Top 5 Fastest Growing Businesses in India

The economy of India is the sixth-largest in the world measured by nominal GDP and the third-largest in the parameters of purchasing power parity. It has also been classified as a newly industrialized country in the 2nd world countries, and one of the G-20 major economies, with an average growth rate of approximately 7% over the last two decades.

We looked into it and found out the Top 5 Fastest Growing Businesses in India that can be given most of the credits. Here are the top industries responsible for India’s GDP:
1) Information Technology
There are no doubts to the fact that India is the fastest growing IT hub amongst the 2nd world countries. With start-ups in almost every corner, run by brilliant minds and incorporated in cities like Hyderabad and Bangalore, India has set its eyes on the game. The IT sector has been India’s gold mine for quite some time now. The industry has contributed significantly to changing India’s image from a slow developing economy to a global player in providing world class technology solutions making it #1 on the Top 5 Fastest Growing Businesses in India.
The industry of Information Technology in India is mainly divided into two major components that are IT services and business process outsourcing, also called BPO. IT Industry has a great significance in building the country’s GDP. NASSCOM and a few industry experts say the Indian IT workforce is most likely to touch 30 million by the year 2020, becoming the highest IT sector employer. This will be accompanied with a steady increase in pay in a sector already offering a high base. The outsourcing industry is also expected to turn into a $2.5 billion industry.
In the current world scenario, India is the second-largest exporter of IT. Exports have dominance over the Indian IT industry. They constitute about 77% of the industry’s total revenue. The domestic market is also significant, due to the robust revenue growth. The industry’s share of total Indian exports including merchandise and services increased from less than 4% to 25% in a span of 4 years. ”The technologically-inclined services sector in India accounts for 40% of the country’s GDP and 30% of export earnings, though it employs only 25% of the workforce”. The Top Five Indian IT Services Providers are Tata Consultancy Services, Infosys, Cognizant, Wipro, and HCL Technologies.
The IT sector is also responsible for the massive employment generation in India. The industry generates 230,000 jobs in a year, hence directly employing about 2.8 million people and indirectly employing 8.9 million, making it a pretty dominant player in the global outsourcing sector. The industry still continues to face challenges in the globalized modern world, especially from countries like China and Philippines.
India’s growing status in Information Technology Industry has enabled the country to form close ties with both the United States and the European Union. A recent initiative by the Prime Minister Narendra Modi called ‘Digital India’ has also proved to be an aid.
2) Telecommunications
India’s telecommunication network is the second largest in the world by a number of telephone users, both fixed communications and mobile phones with over 1 billion subscribers as of 2017. It has one of the lowest call tariffs in the world enforced by mega telecom operators. There is unbelievable competition between the operators with Reliance currently heading the run with the introduction to ‘Jio’. India also has the world’s second-largest Internet user-base. There have been around 350 million internet subscribers in the country.
All this directs to a focal point that the growth of enterprise mobility in India will eventually lead to significant employment growth as well. India today is at a stage in telecom growth where it has scope for substantial growth almost like where America was a decade ago. Our mobile and Internet penetration has to increase further, resulting in a new era in enterprise mobility.
“Major sectors of the Indian telecommunication industry are telephone, the internet and television broadcast Industry in the country which is in an ongoing process of transforming into next generation network, employs an extensive system of modern network elements such as digital telephone exchanges, mobile switching centres, media gateways and signaling gateways at the core, interconnected by a wide variety of transmission systems using fibre-optics or Microwave radio relay networks.”
Various new technologically advanced equipment has been introduced in this industry like copper-pair, optic-fibre, and wireless technologies. DTH, which cannot be termed as a new broadcasting technology anymore, has attained significant popularity in the Television segment. India incorporates a diverse communications system, which links all parts of the country by telephone, Internet, radio, television, and satellite. It makes up to #2 on the Top 5 Fastest Growing Businesses in India.
Telecommunication has supported the socio-economic development of India and has played a significant role to narrow down the rural-urban digital divide to some extent. It also has helped to increase the transparency of governance with the introduction of e-governance in India. The government has pragmatically used modern telecommunication facilities to deliver mass education programs for the rural folk of India. The major contributions to this revenue are Airtel, Reliance Communications, Idea, Tata Communications, MTNL, TTML, BSNL, Vodafone India, Tata Teleservices and Aircel.
3) Healthcare
There are articulate indications that healthcare is going to be a major sector that will initiate economic growth and contribute to employment in the country. “Over 40 million new jobs are expected to be generated by 2020,as per a report titled ‘India’s New Opportunities-2020' by the All India Management Association, Boston Consulting Group and the Confederation of Indian Industries (CII).” The Indian healthcare industry also has an upper hand over other developing countries in becoming a global destination for medical tourism. The medical treatment and educational services in India are only a part fraction of the cost in the 1st world countries which helps it become #3 on the Top 5 Fastest Growing Businesses in India.
The country might be lagging in molecule development and drug patents, nevertheless, an escalating disposable income has enabled a strong domestic market potential in India. This will, in turn, result in substantial employment generation across various functions, such as sales, marketing, HR, IT and operations, within the industry.
Modi’s government presented plans for a nationwide universal health care system called the National Health Assurance Mission. This initiative would provide all citizens with free drugs, diagnostic treatments, and insurance for serious ailments. Private health providers entered the market with the help of numerous government subsidies. Most of the healthcare capacity added after 2005 has been in the private sector, or in partnership with the private sector.
4) Infrastructure
India’s infrastructure industry has been expanding over the past decades. India is the fourth largest and probably the second-fastest growing economy, with infrastructure being one of the most profiting industry as of 2017. The infrastructure industry in India is highly disjointed. Its exact size and the jobs it generates each year in absolute terms if difficult to decipher given all the human labor put into it.
India’s infrastructure industry has been expanding over the past decades. India is the fourth largest and probably the second-fastest growing economy, with infrastructure being one of the most profiting industry as of 2017. The infrastructure industry in India is highly disjointed. Its exact size and the jobs it generates each year in absolute terms if difficult to analyze, given all the human labor put into it.
However, be it roads and highways, railways, aviation, shipping, energy, power or oil & gas, the Indian government and the various state governments are seemingly making rapid progress and are heading towards greater economic growth. This has led to noteworthy employment generation, though a majority of it is still in the unorganized sector of human labor. Over the next 10 years, the infrastructure sector in India will need to sustain its growth momentum to maintain an overall economic profit. It makes to #4 on the Top 5 Fastest Growing Businesses in India.
5) Retail
Retailing in India is one of the foundations of its economy and balances in for about 10 percent of its GDP. The worth of Indian retail market is estimated to be US$ 600 billion. It is one of the top five retail markets in the world by economic value. India is one of the fastest rising retail markets in the world, with around 1.2 billion people.
The retail sector has grabbed headlines with discussions of 100% FDI in single brand retail, which is currently capped at around 50%. Though the outcome is still undecided, the opening up of India’s retail will create a stronger, organized industry that will help in generating employment, helping it to upto #5 on the Top 5 Fastest Growing Businesses in India.
Now, only a small part of retail in India is structured. Despite this, it is estimated that the sector in India is worth more than $400 billion, with domestic and international players planning to expand across the country.
“Industry leaders predict that the next phase of growth will emerge from rural markets. There are projections of the workforce doubling by 2015, from the current five lakhs in both organized and unorganized sector.”
We hope this information was useful, here are a few suggested reads:
Top 10 Business Incubators in India
Steps to Start a Company in India
