6 Sectors in India that are Likely To Perform Well in Future (2023)

According to the Asian Development Bank, the Indian economy is expected to grow by 7.5% in FY2022 and approximately by 8% in FY2023, endorsed by growing public investment in infrastructure and a pickup in private sector investment as well. Investors, motivated by the results of their investments in the last fiscal year of 2021, are prepared to devote a larger percentage of their savings to capital instruments in 2022 and are also motivated to invest in the growing industries in India.

Numerous experts speculate that by the end of the fiscal year 2022, the Indian Stock Market will also have progressed and expanded to being the fifth largest in the world, in an account of the highest market capitalization. Undoubtedly, the market will expand, with various stepping elements such as government initiatives, foreign relations, market dynamics, and so on supporting this expansion.

Read further to know more about which sector will grow in future in India and which sectors in India will flourish even more in the investing game, in the near future.

List of the Top Sectors in India that are Most Likely to Provide Excellent Returns-

1. Healthcare and Insurance Sector

In respect of revenue and employment, Healthcare is emerging as one of the most important sectors in India. An ageing population, a rising middle class, a soaring percentage of lifestyle diseases, enhanced concern for public and private partnerships, ramped up adoption and implementation of digital developments in technology, along with telemedicine, as well as growing investor interest and FDI inflows considerably over the past two decades, are all cruising the growth and flourishment of the Indian Healthcare Sector.

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Hospitals, Pharmaceuticals, Diagnostics, Medical Equipment and Supplies, and Medical Insurance are the five components of the healthcare and insurance sector, according to the government. In FY2020, the average percentage of insurance premium was 3.76%, life insurance premium was 2.82%, and non-life insurance premium was 0.94%; in FY2021, the percentages rose to 4.2% for insurance premium, 3.2% for life insurance premium, and 1% for non-life insurance premium.

Since 2016, India’s healthcare industry has been enlarging at a Compound Annual Growth Rate (CAGR) of around 22%, implying that India was doing well even before the pandemic and during and after the pandemic the statistics shot through the roof. India’s healthcare industry is expected to grow at a 39% CAGR to $372 billion by the end of 2022, thanks to the country’s growing middle-class population, particularly among the younger generation, and rising financial literacy and awareness. According to the government’s FY 2021-22 budget, the government intends to amend the previous Insurance Act of 1938 to raise the permissible FDI limit from 47% to 74% as well.

Following are some of the companies worth considering in this sector:

  1. Apollo Hospitals
  2. Abbott India
  3. Fizer
  4. Divi’s Laboratories
  5. HDFC Life Insurance

2.Renewable Energy Sector

We are all aware that environmental conditions are deteriorating, and as a result, under the Paris Agreement, every country is under enormous international pressure to reduce carbon emissions. Renewable energy has emerged as a very promising sector for investors. Sales of renewable energy equipment such as solar panels are at an all-time high, and renewable electricity is becoming increasingly affordable. By the end of 2022, India wants to have 175 gigawatts of renewable energy installed.

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The Ministry of Power has created the Renewable Energy Investment Promotion and Felicitation Board (REIPFB) to provide one-stop assistance to industry and investors for project development and new investment in India’s renewable energy sector. In addition, over $79 billion has been invested in renewable energy in India over the last seven years, and India’s installed renewable energy capacity has increased by over two-and-a-half times in that time, to over 141 gigawatts. Investment in India’s renewable energy sector reached $6.6 billion between April and July 2021, breaking the previous record of $6.4 billion set in FY2020-21.

Following are some of the companies worth considering in this sector in India:

  1. Reliance Power Industries
  2. Indian Energy Exchange
  3. Indraprastha Gas Ltd.
  4. Borosil Renewables
  5. Siemens

3. IT Sector

The IT Tech industry has exploded in the last two years, whether it’s in the fields of Artificial Intelligence, Data Analytics, Data Science, or Big Data. The IT industry has grown at such a breakneck pace and scale that it almost seems unreal. Around 33 Indian IT start-ups have achieved the “Unicorn” status, meaning their valuation has surpassed $1 billion. In the last two years, the Nifty Index of the IT Sector has returned a staggering 132%. With approximately 560 million internet users, India is now the second-largest online market after China which makes it clear that India is absolutely booming in this sector.

