List of Industries in India , Major Industries in India

List of Industries in India

Here we have explained all the major industries in India and their unique contribution to Indian economic growth. Let us understand one by one of all top industries of India along with the market opportunities, transformation and innovation in the industry, challenges, investment, initiatives and market dynamics.

1. FMCG:

This sector is growing and offering a great opportunity in India, it is the 4th largest sector in India. This sector in India dealing in household and personal care products and accounts for 50% sales of fast-moving consumer goods sales in India. Behind the overall growth, the urban segment is the largest contributor that offering around 55% of the growth and on other hand, the rural and semi-urban are also growing at a rapid pace. In 2018 the revenue of the FMCG market reached to INR 3.4 lakh crore and which is expected to reach 10,370 crores in 2020 at 9%

2. Retail:

The retail industry of India is one of the fastest-growing sectors in the world and it is the 5th largest retail destination globally. The retail industry of India is expected to reach Rs 76.87 lakh crore by 2020. The retail industry is growing at a rapid pace, with development taking place in tier I, tier-II cities.

3. Roads:

Road transportation witnessed growth over the year with some improvements like road connectivity, connectivity between cities, between the villages and highways. Around 90% of India’s population uses the road network to commute. In the world, India has the 2nd largest network, covering a total of 5.89 million kilometres. 64.5% of all goods in the country uses this road network.

In April 2020, the Government planned to construct roads worth Rs 15 lakh crore in the next two years.

4. Aviation:

Civil aviation is the emerging and fastest-growing industry in India and is expected to become the 3rd largest air passenger market by 2024. The aviation market is growing so demands for planes are rising, India plans to increase the number of planes (1100) by 2017. Hence, the Indian government plans to invest 183 crores for aviation development and their navigation services most probably by 2026. The market already reached 275 crores and India’s aviation industry going to witness heavy investment of Rs 35000 crores in the next four years.

5. Banking:

Government initiative helps the banking sector to grow in India. India’s banking sector is well regulated and capitalised as per RBI. India’s economic condition is far better and superior to any nation in the world. With government efforts, the banking sector witnessed various banking innovative models like online payment systems, wallet transaction, recently launched different types of Apps like BHIM that helps the banking sector to engage their subscriber through online payment systems ad more. Baking is the largest sector in financial services covering 65% of the market mix.

6. Cement:

India’s cement industry is playing an important and vital role in bringing up the Indian economy because of so many reasons firstly, India is the second-largest producer in the world. Secondly, this market is growing at the same pace every year because the construction and infrastructure industries are growing and are expected to largely benefit from it. There are so many cement companies in India but the top 20 companies producing the material and dominated the market. The cement market reached 329 million tonnes in FY 2020 and it is forecasted to reach 381 million tonnes by FY22. The cement production capacity is calculated and to touch 550 million tonnes by 2020.

7. Healthcare:

The health insurance sector in India is gaining pace. Gross direct premium income grew 17.16% year over year to Rs 51,637.84 crore. The health care system is one of the largest sectors in India in terms of generating revenue and providing maximum job opportunities. This sector comprises health insurance, medical services, telemedicine, medical devices, clinical trials, and medical equipment. India ranks 145 among the 195 countries. India’s health care market is expected to reach Rs 8.6 trillion by 2022. As per the Department for Promotion of Industry and Internal Trade (DPIIT) data, the FDI worth Rs 6.72 billion US dollars attracted by hospitals and diagnostic centres between Apr 2000 to Mar 2020.

8. E-Commerce:

Penetration of smartphones in the market propelling the e-commerce market. Most of the top 20 smartphones are imported and shipment of smartphones in India has increased by 8% year-over-year to reach 152.5 million units in 2019. And internet penetration has also been grown from 4% to 52.08% in 2019. India has the largest internet users in the world and is expected to increase from 687.62 million in 2019 to 829 million by 2021.

9. Ports:

India is the 16th largest maritime country in the world with a coastline of about 7,517 km and has 12 major and 205 minor ports. India is planning to develop new mega ports under the National Perspective Plan for Sagarmala. According to the Ministry of Shipping around 95% of trading by volume is done through maritime transport and 70% by value. The Indian ports and shipping industry plays an important role in the Indian economy. The total traffic handled was 704.63 MT in 2019-20, showing an overall growth of .82% per cent from the previous year.

10. Power:

India is the 3rd largest electricity producer in the world as per world energy statistics. India will witness a huge energy investment of around a 100billion US dollars by 2024. India ranked 6th in the list of countries, planning investment in clean energy by allotting 90 billion US dollars in between 2010-2019. Total inflow in this sector reached 14.9billion US dollars from Apr 2000 to Mar 2020.

