India is one of the fastest-growing economies in the world, and its emerging sectors are poised for significant growth in the coming years. With a large and growing population, a young and educated workforce, and a supportive government, India is an ideal destination for investors looking to capitalize on these emerging sectors.
In this article, we will take a look at some fastest growing industry in India and explore the investment opportunities they offer.
1. Semiconductors
India is emerging as a key player in the global semiconductor market. With the government’s push for ‘Make in India’ and the increasing demand for electronics, the semiconductor industry in India is poised for significant growth.
Some companies in this sector are:
- RIR Power Electronics Ltd
- Moschip Technologies Ltd
- ASM Technologies Ltd
2. Electric Vehicles (EVs)
The Indian government’s ambitious plans to make all vehicles electric by 2030 are expected to drive the growth of the EV market in India.
Some companies in this sector are:
- Bosch Ltd
- Sona BLW Precision Forgings Ltd
- Motherson Sumi Wiring Systems
3. Artificial Intelligence (AI)
India is making strides in AI, with several startups and tech giants investing heavily in AI research and development.
Some companies in this sector are:
- KPIT Technologies Ltd
- Tata Elxsi Ltd
- Persistent Systems Ltd
4. Electronics Manufacturing Services (EMS)
The ‘Make in India’ initiative has given a boost to the EMS sector in India. Several global electronics manufacturers are setting up manufacturing units in India.
Some stocks in this sector are:
- Dixon Technologies (India) Ltd
- Kaynes Technology India Ltd
- Syrma SGS Technology Ltd
5. Smart Metering
The Smart Meter National Programme (SMNP) is a government program in India that aims to upgrade the country’s 250 million conventional meters. The program has sanctioned 23 crore smart meters, and 70 lakh smart meters have been installed so far. So , the potential growth for smart metering in India is significant. The Indian smart meters market is estimated to grow at a CAGR of 8.3% during the forecast period
There are several factors driving the growth of the smart metering market in India, including:
- Government support: The Indian government is providing financial and regulatory support for the deployment of smart meters. For example, the Revamped Distribution Sector Scheme (RDSS) provides subsidies to utilities for the installation of smart meters.
- Increasing demand for energy: India’s energy demand is expected to grow significantly in the coming years. Smart meters can help to meet this demand by improving energy efficiency and reducing consumption.
- Need to reduce AT&C losses: India has high AT&C (aggregate technical and commercial) losses, which are estimated to be around 20% of total electricity generation. Smart meters can help to reduce AT&C losses by detecting and preventing power theft and tampering.
- Growing awareness of the benefits of smart meters: Consumers and utilities are becoming increasingly aware of the benefits of smart meters, such as accurate billing, real-time energy consumption data, and demand response programs.
Some companies in this sector are:
- Genus Power Infrastructures Ltd
- GMR Power & Urban Infra Ltd
- HPL Electric & Power Ltd
Drones
The Indian government has set an ambitious goal of making India a global drone hub by 2030. To achieve this goal, the government has introduced a number of supportive policies and initiatives, such as the Drone Rules, 2021, which have made it easier for businesses to use drones for a variety of applications.
The drone industry in India is expected to grow rapidly in the coming years. In India, the drone market is predicted to expand between 2023 and 2028 at a CAGR of 10.23%, according to a study by IMARC Group. By 2030, the Indian drone industry is expected to be worth $23 billion.
The growth of the drone industry in India is being driven by a number of factors, including:
- Government support: The Indian government is supportive of the drone industry and has introduced a number of supportive policies and initiatives.
- Large and growing economy: India has a large and growing economy, which is creating demand for drones in a variety of sectors.
- Young and tech-savvy population: India has a young and tech-savvy population, which is driving the adoption of drones.
- Wide range of applications: Drones can be used for a wide range of applications, including defense, agriculture, logistics, infrastructure, and disaster relief.
Some companies in this sector are:
- Zen Technologies Ltd
- Ideaforge Technology Ltd
- C.E. Info Systems Ltd
- Droneacharya Aerial Innovations Ltd
Green Hydrogen
Green hydrogen is produced using water and renewable energy, such as solar and wind power. It is a clean and sustainable fuel that can be used to decarbonize a variety of industries, including transportation, manufacturing, and power generation.
India has the potential to become a global leader in green hydrogen production and consumption. The country has abundant renewable energy resources, and the government is committed to developing a green hydrogen economy.
In Jan 2023, the government launched the National Green Hydrogen Mission, which aims to produce 5 million metric tonnes of green hydrogen per year by 2030. This would make India the world’s third-largest green hydrogen producer, behind China and the United States.
India’s commitment to clean energy and reducing carbon emissions is expected to drive the growth of the green hydrogen market.
Some companies in this sector are:
- GFL Ltd
- Reliance Industries Ltd
- Adani Enterprises Ltd
Auto Ancillaries
The auto ancillary sector in India is expected to grow significantly due to increasing automobile sales and exports.
Some companies in this sector are:
- Pricol Ltd
- Minda Corporation Ltd
- ZF Commercial Vehicle Control Systems India Ltd
Microfinance/SME/MSME
The MSME sector plays a crucial role in the Indian economy, contributing significantly to GDP growth.
Some companies in this sector are:
- Arman Financial Services Ltd
- Five-Star Business Finance Ltd
- Equitas Small Finance Bank Ltd
Wealth Management/Equities
With increasing financial literacy and growing wealth, the wealth management sector in India is expected to witness robust growth.
Some companies in this sector are:
- Central Depository Services (India) Ltd
- Computer Age Management Services Ltd
- HDFC Asset Management Company Ltd
Railway Infrastructure
The Indian Railways, being one of the largest railway networks globally, play a crucial role in India’s economic development.
Some companies in this sector are:
- Rail Vikas Nigam Ltd
- Titagarh Rail Systems Ltd
- Hitachi Energy India Ltd
Defense
The defense sector in India is expected to grow significantly due to increasing defense budgets and the government’s focus on the indigenization of defense equipment.
Some companies in this sector are:
- Hindustan Aeronautics Ltd
- Mazagon Dock Shipbuilders Ltd
- Solar Industries India Ltd
Flex Fuel (Ethanol)
With the government’s push for ethanol blending, the flex fuel sector in India is expected to witness significant growth.
Some companies in this sector are:
- Praj Industries Ltd
- Globus Spirits Ltd
- Balrampur Chini Mills Ltd
Solar Energy
India’s commitment to renewable energy and its ambitious solar energy targets are expected to drive the growth of the solar energy sector.
Some companies in this sector are:
- KPI Green Energy Ltd
- Gensol Engineering Ltd
- Tata Power Company Ltd
CDMO
The CDMO sector in India is expected to grow significantly due to increasing demand for pharmaceutical products and the country’s strong position as a global pharmaceutical manufacturing hub.
Some companies in this sector are:
- Neuland Laboratories Ltd
- Syngene International Ltd
- Suven Pharmaceuticals Ltd
Recycle
With increasing environmental concerns and government regulations, the recycling sector in India is expected to witness robust growth.
Some companies in this sector are:
- Gravita India Ltd
- Ganesha Ecosphere Ltd
- Eco Recycling Ltd
Disclaimer : The general trends and actual growth may vary based on various factors such as economic conditions, technological advancements, regulatory changes, etc. This article is for informational purposes only and is not investment advice. Consult a financial advisor before investing. Emerging sectors are risky. Past performance is not indicative of future results. Seek professional financial advice. Please note that this is not an exhaustive list and there are many other companies in each sector. NOT SEBI REGISTERED. Stocks mentioned are not investment recommendations.