Fastest Growing Sectors In India In 2026 – 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 2026, and it is essential to know which are the fastest growing sectors in India in 2026, 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.

Top 10 Fastest-Growing Sectors In India In 2026: An Overview

Industry	Expected Market Size (USD)	Expected CAGR
Electric Vehicles (EV)	113.99 billion by 2029	66.52%
AI and ML	18.96 billion by 2031	32.20%
Financial Technology (Fintech)	550.21 billion by 2030	30.55%
E-Commerce	325 billion by 2030	21%
Healthcare and Insurance	320 billion by 2028	10% – 12%
Agritech	6.15 billion by 2033	10.93%
FMCG	100 billion by 2025	10.6%
Information Technology (IT)	350 billion by 2026	10%
Infrastructure	353.11 billion by 2030	9.57%
Renewable Energy	52.1 billion by 2033	8.1%

Note: The market size and CAGR for different industries are sourced from various industry reports, each covering different time periods. For complete details, please refer to the full article and review each section carefully.

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 2026 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. 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 more³. It is estimated that the market size of Machine Learning in India will reach USD 3.55 billion by 2025. It is also projected that this market will grow at a CAGR of 32.20%, reaching USD 18.96 billion by the end of 2031⁴. 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.

3. 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. This growth is expected on the grounds of funding that the fintech industry in India has received over the last 5 years. In 2021 alone, approximately USD 7 billion was invested in fintech in India⁵.

The market size of the fintech industry in India is expected to reach USD 550.21 billion by 2030 from the current market size of USD 45.09 billion in 2025. This is a growth of CAGR of 30.55% from 2025 to 2030, making the fintech industry in India a potential sector to invest in⁶.

Key players in the Fintech industry in India

• Paytm
• Mobikwik
• Policy Bazaar
• PayU
• Kissht

4. E-Commerce

E-commerce is another booming industry in India in 2026. This sector 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. It is projected that the e-commerce industry in India will reach a market size of USD 325 billion by 2030 with a CAGR of 21%, according to a report by the leading consultancy firm Deloitte⁷.

Also Read: Five Investment Options Better Than Fixed Deposits

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.

5. 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

6. Agriculture And Agritech

Agriculture has always been the 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 revolutionising the way food is produced, stored, and distributed.

Agritech is the next fastest-growing industry in India in 2026, mainly driven by the increased penetration of the internet in rural India. The digitalisation initiatives by the government and the need for greater efficiency in agriculture are the forces behind the growth in the agriculture sector. The market size of agritech was valued at USD 878.1 million in 2024, and it is expected to reach USD 6.15 billion by 2033 with a CAGR of 10.93%⁸. Government initiatives like PM-KISAN, eNAM (Electronic National Agriculture Market), and the Agri Infra Fund are further fueling growth in this sector.

7. 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 2026. According to IBEF, the Indian FMCG market is projected to reach US$ 220 billion by 2025, with a CAGR of 9.4% during 2020-2026. 

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

8. 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 Indians⁹. 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 market size of Information Technology (IT) and Business Process Management (BPM) is valued at approximately USD 227 billion, as of 2025, accounting for 7.5% of India’s GDP. The industry is projected to reach a market size of USD 350 billion in 2026 with a CAGR of 10%¹⁰. 

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

9. 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 2025¹¹. Smart Cities Mission and Housing for All are also big projects announced by the government.

With the stable government for the last 10+ years, infrastructure development has been in focus. Due to this infrastructure industry has become a cornerstone of its economic growth. 

As of 2025, the market size is estimated at USD 223.59 billion, with projections to reach USD 353.11 billion by 2030, growing at a CAGR of 9.57%¹².

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

10. 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 GW¹³.

The current market size of renewable energy in India is valued at approximately USD 23.9 billion as of 2024. It is projected that the industry will reach a market size of USD 52.1 billion by 2033, with a compound annual growth rate (CAGR) of 8.1% during this period¹⁴.

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 route¹⁵.

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

Recent Development: Sectors Set To Benefit From The India-UK Free Trade Agreement

The recent development in the world economy has impacted different sectors in India. The tariff announced by U.S. President Donald Trump was one big event that affected the stock market worldwide. However, after the tariff was paused, positive sentiments were seen in the market. Another development is the recent free trade agreement between India and the U.K. The India-UK FTA is set to bring significant benefits to different sectors in India. The objective of the agreement is to reduce the tariff and enhance access to the market. The FTA with the United Kingdom was announced on 6th May 2025. Below are the key sectors that are expected to benefit from this agreement:

1. Automotive Sector

• Import duties on British-made luxury cars will be reduced from 100% to 10%. Hence, purchasing these vehicles will be cheaper now.
• Indian auto component manufacturers will also benefit due to increased exports to the U.K. market¹⁶.

2. Textiles and Apparel

• The textile, garments and footwear industries in India will benefit from reduced tariffs and increased market access. The countries like Sri Lanka and Bangladesh were already enjoying the low tariff. Now, after the FTA, Indian companies will be able to compete with them.

3. Pharmaceuticals

• The Pharmaceutical industry in India will also benefit from the India-UK FTA, as India is a major supplier of generic medicines to the U.K. With this agreement, the regulatory approvals will become easier and smoother¹⁷.

4. Information Technology and Services

• The IT industry in India will get greater access to the U.K. market. The agreement will also smooth the movement of IT professionals between the two countries. IT services, like legal, accounting and engineering services, will be boosted.

Conclusion

The healthcare and insurance, renewable energy, IT, FMCG, infrastructure, and electric vehicle industries are few of the fastest growing sectors in India and are 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.