Following are some of the companies worth considering in this sector:

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  1. Affle India
  2. TCS (Tata Consultancy Services)
  3. Info Edge
  4. Honeywell Automation

4.Real Estate Sector

The Indian property market is trending in the right direction, and it is expected to pick up steam in the upcoming months. With strong end-user consumption and calm market conditions, the average quarterly sales volume is expected to exceed the pre-COVID year’s average quarterly sales. The unravelling of events as a consequence of Omicron is a key factor in determining the dynamism of the sales following any lockdowns. In important Real Estates markets like Pune, Hyderabad, Bangalore, Ahmedabad, and Mumbai, expansion levels have already been surpassed.

Following are some of the companies worth considering in this sector:

  1. Indiabulls Real Estate
  2. Oberoi Realty

5.Fast Moving Consumer-Goods Sector (FMCG)

In India, FMCG is the most secure sector for long-term investment. The majority of the products in this industry have been in use for over a century and will continue to be used in the future as well. HUL, Dabur, Emami, ITC, Nestle, and other FMCG companies are household names in India. For a long time, the majority of people in Indian cities and towns have been using their products.

Contrary to many other industries that go through a contraction and expansion cycle, the FMCG industry’s products are always in demand. People may not buy a new car, make new loans, or avoid investing in real estate/infrastructure during a recession or economic crisis, but because FMCG products are basic necessities, their demand will not decrease as much as in other industries. Companies based on FMCG have a lot of room to grow in every area. The FMCG industry is one of the best sectors in India for long-term investment in India if you are looking for a safe industry to invest in.

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Following are some of the companies worth considering in this sector:

  1. Adani Wilmar
  2. Hindustan Unilever Ltd. (HUL)
  3. ITC Limited
  4. Nestle India
  5. Britannia Industries
  6. Marico

6. Automobile Sector

Leading global automobile players are entering India and setting up production facilities to tap one of the fastest growing economies of the world.

Also, Indian players such as Eicher Motors (Eicher Motors’ own Royal Enfield bike that has been growing in terms of sales), Maruti Suzuki India Ltd, Tata Motors Ltd, etc. are unveiling new models, facelift versions, etc. to tap the demand from the consumers.

Rising disposable income in the hands of individuals has resulted in shifting preference towards the four-wheeler segment. The growth of the automobile sector shall also translate to the growth of the automobile component sector.

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Following are some of the companies worth considering in this sector:

  1. Maruti Suzuki India Ltd
  2. Eicher Motors Ltd
  3. Automotive Axles Ltd
  4. Munjal Showa Ltd
  5. Motherson Sumi Systems Ltd
  6. Endurance Technologies Ltd
  7. Jamna Auto Industries Ltd


It makes sense for an intelligent investor to invest in India’s growing sectors for long-term investments. However, there is an important lesson to be learned here: not every growing sector will provide incredible returns. The best approach to selecting the best sectors in India for investment is to diversify. Allocate funds to various sectors that you believe will grow, reducing risk and ensuring that you do not miss out on any booming sectors.

Disclaimer: The views expressed here are that of the author and do not reflect those of Groww.


Which sector has good future in India? ›

According to Invest India, the health sector is likely to grow by 16-17% and is about to hit $372 billion by 2022. The major components of the health and insurance sector are hospitals, Diagnostics, Medical insurance, Medical equipment, Pharmaceuticals, and supplies.

Which sectors of the Indian economy will grow faster? ›

  7. TELECOM: ...
  8. RETAIL:
Jan 11, 2023

Which sector is best to invest now in India? ›

In addition to this, the Indian government's green energy push has led to the renewables industry growing at an astounding rate. Moreover, the forthcoming budget for F.Y. 2023-2024 will likely push renewables even further. This makes the energy sector one of the best sectors to invest in India right now.

Which sectors will grow in India by 2025? ›

India's chemical industry is expected to reach US$ 304 bn by 2025, clocking an annual growth rate of over 15%. This means it could contribute to over 30% of the total manufacturing GDP of US$1 tn expected by 2025.

Which sector has a future? ›

FMCG sector

Fast Moving Consumer Goods include products that will always be in demand. With the Indian economy set to grow at 7% per annum, FMCG sector is definitely here to stay and grow. The FMCG sector also has some of the largest and the most reliable names in the economy.

Which sector is best for next 10 years in India? ›

5 Future Industries in India That Have High Demand
  • Renewable energy sector in India.
  • Semiconductor sector in India.
  • ​Drone industry in India.
  • Artificial Intelligence (AI) sector in India.
  • Internet of Things (IoT) sector in India.
Oct 21, 2022

What are the top 5 industries in India? ›

Which are the major industries in the Indian Economy? Answer: The major industries in the Indian Economy are Iron & Steel, Textiles, Jute, Sugar, Cement, Paper, Petrochemical, Automobile, Information Technology (IT), and Banking & Insurance.

