiatives to promote digitalisation and the adoption of emerging technologies create a favourable environment for IT investments.

Key players in the information technology (IT) sector in India:

• Tata Consultancy Services (TCS)
• Infosys
• HCL Technologies
• Wipro
• Tech Mahindra
• L&T Infotech (LTMindtree)
• Oracle Financial Services Software Ltd.
• Persistent Systems
• Mphasis
• KPIT Technologies

5. Fast-Moving Consumer Goods (FMCG)

India's fast-moving consumer goods (FMCG) sector has been experiencing steady growth and is one of the booming sectors in India in 2025. According to IBEF, the Indian FMCG market is projected to reach US$ 220 billion by 2025, with a CAGR of 9.4% during 2020-2025. 

The rural FMCG market is also poised for substantial growth, estimated to reach US$ 100 billion by 2025, with a CAGR of 10.6% during 2019-2025. The online FMCG market is also expected to expand rapidly, reaching US$ 18 billion by 2023, with a CAGR of 31% during 2018-2023.

Several factors contribute to the growth of the FMCG sector in India. The rising disposable income, urbanisation, changing consumer preferences, and the increasing penetration of e-commerce platforms have fueled the demand for FMCG products. Furthermore, the FMCG industry has shown resilience during uncertain times, making it an attractive investment option.

Investing in established FMCG companies or exploring opportunities in niche segments can allow investors to benefit from the growing consumer market in India. Companies focusing on innovation, distribution efficiency, and sustainability will likely excel in this competitive sector.

Key players in the FMCG sector in India:

• Hindustan Unilever Limited (HUL)
• ITC Limited
• Nestlé India
• Britannia Industries
• Godrej Consumer Products Limited
• Dabur India
• Marico Limited
• Tata Consumer Products Limited
• Colgate-Palmolive India
• Procter & Gamble Hygiene and Health Care

6. Infrastructure

The Indian government has taken different initiatives to boost the development of the infrastructure sector in India. National Infrastructure Pipeline (NIP) is one such initiative that aims to invest $1.4 trillion in infrastructure projects by 2025. 

Similarly, Gati Shakti is also a multi-modal connectivity master plan which aims to invest $1.3 trillion by 2025⁶. Smart Cities Mission and Housing for All are also big projects announced by the government.

These initiatives have made India’s infrastructure sector a lucrative opportunity for investors. Both domestic as well as international investors are interested in investing in this sector. For example, Saudi Arabia has plans to invest approximately $100 billion in India, which will go into the energy and infrastructure industries.

Infrastructure development is crucial in supporting economic growth and improving the quality of life. The Indian government's focus on initiatives like Smart Cities, affordable housing, renewable energy infrastructure, and transportation networks opens up opportunities for investment in various sub-sectors. Projects related to roads, highways, airports, railways, power generation, and urban infrastructure are among the areas that offer potential returns for investors.

Infrastructure investment can provide long-term, stable returns as the demand for improved infrastructure facilities rises. However, it's important to note that infrastructure projects often involve long gestation periods and require careful evaluation of risks and regulatory factors. Considering the efforts that government and private players are making, it can be said that infrastructure is one of the best growth sectors for the next 10 years in India.

Key players in the Infrastructure sector in India:

• Larsen & Toubro (L&T)
• tata Projects Ltd.
• Hindustan Construction Company (HCC)
• Simplex Infrastructures Ltd
• Jaiprakash Associates Ltd.
• GMR Infrastructure
• Adani Group
• IRB Infrastructure Developers Ltd.
• Shapoorji Pallonji Group
• Reliance Infrastructure

7. Financial Technology (FinTech)

India's FinTech sector has experienced rapid expansion, driven by increased smartphone penetration, a young tech-savvy population, and supportive government policies. The adoption of digital payments, lending platforms, and insurtech solutions has transformed the financial landscape. 

The Unified Payments Interface (UPI), for instance, has become a dominant force in digital transactions, processing billions of transactions monthly. The FinTech market in India is projected to reach $150 billion by 2025, offering lucrative opportunities for investors and entrepreneurs.

8. E-Commerce

The e-commerce sector in India has seen exponential growth, propelled by increasing internet penetration, a growing middle class, and the convenience of online shopping. 

The market is expected to surpass $200 billion by 2026, with a compound annual growth rate (CAGR) of 19%. The COVID-19 pandemic further accelerated the shift towards online retail, making e-commerce a vital component of India's retail industry.

Key Players in India's E-Commerce Sector:

• Flipkart – One of India's largest e-commerce platforms.
• Amazon India – The Indian subsidiary of the global e-commerce giant.
• Myntra – A major fashion and lifestyle e-commerce platform.
• Snapdeal – An online marketplace offering a wide range of products.
• Nykaa – A leading beauty and wellness e-commerce company.

