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 Top 10 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
A stalwart of the Indian economy for centuries, the textile industry weaves its threads deeply into the fabric of the nation. It’s a significant contributor, currently generating around 2% of the country’s GDP, and is projected to reach a staggering $190 billion by 2026. This powerhouse industry takes pride in its ability to transform raw materials like silk, wool, and jute into beautiful and functional apparel. But its impact goes beyond fashion – it’s a major source of employment, providing opportunities for countless individuals across India.
The industry faced challenges during the recent global pandemic, experiencing disruptions on both the supply and demand sides. However, its inherent strength and adaptability shone through. For instance, a decrease in textile imports from China created a golden opportunity for domestic brands to step up and fill the gap. Coupled with India’s ever-growing love affair with fashion, the textile industry has the potential to be a permanent leader, driving economic growth and innovation for years to come.
Pharmaceutical Industry
India reigns supreme as a global leader in generic drugs, carving a significant niche in the worldwide pharmaceutical market. This success story can be attributed to two key factors. Firstly, India boasts a robust and resilient Research & Development (R&D) sector, constantly innovating and pushing boundaries. Secondly, streamlined company registration processes have made it easier for numerous pharmaceutical firms to flourish and contribute to the industry’s strength. Unlike many sectors crippled by the pandemic, the pharmaceutical industry witnessed a surge in growth. While other businesses struggled to survive, leading pharmaceutical companies like Sun Pharmaceuticals and Dr. Reddy’s Laboratories embraced digital transformation. They leveraged online platforms to deliver essential medicines and COVID-related supplies, ensuring healthcare accessibility during a critical time. This adaptability and focus on innovation position India’s pharmaceutical industry for continued leadership in the global market.
IT and Services
The IT and ITES (Information Technology and Information Technology Enabled Services) sector has emerged as a cornerstone of the Indian economy in recent decades. Encompassing a vast array of services like software development and management, consulting, online ventures, and Business Process Outsourcing (BPO), it’s widely credited with propelling India’s globalisation and industrialisation. The sector has not only fueled economic growth but also created a wealth of employment opportunities for India’s skilled workforce.
This adaptability was further proven during the tumultuous COVID-19 lockdowns. The IT and ITES sector seamlessly transitioned to work-from-home models, ensuring business continuity and demonstrating remarkable resilience. While initial concerns existed about a post-pandemic “Y2K” type situation, the industry has coped exceptionally well. By addressing existing limitations and fostering continuous improvement, the IT sector holds immense potential to remain a frontrunner in India’s economic journey. Leading the charge are IT giants like Tata Consultancy Services, Infosys, HCL, and Tech Mahindra, among many others.
Automobile Industry
India’s automobile industry roars as a major engine of the country’s economic growth and technological prowess. By 2 026, it’s projected to reach a staggering $300 billion, solidifying India’s position as the world’s third-largest car market by volume. Currently, this powerhouse sector contributes a significant 35% to India’s GDP. However, the recent pandemic threw a wrench into the works, forcing production shutdowns and dampening consumer demand. Despite these challenges, the industry demonstrated remarkable resilience.
With the right government support through tailor-made plans like reduced material costs and tax breaks, the Indian automobile sector has the potential for a swift recovery. Leading the charge are automotive giants like Tata Motors, Maruti Suzuki, Mahindra & Mahindra, and Hero MotoCorp, with Maruti Suzuki reigning supreme as India’s largest car manufacturer. The future of the Indian automobile industry looks bright, poised to continue its high-gear journey towards continued success.
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
India steeps itself as a global leader in hot beverages, boasting a rich heritage and significant production. The country contributes a sizeable 3% of the world’s coffee output, with instant coffee experiencing a noteworthy 4% CAGR jump in the past decade. As the world’s second-largest tea manufacturer and a top-5 exporter, India’s fragrant tea leaves find their way to cups around the globe.
The recent pandemic, however, presented challenges. Stringent lockdowns disrupted raw material procurement, and border restrictions stalled beverage imports and exports. Yet, the industry demonstrated remarkable adaptability. The now-famous Dalgona coffee challenge, a viral social media trend during lockdowns, became a testament to the enduring love for coffee. This surge in coffee and tea consumption during a challenging time proves the industry’s inherent strength. Leading the charge are Indian giants like Tata Tea and Bombay Burmah, ensuring India remains a dominant force in the global hot beverage market.
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.
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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.