Which sector is more important India? ›

Primary Sector

This is where the agriculture sector comes into the picture since it is the most important and largest sector of the Indian economy.

What sectors are best for long term investment? ›

The best sector funds for long-term investing may be those that invest in the technology, health care, and consumer discretionary industries.

Which sector stock will grow in future in India? ›

List of the Top Sectors in India that are Most Likely to Provide Excellent Returns-
  • Healthcare and Insurance Sector. ...
  • Renewable Energy Sector. ...
  • IT Sector. ...
  • Real Estate Sector. ...
  • Fast Moving Consumer-Goods Sector (FMCG) ...
  • Automobile Sector.
May 19, 2022

Which industry will grow in next 10 years? ›

5G Security

A growing need for robust security and privacy features will drive heightened demand in the 5G security market, which is expected to grow at a compound annual growth rate (CAGR) of 36.8% to reach $25.9 billion in 2030, according to the Mind Commerce report 5G Security Market Outlook and Forecasts 2022-2030.

Which business is best in future in India? ›

30 Best Business Ideas for India
  1. Social Impact Investment Funds. ...
  2. Cheap Home Solar Energy Setup Company. ...
  3. Community Generator/ Energy Supply Control. ...
  4. Internet infrastructure Building Company. ...
  5. India Culture E-Commerce Niche Store. ...
  6. Warehouse/ Inventory Management for E-Commerce. ...
  7. Last-Mile Delivery Solution Company.

Which is the first future industry in India 2025? ›

AHMEDABAD: The direct selling industry has the potential to grow almost nine times to touch Rs 64,500 crore by 2025 and is likely to provide self-employment to around 1.45 million people, says a report.

Which is the fastest growing industry in India 2030? ›

NEW DELHI: The Indian media and entertainment industry is among the fastest growing media industries in the world and is projected to reach $100 billion by 2030, Apurva Chandra, secretary, ministry of information and broadcasting (MIB), said on Tuesday.

Which sector will perform well in 2023? ›

A strong credit cycle, healthy margins and benign asset quality make the banking sector a prospective outperformer in 2023. The sector was hammered but has picked up pace amid tough economic conditions in the year. Several banks have already been performing well during the year.

Which sector will grow the most? ›

The 10 Global Fastest Growing Industries
  • Global Airport Operation. 16.2%
  • Global Hotels & Resorts. 11.8%
  • Global Travel Agency Services. 11.8%
  • Global Tourism. 10.8%
  • Global Airlines. 7.7%
  • Global Reinsurance Carriers. 6.8%
  • Global Commercial Aircraft Manufacturing. 6.3%
  • Global Architectural Services. 6.2%

What sectors are expected to grow? ›

2023 US sector outlook
  • Energy. Information. technology. Health care. Utilities.
  • Real estate. Materials. Industrials. Communication. services.
  • Consumer. staples. Consumer. discretionary. Financials.

What jobs will be in demand in 2030 in India? ›

4. Which new jobs will be created by 2030?
  • Organ Creator.
  • Metaverse Planner.
  • Augmented-reality Journey Builder.
  • Makeshift Structure Engineer.
  • Biofilm Installer.
  • Earthquake Forecaster.
  • Algorithm Bias Auditor.
  • Human-machine Teaming Manager.
Jan 27, 2023

What are the 8 core industries of India? ›

Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). Details of annual and monthly indices and growth rates are provided at Annex I & II respectively. 2.

What are the top 3 sectors in India? ›

Sector-wise GDP of India

The services sector accounts for 53.89% of total India's GVA of 179.15 lakh crore Indian rupees. With GVA of Rs. 46.44 lakh crore, the Industry sector contributes 25.92%. While Agriculture and allied sector share 20.19%.

What industries are strong in India? ›

  • Agriculture & Allied sector. Share of Gross Value Added by Agriculture and Allied sector to Total Economy is 18.8% in FY 2022. ...
  • Auto Components. Auto Components industry turnover to reach $200 Bn by 2026. ...
  • Automobile. ...
  • Aviation. ...
  • BFSI – Fintech & Financial Services. ...
  • Biotechnology. ...
  • Capital Goods. ...
  • Chemicals.

What are the best performing sectors last 10 years? ›

The best performing Sector in the last 10 years is Information Technology, that granded a +18.23% annualized return. The worst is Energy, with a +4.60% annualized return in the last 10 years. The main S&P 500 Sectors can be easily replicated by ETFs.

