India Sunrise Sectors: Key to Achieving $32 Trillion Economy by 2047

India’s G20 Sherpa Amitabh Kant has underlined the need to perform well in ‘sunrise sectors’ as one of how the country could achieve the aim of making the country a developed one and a $32 trillion economy by 2047. These sectors are swift-growing and have unlimited growth prospects that put India on the course of a long-awaited economic breakthrough. The crossover sectors also known as sunrise sectors are industries that are relatively new but have great expansion potential. 

What are sunrise industries?

• Sunrise industries mean businesses that are yet to penetrate fully in the market but when they do, they have the potential of growing so big. It is a fact that these sectors frequently experience high Innovation speeds, a raised rate of emergence of startups, and a substantial of venture capital, making them promising areas for long-term investment.

• In India, more than one or two sunrise sectors are indicating exponential growth propelled by governmental support, increased technology implementation, and changing sensibilities toward sustainable development.

Important Sunrise Sectors in India

1. Electronics and Semiconductor industry

The electronics and semiconductor industries have the potential to lead the electronics revolution in India with several government initiatives. The PLI Scheme and the SEMICON India Program are major initiatives planned with a focus on enhancing production and Indian manufacturing supply chain-backed modules to cut out reliance on imports. It is further predicted that by 2026 the semiconductor market of India will grow threefold and will generate a production value of $300 billion. 

Semiconductor Market: India is offering substantial financial incentives either directly or through instruments such as Modified Scheme for Semiconductor Fabs making it a global.

2. Electric Vehicles (EV)

The EV industry could expand significantly faster, and India expects to be at the forefront of electric mobility. Today, the government offers incentives such as FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), and 100% FDI allowance for the sector. Today more than 12000 charging stations are functioning in the country, and this number will only increase in the future. The PLI Scheme for Advanced Chemistry Cells is designed to encourage battery manufacturing in India which shall entail reduced costs that would be passed on to the consumers to make the EVs affordable. The opportunity area to invest in EV manufacturing, as well as infrastructure, is quite potential in India due to more emphasis on sustainability.

3. Renewable Energy

India’s renewable energy industry is heading toward becoming one of the biggest in the world. The present central government has a more aggressive goal of attaining 500 GW of power supply from non-fossil resources by 2030. 

Several investment areas are emerging for green technologies including National Green Hydrogen Mission and Offshore Wind Energy. At present, the manufacturing of solar panels in India is 5-7 years behind the global benchmark, but now the situation is gradually improving, so great opportunities are open for investors. The sector enjoys favorable legal and institutional environments, increased emphasis on R&D, and collaborations with overseas partners which make it a ripe area for sustainable investments.

4. Agriculture and Food Processing (A&FP)

The need in agriculture and food processing industries holds immense prospects in following government policies and regulations by freedom in Pradhan Mantri Kisan Sampada Yojana and FDI. The Food Processing Industry has been supported through a new PLI Scheme and boosts investment in food structures. India, with its vast agricultural lands, shows promise for food processing after harvest selling crops overseas, and ensuring enough food for everyone. Farming in India creates jobs, boosts the countryside's economy, and helps make agriculture last for years to come.

5. Healthcare and Pharmaceuticals

India’s healthcare and pharma industries are showing good growth due to a strong medtech sector, with expectations for the sector to account for $50 billion in 2025. Schemes like Ayushman Bharat are set out to bring improvement in accessibility and cost to the pool population. Big areas like the drug industry are keen on extra investments thanks to easy reasons like being allowed to have 100% foreign cash. This part of the economy gets a boost from the strong expansion of India's health care business and where it sits in the worldwide health care delivery network.

6. Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML are making their waves across industries internationally, and the country is ripe for the disruption. Appreciable by healthcare, finance, education, and manufacturing AI and ML are trending technologies in the industry. Currently, India is also home to large technology talent and is seeing increasing growth in the number of startups, making AI a significant field of development. Still, there is work to do in terms of R&D investment and talent to help stand firm as one of the leading progenitors of AI in the world.

Sunrise Sectors’ Challenges

• Policy Uncertainty: When it comes to policy outcomes, policy oscillation as well as flip-flopping poses a rather unfavorable climate for investors and corporates.

• Regulatory Barriers: Slow marketing approvals, a lack of consolidated laws, and a confusing legal environment for sectors such as EVs, renewable energy, and AI, slow their progress.

• Infrastructure Gaps: To support the growth of the EV market and the associated services, substantial capital expenditures will be required, within areas of Charging Stations, Renewable Power Generation Interconnection, and sophisticated manufacturing plants.

• R&D Shortages: Looking at the advancements happening globally, especially in the tech market comprising AI, semiconductors, and clean energy, India has to doubly ensure more investments are being made towards research and development.

• Talent Scarcity: AI talent, renewable energy talent, talent in electric vehicle manufacturing, etc, are scarce in the global market. The former will be critical in reducing this knowledge gap and ensuring sustained growth of these industries.

Conclusion and Way Forward

India’s emergent industries are huge news for growth, new ideas, and green economy building. Some of these sectors include, but are not limited to the IT sector, BPOs, telecommunication, healthcare, civil aviation, and auto components that could transform the socio-economy of the nation if supported by the government policies as most of these sectors including 100% FDI through the automatic route. 

These rising and sunrise sectors are the sectors that need to be fostered by the government of India and the private sector collectively for the country to be able to achieve its dream of being a USD $32 trillion economy by 2047. If these challenges are dealt with and innovation encouraged, India shall unlock the optimum prospects of these industries for generating economic growth as well as sustainable development.