9. Artificial Intelligence (AI) and Machine Learning (ML)

India is emerging as a significant player in the global AI landscape. With a robust IT industry and a vast pool of skilled professionals, the country is well-positioned to leverage AI and ML technologies. The AI services market in India is projected to reach $7.8 billion by 2025, with applications spanning healthcare, agriculture, finance, and more. Government initiatives like the "IndiaAI Mission" aim to foster innovation and position India as a global AI hub.

Key Players in India's AI and ML Sector:

• Tata Consultancy Services (TCS) – Investing heavily in AI research and solutions.
• Infosys – Developing AI-driven services and platforms.
• Wipro – Offering AI and automation solutions across industries.
• HCL Technologies – Focusing on AI-powered digital transformation.
• Tech Mahindra – Implementing AI in various service offerings.

10. Agriculture And Agritech

Agriculture has always been a backbone of India's economy, contributing around 18% to the GDP and employing over 40% of the workforce. However, the sector is undergoing a massive transformation, thanks to the rise of agritech—a blend of technology and farming. From smart irrigation systems to AI-driven crop monitoring, agritech startups are revolutionizing the way food is produced, stored, and distributed.

The Indian agritech market is projected to reach $24 billion by 2025, with major growth in areas like precision farming, vertical farming, AI-driven analytics, and supply chain innovations. Government initiatives like PM-KISAN, eNAM (Electronic National Agriculture Market), and the Agri Infra Fund are further fueling growth in this sector.

Conclusion

The healthcare and insurance, renewable energy, IT, FMCG, infrastructure, and electric vehicle industries are few of the best sectors to invest in next 10 years. These industries are likely to offer substantial growth potential, driven by favourable market conditions, government initiatives, and changing consumer preferences. 

However, investors must conduct thorough research, analyse market trends, and consider their risk tolerance before making investment decisions. You must be wondering how you can capitalise on the growth of such booming industries. Get exposure to high-growth sectors by investing in alternative investments via Grip Invest. 

Frequently Asked Questions On Fastest Growing Sectors In India

1. Can I invest in Indian sectors from other countries?
You can invest in Indian sectors from a foreign country by using FPI. It allows you to buy shares of the Indian companies listed on the stock exchange. Depending on the investment type and amount, some sectors require you to get approval from the government.

2. What is the difference between GDP and investment?
GDP measures the country’s economic activity. However, investment is a part of GDP that measures the overall spending on productive assets.

3. What is the investment to GDP ratio in India?
As per the CEIC data, investments accounted for about 34.7% of GDP in September 2024.

4. In which sectors is FDI not allowed in India?
FDI is generally not approved in sectors which are speculative or pose any potential risks to the Indian economy. These sectors include gambling, lotteries, chit funds etc.

5. How to Invest in the Indian EV Market?
You can invest in the EV market via stocks, mutual funds and ETFs, corporate bonds and debt funds or directly investing in startups.

6. Which stock will boom in 2025 in India?

India is a growing economy, and there are different sectors which are growing at a high CAGR, such as Electronic Vehicle (EV), Infrastructure, Renewable Energy, Banking, etc. Hence, you can choose stocks according to your risk appetite and financial goals. It is always recommended to diversify your portfolio with stocks from different growing sectors and fixed income options. It will help you to protect your portfolio from market fluctuations.

7. Which company will grow faster in India?

It cannot be a one or two names. India is one of the leading economies of the world, and it has experienced high growth and demand for several sectors. Hence, many companies from different sectors can grow faster in 2025. It is up to the investor's risk profile and financial goals to select the company from an industry where he/she want to invest. 

References:

1. Fortune Business Insights <https://bit.ly/3AxW5We>
2. Bain & Company, Accessed from: https://www.bain.com/insights/india-electric-vehicle-report-2023/
3. Invest India, Accessed from: https://www.investindia.gov.in/sector/renewable-energy
4. India Brand Equity Foundation (IBEP), Accessed from: https://www.ibef.org/industry/renewable-energy
5. Statista, Accessed from: https://www.statista.com/topics/2256/it-industry-in-india/#topicOverview
6. India Brand Equity Foundation (IBEP)Accessed from: https://www.ibef.org/industry/infrastructure-sector-india/infographic 

Want to stay at the top of your finances? 

Join the community of 4 lakh+ investors and learn more about Grip Invest, the latest financial knick-knacks and shenanigans that take place in the world of investing.

Happy Investing!

Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in

Registered Address - 106, II F, New Asiatic Building, H Block, Connaught Place, New Delhi 110001