Gross domestic product (GDP) in India is forecast to break the $3 trillion barrier for the 2022 financial year. This marks a $500 billion rise on its GDP for the previous financial year, when GDP totalled $2.55 trillion. It represents an 8.68% growth rate, which hasn’t been experienced in the Indian economy since the turn of the new millennium.
Much of this growth is underpinned by a plethora of fast-growing sectors across the Indian economy. Below, we shine a spotlight on some of the pioneering industries that are helping to turbocharge GDP, ensuring a swift recovery from the unprecedented situation of the last two years.
Digital wallets and payments
The digital wallet sector has become the backbone of India’s fintech scene. There are some huge players in the digital wallet space coming out of the subcontinent right now. These include Paytm, which is currently experiencing significant growth of its own and is a broad-based digital payment solution for all manner of domestic and commercial purposes. In fact, these operators have made such an impact that digital wallets are now the most prominent point-of-sale payment method. Analysts believe India’s digital wallet sector will grow from a value of $30.1 billion in 2020 to a value of $429.20 billion by 2027 – a compound annual growth rate (CAGR) of more than 45%.
The Indian automotive industry is undoubtedly one of the most vibrant sectors in the country right now. It’s said to account for approximately 7% of India’s entire GDP and that figure could grow to more than 12%. For a nation the size of India to rely on one sector for more than a tenth of its overall output is something to behold. The country stands top of the pile in 2022/23 in terms of the production of tractors and other agricultural vehicles too. The mainstream automotive market in India is also rapidly attracting more overseas interest, with Kia Motors making the move to the subcontinent in the last two or three years.
There is a belief that India’s iGaming sector will grow at an impressive compound annual growth rate (CAGR) or 40%, with the industry forecast to be worth $2.8 billion by the end of 2022. There is a marked rise in the number of new casino options, many of which now deliver fully responsive gameplay that ensures cross-platform engagement – something that’s incredibly important given the proliferation of smartphones across India. One of the main reasons behind the increasing engagement with iGaming sites by Indians is their willingness to embrace Indian popular culture. Iconic card games like Teen Patti and Andar Bahar are now made available to wider audiences.
In 2021, India’s government revealed new goals for renewable energy that it hopes to meet by 2030. It plans to turbocharge non-fossil power capacity to upwards of 500 Gigawatts. In turn, it plans to power half of the nation’s energy consumption through renewable sources. Although indications this year suggest that it could fall short of those targets, the sector is still ripe for growth. The industry has seen upwards of $15 billion worth of investment across everything from green hydrogen to solar equipment.
Those with a keen interest in the Indian economy should certainly keep a close eye on this quartet of industries in the coming months as they look to set the tone for the rest of the decade.