India is slowly transforming into a major global economic powerhouse. We are so happy to see the hard work and clear vision paying off. Indian brains have been helping Western corporations for decades. The talents and hard work of Indian people have never been in doubt. It was the environment that wasn’t conducive for them to reach their true potential. Now, finally, the scenario is changing, and Indian top talents have more reasons to stay in their country than ever. And it really shows. In 2024, India is expected to have large economic growth of over 6%, despite the global economy slowing down.
The main associations with the Indian economy are engineers, doctors, and IT experts. You wouldn’t be wrong. These are the major fields that have paved the way for India’s economic growth and worldwide recognition. However, India is not limited to these. As a fast-changing and fast-adapting country with a young population, it is embracing new and emerging sectors well. Here are some to watch for in 2024.
Defense Sector
Even though India has historically relied on Russia as its main weapons supplier, the current complicated geopolitical situation and Russia’s internal struggles to produce modern weapons are driving India to diversify. This creates opportunities for both domestic and international defense companies to invest in India’s defense sector. With a large pool of skilled IT professionals and engineers, India is well-positioned to capitalize on their experience and knowledge, especially considering the country has already developed some weapon systems on its own, like the Arjun MBT for example.
Casino Sector
Perhaps not the first thing that comes to mind, right? Well, according to Statista, the country is experiencing increased growth in this sector. This is attributed to the increasing popularity of mobile gambling, which is in direct correlation with smartphone adoption rates and better internet connectivity, resulting in websites like Casino Days being the obvious choice for online gamblers in India. On top of that, India is experiencing a growing middle class, meaning disposable income is also increasing. This, in turn with a huge market potential, results in the casino sector becoming lucrative for both investors and operators alike.
Renewable (Green) Energy Sector
India’s commitment towards renewable energy has been showing off. The country’s vast solar and wind resources are making it an ideal destination for investment in green energy projects. According to Invest India, the country is placed in the 4th place globally in renewable energy installed capacity, and 4th in wind and solar power capacity. With a strong government framework, the renewable energy sector might become a key player in India’s economic growth beyond 2024.
E-commerce Sector
The e-commerce boom in India is showing no signs of slowing down. Similar to the casino sector, the e-commerce sector is benefiting from smartphone adoption, internet penetration, and the growing middle class. According to a report by the India Brand Equity Foundation (IBEF), the sector is expected to reach $200 billion in market size by 2026. This growth can also be attributed to increased government support and initiatives such as Digital India, which aims to transform the country into a digitally empowered society.
Electric Vehicles Sector
Regarding sales, India was the 3rd largest automotive market in the world in 2023. This largely accounts for ICE vehicles, as electric vehicle’s share was only 5%. However, the experts call it an “infection phase”. It is expected that EV sales could reach up to 40% by 2030 if the right structural changes are made on time. According to a report by BloombergNEF, India is expected to be the 4th largest EV market globally by 2040, making it an interesting sector both for professionals and investors.
Traditional Sectors Will Continue to Grow
While the emerging sectors offer promising opportunities, traditional sectors remain the core of India’s GDP. Don’t write them off yet. The technology sector, pharmaceuticals, and manufacturing industries are still expected to see growth in 2024 and beyond. These sectors have been the backbone of India’s economic development so far and will continue to contribute significantly. With a young and tech-savvy population, increasing digitization, and supportive government frameworks, the country is positioning itself as an attractive investment destination with strong economic foundations.