Which sector is performing best right now? ›


What are the top 5 sectors to invest in 2023 India? ›

“With the budget coming at the beginning of 2023, the sectors that the government is looking to focus on - 1) manufacturing, 2) capital goods, 3) defence, 4) sustainability, 5) railways, 6) public sector banks are already seeing fresh investments,” says Sonam Srivastava, Founder at Wright Research.

Which sectors to focus in 2023 in India? ›

  • Capex driven sector – Manufacturing. The priority of the government is creating jobs and hence more sops towards the manufacturing sector won't be surprising. ...
  • Upskilling. ...
  • Expansion of PLI. ...
  • Rural Economy.
Jan 23, 2023

What is the future of India in 2030? ›

India may become the third largest economy by 2030, overtaking Japan and Germany. S&P's forecast is based on the projection that India's annual nominal gross domestic product growth will average 6.3% through 2030.

Which business will grow in India? ›

Numerous sectors have grown quickly as a result of the modern lifestyle, quick urbanization, communication methods, and eating habits.
  • Food Industry. India is an agricultural nation. ...
  • Healthcare Sector. India has a sizable pharmaceutical and healthcare business. ...
  • FMCG Sector. ...
  • Automobile Sector. ...
  • Finance Sector. ...
  • IT Sector.

What are the top 10 most profitable businesses in India? ›

Contents show
  • 1.1 Interior Design and Decoration.
  • 1.2 Pharmaceutical Businesses.
  • 1.3 Organic Farming.
  • 1.4 Labour Contractor.
  • 1.5 Cloud Kitchen.
  • 1.6 Fashion Accessories.
  • 1.7 Photography.
  • 1.8 Exclusive Plant Nurseries.

What businesses do well in India? ›

Top 10 Best and the Most Profitable Businesses in India
  • Food and Beverage Business- A Business Related to Hospitality Industry. ...
  • Organic Farming. ...
  • Travel Agency or Business related to Tourism Industry. ...
  • Pharmaceutical Business. ...
  • Website Designing- A Living Dream for all the Tech Enthusiasts. ...
  • Real Estate Business.
6 days ago

What is the future of India in next 10 years? ›

India is on track to become the world's third largest economy by 2027, surpassing Japan and Germany, and have the third largest stock market by 2030, thanks to global trends and key investments the country has made in technology and energy.

What industries will be big in 2030? ›

Satellite broadband Internet. The Industrial Internet and human-robot collaboration in intelligent manufacturing. A computer power network oriented to machine cognition. Cognitive networks, with huge advances in intelligence.

Which industries will grow the most in the next 5 years? ›

The world is changing rapidly, and with it, the industries that drive the global economy.
The Top 5 Fastest Growing Industries in 2023
  1. Shipping and delivery services. ...
  2. The healthcare industry. ...
  3. Travel and food industries. ...
  4. Online retail. ...
  5. The AI revolution.
Jan 23, 2023

What will be India's future? ›

October 15, 2022 India is poised to become a powerful economic growth engine: it has one of the fastest-growing economies in the world, the third-largest start-up ecosystem, and tech services, digital, and manufacturing sectors on track to become global powerhouses.

What will be the 5 fastest growing industries between now and 2029? ›

5 out of 20 fastest-growing industries from 2019 to 2029 are in healthcare and social assistance
IndustryAnnual rate of changeNet change
Home health care services2.6456,000
Outpatient care centers2.6276,600
Other personal services2.497,100
Computer systems design and related services2.3574,500
37 more rows
Sep 4, 2020

What is India's future economy? ›

Current Forecasts About India's GDP Growth Rate:

The United Nations Conference on Trade and Development (UNCTAD) expects India's economy to grow 5.7% in 2022 and 4.7% in 2023.

Which sector is growing fast in India in next 5 years? ›

According to Invest India, the Indian healthcare industry is projected to reach $372 billion by 2022. In addition, India's hospital sector contributes 80% of the healthcare industry and is projected to increase by 16-17% to $132.84 billion by 2022. It is, without a doubt, one of the fastest-growing sectors in India.

What will be the best industry in 2025? ›

The tech industry, including Google, Apple, Microsoft, and others, is home to some of the most coveted employers on the planet. As you may have already heard, the tech sector is experiencing tremendous growth. Hence, the tech industry has a bright future.

What will be the economy of India in 2025? ›

Economic Survey envisages Indian economy to grow at 6.5 % in 2023-24 fiscal; CEA says India to be 5 trillion dollar economy by 2025-26.


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