Streamline your tax compliance with our expert-assisted GSTR 9 & 9C services @ ₹14,999/-

Tax efficiency, interest avoidance, and financial control with advance payment @ 4999/-
Private Limited

Top 10 Businesses in India

India has been a business hub for several decades now. Having been housing many different types of business establishments, it does make one curious as to what are the sectors that top the list. Also, it may be interesting to learn how these sectors dodged the pandemic to maintain their positions in the market

The fate of the businesses in India sector within the Indian subcontinent has been ever-changing and ever-evolving. However, the last three years have been quite challenging for every sector, let alone the business sector due to the notorious pandemic, Covid-19. While every business faced its downside, small-scale businesses were literally tossed off the market. Perhaps most of them would take decades together to recover from the pandemic blues and to stand on their own. The endless lockdowns with erratic time schedules shrunk the revenues of established businesses as well. Get to know about the Top 10 Businesses in India.

 On the other hand, with the pandemic, the market’s needs and priorities have changed. The pandemic put forward new problem statements and several new businesses have sprung up to answer the same. Post Covid-19, there has been a radical shift in business opportunities in India. A number of establishments surprisingly turned challenges into opportunities. A variety of new gave a striking entry into the market which otherwise would not have happened. Many new players like online teaching platforms, several freelance projects, web development companies, health care concerns, and food services entered the game. However, few businesses held firm to their base despite the pandemic and proved to be the rulers of the market. These business Ideas have always had a demand, that was too strong even for the pandemic to break.

The following enterprises have steadily been offering great support to the economy of the country:

Textile Industry

Being one of the oldest industries in the country, the Indian textile industry has always supported the country’s economy.  The industry contributes about 2% of the country’s GDP (Gross Domestic  Product). It is expected that the industry will raise to a worth of a whopping $190 billion by 2025-2026. The industry is primarily concerned with the generation of raw materials such as silk, Wool, and jute and processing them into usable apparel. Yet another contribution from the industry is the plethora of employment opportunities it has to offer around the country.

Although the outbreak of Covid-19 affected the sector holistically on both the demand and supply sides, the robust framework of the sector managed to stand upright. For instance, much of the textile imports from China have been withheld, thus increasing the demand for local brands. With the exemplary demand for fashion in India, the textile industry could easily be one of the most lucrative industries in the country forever.

Some of the leading textile tycoons in India are Arvind Ltd, Vardhaman Textiles Ltd, Welspun India Ltd, Raymond Ltd, Trident Ltd, etc. Several start-ups in the sector like DaMENSCH, FREECULTR, and Swag Fashions Hub have been quite successful in the industry.

Pharmaceutical Industry

India has been the pioneer in providing generic drugs globally, and thus occupies an important position in the pharmaceutical market worldwide. The fact that the country has a resilient R&D sector can be attributed to the main factor for success in the pharmaceutical sector. Unlike other industries, the pandemic did not hamper the growth of the pharmaceutical industry but literally boosted it. 

There has been a recognizable digital transformation in the pharmaceutical industry in the post covid era. Several leading pharmaceutical companies had opted for online delivery of medicines and other covid-necessary products like masks and sanitizers, while the other industries were struggling to exist. Sun Pharmaceuticals, Dr. Reddy’s Laboratories Ltd, Alkem Laboratories Ltd, and Aurobindo Pharma Ltd are some of the leading names in the pharmaceutical sector.

Unlock your entrepreneurial journey with our bespoke business ideas service. Elevate your vision, conquer challenges, and turn dreams into thriving ventures. Let innovation be your compass on the road to success.

IT and Services

The Information Technology and Information Technology Enabled Services (IT and ITES) sector has been instrumental in shaping the Indian economy over the past few decades. This sector encompasses several departments, including software development and management, software consulting, online services, and Business Process Outsourcing (BPO). Many believe that the IT industry’s growth has contributed significantly to the globalization and industrialization witnessed in the country.

Moreover, this sector has generated numerous employment opportunities for the educated workforce in the country. During the Covid-19 lockdowns, the sector managed to keep running by adopting work from home (WFH) arrangements. Despite concerns that the post-pandemic era might witness a situation similar to Y2K, the industry has coped remarkably well. If its limitations are adequately addressed, the sector has the potential to flourish in the country in the years ahead. Some of the notable IT giants in the country include Tata Consultancy Services, Infosys, HCL, TechMahindra, among others.