11. Insurance:

There are a total of 57 insurance companies in India, out of which 33 are nonlife insurance and 24 are life insurance companies. In India, the overall market size of the insurance is anticipated to be 280 billion US dollars in 2020. Gross premium collection by life insurance companies in India tremendously increased from Rs 2.56 trillion in FY 2012 to Rs 7.31 trillion in FY 2020. The overall penetration of insurance in India is low, it was 2.71% in 2001 and reached 3.69% in 2017. In the life insurance segment, private players dominated the market and had a market share of 31.3% in FY20.

12. IT & ITES:

IT&ITES sector in India reached 177 billion US dollars in 2019 and is expected to grow and will reach 359 billion US dollars by 2025. India is the leading sourcing destination in the world, sector continuously generating revenue and offering employment. India’s IT sector attracted investment from many global companies. Between April 2000 to Mar 2020, the software and hardware sector attracted an FDI inflow worth 44.91billion US dollars. As per the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), this sector ranked 2nd in FDI inflow. TCS, Wipro, Tech Mahindra and Infosys are the top Indian IT firms who are managing IT related and technologies related services in India.

13. Steel:

India was the second-largest steel producer in the world in 2019 with production standing at 111.2 MT. The steel sector of India is growing at the same pace and this sector has been driven by the availability of different types of raw materials such as iron ore and low labour cost. Steel sector. As per ISA (Indian Steel Association), demand is calculated to grow 7% in FY 2021.

14. Services:

India’s services sector covers a wide variety of small and intermediate segments such as business, social and personal services, transport services, trade, hotel and restaurants, storage and communication, financing, insurance, real estate, community, and services associated with construction. This sector of India is vast and playing a vital role in Indian economic growth and also captivated significant foreign investment. As per the Department for Promotion of Industry and Internal Trade (DPIIT), as of March 2020, 28,979 startups were acknowledged.

15. Textiles:

india’s textile industry contributed 2% to the GDP of India and providing job opportunities to more than 45 million workers in FY 2019 out of which 35.22 lakh handloom workers across the country. This is the oldest industry in India.

This sector witnessed heavy investment and captivated the FDI worth 3.44 billion US dollars in between April 2000 to March 2020. With the help of the Indian government, the various policy has been reformed and allowed the 100% FDI through the automatic route. As per the reports, exports of textiles are expected to reach 82 billion US dollars from India by 2021.

16. Real Estate:

In 2019, the Real estate sector witnessed a rise of 170 per cent annually attracting 1 billion US dollars. This sector comprising four other sub-sector such as commercial, hospitality, retail and housing. The growth of the real estate sector is directly proportional to the growth in the corporate environment, demand for housing, demand of office rent space and semi-urban accommodations. Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun are the preferred destination for property investment by the NRI’s.

In 2019, this market generated a revenue of Rs 12000 crore and is expected to grow to Rs 65000 crore by 2024.

In 2019, this sector attracted an investment of Rs 43,780 crore, the retail segment attracted a PE investment of 1 billion US dollars. Real estate attracted 14 billion US dollars between 2015 to 2019 from foreign Private Equity.

17. Automobiles:

India is the fourth largest market in the world and is expected to be in the top 3 by upcoming years. In 2019, India was the 4th largest manufacturer of cars and 7th largest manufacturer of commercial vehicles in the world. As per data released by the Department for Promotion of Industry and Internal Trade, the automobiles sector attracted FDI worth Rs 24.21 Billion US dollars during Apr 2000 – Mar 2020.

By 2026, the automotive industry including the manufacturing of auto parts as well is expected to touch 16 to 18 trillion US dollars. The Indian government set up the National Automotive Testing and R&D Infrastructure Project (NATRiP), the government aim to develop India as a global manufacturer and R& D centre.

Under the FAME scheme, the Indian government and the Ministry of Heavy Industries have shortlisted 11 cities for the introduction of electric vehicles only in their public transport system.

18. Oil and Gas:

India is the 2nd largest oil refiner in Asia with a refining capacity of 249.4 million tonnes as of Mar 2020. The oil and gas sector is playing an important role in Indian economic growth and this growth is closely related to its energy demand and supply, therefore, the need for oil and gas is tending to grow, thereby making this sector advantageous for investment. The government allowed 100% FDI in many segments of the sector including natural gas, petroleum products. Attracted both local and foreign investment.

After Japan, China, South Korea, India is the 4th largest LNG (Liquefied Natural Gas) importer.

The natural gas sector attracted FDI worth 7.82 billion US dollars between April 2000 and March 2020 as per data released by the Department for Promotion of Industry and Internal Trade Policy (DPIIT).

