Startup

Fastest Growing Industry to Invest In India by Foreigner

India is the fastest growing economy in the world. With showing 7% growth for the financial year 2022, the India’s economy has been overtaken by UK in terms of size, making it the 5^th biggest in the world. Moreover, according to the economic times, the India’s economy is expected to grow by 4.7% in FY 2023. This is because the government is encouraging investment from private players to invest in their “Make in India” initiative. Moreover, looking at the government’s initiative towards self-reliance, the government is offering various schemes to the entities. Looking at the growth of the India’s economy, foreign investors are attracted towards investing in the various sectors of the Indian market. Many think tanks have predicted that by 2025 the Indian stock market will hold the largest market capitalisation in the world compared to other nations. The present article will list down the fastest growing industry to invest in India by a foreigner.

Fastest Growing Industry in India

The fastest growing industry to invest in India by a foreigner is:

1. Information Technology Industry (IT)

One of the fastest growing industry in India is the IT industry. In recent years, the IT business in India is continuously increasing. The country has seen growth in Artificial intelligence, Data Analytics, Data Science and Big Data. The country is becoming the world’s fastest growing start-up ecosystem with 108 unicorn setups in 2022, signifying more than $ 1.2 billion. The India has the highest number of internet users as compared to the other countries. Making it the most significant online market player. The country is also investing in the field of Artificial intelligence to encourage more foreign investments in such sectors. The IT tech business is the fastest growing industry as India is willing to invest in the AI sector. For this purpose, the Indian government is offering various subsidies in this regard. The foreigners willing to invest in India can invest in the IT sector to earn consistent profits.

2. Healthcare Industry

The HealthCare sector is booming in India after the pandemic. The India offers cutting-edge technological solutions and skilled workers in the sector. The country has overcome the pandemic and proven to be a forerunner in the healthcare sector as compared to other developed countries. The healthcare sector in the country is vast, according to Invest India, the India Healthcare industry is expected to touch US $50 billion by 2025. The foreigner willing to invest in India can invest in the healthcare sector and earn reasonable amounts. The foreign entity can establish its research and development unit in India and outsource it to another world. It can offer innovative solutions to the people of the nation at a low cost. Moreover, the resources are readily and locally available, which makes the operating cost of the entity low; henceforth, it is one of the fastest growing industries in India.

3. Pharmaceutical Industry

The Indian Pharmaceutical industry plays an important role in the global pharmaceutical industry. The nation ranks 3^rd worldwide for production by volume and 14^th value. India is the biggest producer of generic medicines worldwide. It occupies a 20% share of the global supply and is the leading vaccine manufacturer in the world. The country is a home to more than 3500 Pharma companies and a network of 11,000 manufacturing facilities. Moreover, the Foreign Direct Investment for the pharmaceutical industry is 100% through automatic route for Greenfield pharmaceuticals. Moreover, the Indian government is expected to reach 65 billion dollars by 2024 and 120 billion dollars by 2030. Henceforth, the pharmaceutical industry is the fastest growing industry in India and the foreigner can take benefit of the same and invest it in the sector.

4. Financial Technology Industry (Fintech)

India is among the fastest growing Fintech market in the world. The nation holds more than 2000+ Fintech start-ups in India, as estimated by  Department for promotion of Industry and Internal trade. It is estimated that the industry’s market size is expected to grow to 150 billion dollars by 2025. The Fintech industry in India is divided into various segments, including lending, payment, wealth technology, and personal finance Management, Insurance Technology, Regulation technology etc. The Indian Fintech market has received almost 14% of the global funding and ranked number 2 on the deal volume. Till July 2022, there are 23 Fintech Companies that have gained Unicorn Status with an evaluation of over 1 billion dollars. Moreover, the government has also encouraged foreign entities to invest in India through IFSCA. Henceforth, the foreigner willing to invest in India can invest in the financial and technological sector as it is one of the beast fastest growing industry in India.

5. Education Technology Industry (Ed-tech)

In recent times, ED tech start-ups are becoming India’s fastest growing industry. The Indian Edtech start-up is expected to reach 4 billion dollars by 2025. The Indian Edtech start-ups raised more than 1.43 billion dollars in 2020. The Covide-19 pandemic and continuous lockdown have forced Indian educational institutions to implement tech-enabled learning solutions, making it the most funded sector in India. Since 2020, India has 4 Ed-tech start-ups that have gained unicorn status, estimating more than 4 billion dollars. The Indian government, looking at the prospectus of the Edtech industry, is expected to have more friendly policies to induce more foreign direct investment in the sector. The NEP 2020 (National Education Policy)^[1] has forced to look at the importance of leveraging technology in education sectors. Henceforth, the Ed-tech industry is currently in the process of growth, making it the best time to invest in by the foreigner.

Conclusion

The Indian economy is one of the best economies in the world, which has shown promising results in every sector after the Covid-19 pandemic. This shows the capabilities of the Indian government to tackle the worst situation, even during the times of pandemic. Being a developing country, it has proven to be the best nation for start-ups and upcoming entrepreneurs. To increase the participation of the Indian government in the development of the country, the government has introduced various schemes and offered financial support to many foreign entities. The India has the highest number of the fastest growing industry as compared to other nations. The foreigner willing to invest in India can look at the fastest growing industry mentioned above.

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