Automobile Industry

The Automobile Industry in India has been one of the prime contributors to the country’s macroeconomic growth and technological advancement. By the year 2026, it is anticipated that the industry would reach US $300 billion. Also, India is expected to be the third-largest automobile market by volume, in the year 2026. Currently, the sector contributes about 35% of the GDP in the country. The lockdown period tested the grit of several Original Equipment Manufacturers (OEM) as the production was completely shut down. The reduction in consumer demand was another challenge the industry faced.

If the government supports the industry with tailor-made plans, the industry can recoup in no time. Measures such as reduction in prices of materials required for production, minimizing the taxes imposed, etc have been proposed. Tata Motors Ltd, Maruti Suzuki India Ltd, Mahindra & Mahindra Ltd, and Hero Motor Corp Ltd are the big names in the Indian automobile sector wherein Maruti Suzuki is the biggest automobile manufacturer in India.

Chemical and Petrochemical Industry

The petrochemical industry in India is undoubtedly one of the most diversified industries. It encompasses bulk chemicals, agro and petrochemicals, polymers, and a range of fertilizers. The sector is worth $178 billion and is expected to raise to $300 billion by 2025. Bulk chemicals are the largest sub-segment of the Indian chemical industry holding 40% market share whereas specialty chemicals contribute to approximately 19% of the market share. Gujarat, Maharashtra, and Uttar Pradesh hold more than 50% of Gross Value Add (GVA) and Gross Output of the chemical and petrochemical industry. Like any other industry, there was a decline in demand in this sector during the pandemic. Except for the shutting down of a few plants in select geographies, the sector has withstood the showstopper quite well. A few names worth quoting in this sector are TATA chemicals Ltd, BASF India Ltd, Pidilite Industries Ltd, Indian Oil Corporation, Reliance Industries, etc.

Engineering Industry

Increased investments in infrastructure, industrial manufacturing, consumer durables, and the growth of automobile industries have all contributed to the growth of the Engineering industry in India. The industry has been backing the Indian economy steadily for several years. Export of transport and construction equipment, machinery, light engineering equipment etc has boosted the Indian economy to a great extent. 

Therefore, it is not surprising that the sector is the largest contributor to the Indian export industry. Being the largest industrial sector in the country, it paves way for about 63% of international business affiliations. The exports from the sector amounted to US $ 75.90 billion in the year 2020. Covid 19 did delay and even canceled the projects in several locations as the supply chains were under severe threat during the lockdowns. But most businesses stabilised their supply chains by leveraging their visibility and reaching out to new customers. This in turn reinforced the financial position of the companies. TATA group, Reliance Industries, Larsen, and Turbo Ltd are some of the best players in the market.

Financial Services

The rising income tax return of the population has expanded the growth of Financial Services in India. Commercial banks, insurance establishments, NBFCs, etc come under Financial Services. It is anticipated that the Indian fintech industry would reach US $83.48 billion by 2025. Unfortunately, the Covid 19 attack was a bit too harsh on the already unstable Indian economy, thus creating both long-term and short-term challenges to this sector. However, by executing strategic decisions and redesigning the business models the financial sector has been making efforts to pick itself up. Also, by making use of various digital channels, the sector has been able to successfully connect across various business platforms to facilitate the seamless flow of business during tough times.TATA Capital Financial Services Ltd, Aditya Birla Finance Ltd, and Bajaj Finance Ltd are a few of the top rankers in this sector.

Fast Moving Consumer Goods (FMCG)

Being the fourth largest sector in India, it is believed that the FMCG sector would double to US $70 billion by 2025. Household and personal care items alone amount to 50% of FMCG sales in India. Further, FMCG demand is not a thing of the urban citizens alone but has rapidly spread across the rural population as well. 

Given the dynamic nature of the FMCG sector, it is not surprising that it hit the rock bottom when the pandemic struck. However, there was an increase in the sale of personal care products like liquid hand washes, vegetable washes, etc due to the fear of contracting the virus. Thus, although there were dips in certain areas, the industry was still able to maintain its position. Godrej, Parle Agro Ltd, ITC Ltd, Marico Ltd, and Amul are a few of the leading FMCG companies in India.