19. Manufacturing:

The manufacturing sector of India has been emerging and making its position on the world map. After the induction of the Make in India program launched by the Prime Minister of India, Mr Narendra Modi, giving India an edge and making a manufacturing hub along with giving global recognition to the Indian economy, by 2022, the Indian government planning to create 100 million new jobs in the manufacturing sector.

The manufacturing condition in India is positive, already so many branded companies established their manufacturing units and other companies are planning to set up their plants. India’s manufacturing sector is an attractive hub for foreign investments.

20. Infrastructure:

The infrastructure sector is an important factor behind the growth of the Indian economy and the development of the country. As per the data, by 2022, India is expected to become the 3rd largest construction market.

In 2018, India ranked 44 out of 167 countries in the World Bank’s LPI and in 2019, India ranked 2nd as per the Agility Emerging Markets Logistics Index.

According to the Department for Promotion of Industry and Internal Trade, Foreign Direct Investment (FDI) in the construction development sector reached 25.66 billion US dollars from April 2000 to March 2020.

India’s logistics sector has been growing at a compound annual growth rate of 10.5% annually and may be expected to touch 215 billion US dollars in 2020

21. Auto Components:

The Indian auto components industry witnessed healthy growth over the last few years. The auto components sector expanded by a compound annual growth rate of 6 per cent from FY16 to FY 20 and touched 49.3 billion US dollars in FY 20.

The auto-components industry is 2.3 per cent of India’s Gross Domestic Product (GDP ). This sector offered huge employment of around 1.5 million workers directly or indirectly. This industry is growing and increasing year over year and attracted FDI of 24.21 billion US dollar as per the data released by the Department for Promotion of Industry and Internal Trade during the period Apr 2000–Mar 2020, this is because India is the preferred destination for investments.

As per ACMA prediction, by 2026, auto component export from India is expected to touch 80 billion US dollars.

22. Pharmaceutical:

India pharma market is the largest supplier of generic drugs globally, 40% of generic demand in the US and supply 25% of all medicine to the UK. Currently, 80% of the antiretroviral drugs used globally are supplied by Indian pharma firms to combat AIDS and other syndromes disease.

The Indian pharmaceutical sector is rapidly growing and expected to touch 100 billion US dollars and on the other hand, the medical device market is nearly to touch 25 billion US dollars by 2025.

There is 9.9% of growth year-over-year, industry total revenue was Rs 129,015 crore in 2018 and total market turnover reached Rs 1.4 lakh crore in 2019.

23. Renewable Energy:

Around 49% of the total electricity will be generated by renewable energy by 2040.
By 2030, renewable energy will account for 55% of the total installed power capacity.
This sector will attract an investment of 80 billion US dollars in the upcoming years.
The Indian government will set up around 5,000 compressed biogas plants across the country by 2023.
Northern India is expected to become the renewable energy hub in India with a potential capacity of 363 GW.

24. Consumer Durables:

Indian consumer durables are categorised into the urban and rural markets and captivating marketers from across the globe.
The consumer durable market attracted significant investment over the year. The S&P BSE consumer durables index rose 6.8% in Jan 2020 and achieved 32.1% in the last year.
Indian ACE ( appliance and consumer electronics ) market extended and reached Rs 76,400 crore in 2019.
The electronic hardware production in 2014 in the country was Rs 1.90 trillion and increased to Rs 4.58 trillion in FY 2019.
Smartphone shipment in India increased by 8% year-over-year and reached 152.5 million units in 2019, Hence, it is the preferred destination for the smartphone market, it is the market of top 20 smartphones as of now.
Indian appliance and consumer electronics is expected to increase and will achieve Rs 3.15 trillion by 2022.
In 2019, TV shipment increased by 15% annually, this is the highest ever level and reached 15 million units.

25. Telecommunication:

In terms of the number of telecommunication subscriptions, internet subscribers, app downloading globally, India ranked 2nd.
In 2019, India average data usage was 9.8GB per month and it is expected to be 18GB by 2024, this is the world’s highest data usage statistics.
India has the highest data usage per smartphone at an average of 9.8 GB per month.
India is the second-largest telecommunication market with a 1.16billion subscribers and registered sturdy growth in the last decade.
The number of internet subscribers in the country is expected to reach 829 million by 2021 and revenue from the telecom equipment will be expected to grow 26.38 billion by 2020.

26. Metals and Mining:

In 2017-18, steel production in the country was 134.6MT, which is expected to be 300MT by 2030-31, reflecting new opportunities in the sector.
The rising in infrastructure development is a critical factor for the growth of the metals and mining industry.
As per 2019 data, India was the 4th largest producer of iron ore and the 3rd largest producer of coal with 729.10 million tonnes.
Crude steel production in India was 111.2 MT in 2019 and became the second-largest producer in the world.