Education and Training Industry

As India has the largest population in the age group 5-24, it is quite evident that the education and training sector could thrive splendidly. It may be interesting to learn that the application to the ‘Study in India’ project increased by 146% in 2021. Further, the education sector allows 100% Foreign Direct Investment (FDI) through the automatic route. The educational sector is expected to mount up to US$ 225 billion by 2025. However, the outbreak of covid did dampen the spirits of the educational sector to some extent. The school and college closures and the effectiveness of resorting to online training have been debated by several master brains. But the industry did what it could and rose up to the occasion promptly. Some of the leading Indian companies in the sector are BYJU’s, Dexler Education, Educomp Solutions, IGNOU, NIIT, etc. 

Beverage Industry

While the industry comprises both alcoholic and non-alcoholic beverages, India has been the pioneer in producing hot beverages, namely tea, and coffee. India produces about 3% of global output in coffee. The Compound Annual Growth Rate (CAGR) of instant coffee alone has seen a 4% increase in the past decade. Also, India is the second largest country to manufacture tea globally and is among the top 5 tea exporters in the world. The harrowing pandemic, however, did not spare this industry either. Like other product-based industries, there were initial hiccups in procuring the raw materials amidst the stringent lockdowns. Further, due to the limited movements across the borders, the imports and exports of beverages were stalled. However, the demand for coffee and tea increased during the lockdown remarkably. The Dalgona coffee-making challenge that went viral across social media during the lockdown cannot be easily forgotten. This is good enough proof that the industry is too strong to be capsized entirely. Tata Tea, Bombay Burmah, Roselle India, and Goodrick’s groups are the top Indian companies that are tea manufacturers and exporters.

Conclusion

In conclusion, achieving success in the top 10 businesses in India demands a strategic approach that goes beyond operations and customer satisfaction as it necessitates robust legal and financial foundations. 

With Vakilsearch, businesses can seamlessly navigate the complexities of business incorporation and fundraising through compelling investment pitch decks and company incorporation services. 

To know more, request a callback from our experts today!

FAQs on Top 10 Businesses in India

Who is the No 1 business in India?

Reliance Industries is one of the largest and most profitable companies in India. It has a diverse business portfolio, including oil and gas exploration, refining, petrochemicals, retail, and telecommunications. The company is also a major player in the renewable energy sector.

What is India's most profitable business?

Many businesses showcase the potential to become highly profitable in India. Some of these are education technology, event management, real estate, job consultancy and digital marketing.

Which business is rich in India?

The pharmaceutical industry is rich in India, as India is the world’s largest exporter of generic drugs.

Which business is in demand in India?

Some businesses that are in demand in India include interior design and decoration, pharmaceutical businesses, and cloud kitchens. Businesses in High Demand in India: Edtech: The Edtech sector in India is booming, driven by factors such as increasing internet penetration and rising demand for quality education. Companies like Byju's, Unacademy, and Vedantu are some of the leading players in this space. Healthcare: The healthcare sector in India is also growing rapidly, driven by factors such as an ageing population and rising disposable incomes. Companies like Apollo Hospitals, Fortis Healthcare, and Max Healthcare are some of the leading players in this space. Fintech: The Fintech sector in India is another rapidly growing sector, driven by factors such as the increasing adoption of digital payments and the growing demand for financial inclusion. Companies like Paytm, PhonePe, and MobiKwik are some of the leading players in this space. E-commerce: The e-commerce sector in India is also growing rapidly, driven by factors such as increasing internet penetration and rising disposable incomes. Companies like Amazon, Flipkart, and Myntra are some of the leading players in this space.

Which industry will boom in 2025?

Industries Expected to Boom by 2025: Renewable Energy: The renewable energy sector is expected to boom in India, driven by factors such as government support and declining costs of solar and wind power. Electric Vehicles: The electric vehicle sector is also expected to boom in India, driven by government incentives and rising fuel prices. Artificial Intelligence: Artificial intelligence is expected to revolutionize a wide range of industries in India, including healthcare, manufacturing, and agriculture. Internet of Things (IoT): The Internet of Things is expected to connect a wide range of devices in India, creating new opportunities for businesses in areas such as smart homes and smart cities.

Which business will grow in 2025?

The outsourcing business, IoT industry, renting out co-working spaces, 3D printing services, consumer goods and services, and the healthcare industry are expected to grow in India in the future.

Also, Read :


Subscribe to our newsletter blogs

Back to top button

Adblocker

Remove Adblocker Extension