27. Financial Services:

By 2028, India is on the verge of being the world’s fourth-largest private wealth market.
Policy support- After the insertion of the new banking license, the FDI limit has been increased. This FDI limit was 49% and increased to 74%.
Growing Penetration- Insurance, investments and credit services are growing in semi-urban and rural areas. The wealth management segment is rising due to HNWI participation.
Transformation- This sector has been benefitted from a large cross utilisation of channels, expanding the reach of financial services.

28. Gems and Jewellery:

Demand- India is the largest consumer of gold, and in 2019, the total gold demand was 690 tonnes.
Investment- The FDI inflow in diamond and gold was 1.17 billion US dollars during the period Apr 2000 – Mar 2020.
Initiatives- Hallmarking mandatory for Gold Jewellery and Artefacts, a period of one year is provided to implement, this initiative taken by the government of India.
Opportunities- India is the hub for the diamond industry, in 2020, India exported 18.66 billion worth of polished diamond

29. Education and Training:

India has the largest young population of around 500 million and comes into the age bracket of 5-24 years, indicating the opportunity in the education sector. And the country has more than 250 million school going students that is more than any other country in the world.
The Indian government has taken various initiatives, allowed 100 FDI in the education sector and passed the National Accreditation Regulatory Authority Bill for higher education.
Venture capital investors invested1.19 billion USD against 36 deals between Jan 20-Sept 2020.
In 2020, LinkedIn and National Skill Development Corporation (NSDC) partnered and offering free access to LinkedIn Learning resources to upgrade professional skills.

30. Tourism:

The tourism and hospitality sector playing an important role to enhance the service industry, this is the emerging sector of India, in 2019, this sector created 4.2 crore jobs in the tourism sector which is 8 % of the total employment in the country. By 2028, international tourist arrival is expected to touch 305 million. According to WTTC, India is in 10th position among the 185 countries in terms of tour and tourism.

An additional fund of INR 1,854.67 crores was sanctioned for new projects under the Swadesh Darshan scheme during 2019–20.

31. Science and Technology:

India ranked 48th among the top 50 countries in the Global Innovation Index (GII) for the first time.
India ranked 50 in gross expenditure on the R&D segment, India spends only .6% of the total GDP.
The government of India and other government bodies are working on the latest AI-oriented technologies that increase the country annual growth rate by 1.3% points by 2035.
The government sanctioned Rs 6,302 crore to the Ministry of Science and Technology, which is the largest budget allocation ever. And also allocated Rs 2,787 crore to the Department of Biotechnology and Rs 5,385 crore to the Council for Scientific and Industrial Research.

32. Media and Entertainments:

The Indian advertising industry is becoming the second-largest growing advertising market after China in Asia.
The digital advertising industry in India is expected to touch the INR 50,000 crore mark by 2025, growing at a CAGR of 27.42% from 2020.
From Apr 2000 to Mar 2020, the FDI inflow reached 9.20 billion USD in the information and broadcasting sector.
The government of India has taken the initiative to increase FDI from 74% to 100%.
The government introduced NDCP (National digital communication policy)2018 for economical digital communication infrastructure and services.
Animation, visual effects, gaming is growing at a rate of 29% while the audiovisual sector is rising at a rate of 25%.
India’s music industry is at 15th position in the world and ready to enter the top 10 by 2022. In 2021, the media and entertainment industry will soon reach Rs 2.35 trillion.

33. Engineering and Capital Good:

The engineering sector witnessed astounding growth over the last few years. The growth of the engineering sector totally depends on infrastructure investment and industrial production as well as, this sector is closely associated with the infrastructure and manufacturing sector.
In 2019, the turnover was estimated at 92 million USD and predicted to reach 115.17 billion USD by 2025. Engineering exports goods is expected to touch 200 billion by 2030.
India requires Rs 235 trillion of investment in infrastructure in the upcoming years (2020-2029).

34. Agriculture:

Agriculture export is expected to reach 60 billion USD by 2022, agriculture exports were 28.93 billion USD in 2020. Country large population and rising urban and rural income is the key factor behind the Agri export growth.
The Indian government is aiming to increase the farmer’s income by 2022.
Agriculture Export Policy, 2018 was approved by the Government of India in Dec 2018 with the aim of increasing agriculture export by 100 billion USD in the next few years with the help of a stable trade policy regime.

35. Railway:

Indian railway is the backbone of the Indian economy and it is the world largest network with 13,523 passenger trains and 9,146 freight trains. The government focused on investing in railway infrastructure and planning to allow FDI in the railway to improve the infrastructure for freight and high-speed trains. various domestic and foreign companies willing to invest in Indian rail projects.

Source: ( India.gov.in, ibef.org )

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