It is undeniable that India is a diverse sub-continent, in its people, its culture and even in business opportunities. Over the century, we have created a
thriving economy with many business investment opportunities for local and global investors.
This article is a list of some of the best sectors to invest in India in 2025. You’ll also learn about the market trends and future of investment in India.
Top Growing Industries in India for Investment
The following are the emerging markets in India for investors, picked for their growth potential, government support, and upcoming infrastructure.
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IT & BPM Sector
IT & BPM stand for Information Technology and Business Process Management, respectively. The IT & BPM sector contributed 7.5% to India’s GDP in FY23. Industry breakdown shows that IT services contributed 53.7%, BPM contributed 21.9%, and ER&D and software products contributed 24.4%. While the first quarter of 2025 saw slow growth in the IT sector, the market is on the rise.
For FY 2025-26, our government has allocated $232 million budget sanctions. Furthermore, DPIIT has ranked computer software and hardware as the second-highest FDI securing sector (source).
We know India is home to the most skilled and young IT talents. The adoption of advanced technologies such as AI, ML, AR & VR is creating a promising future for the IT & BPM sector in India. A few growing startups in this industry are Zvolv and Mynd Solutions.
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Healthcare & Healthtech
Healthcare is an ever-evolving market which has been seeing rapid growth, especially post-COVID-19. As per the source, the healthcare industry was
valued at $370 billion in 2022, which is expected to become $610 billion by 2026. Supportive policies and health tech research creates innovative solutions for diagnostic medicine and support the pharmaceutical sector. The government of India has sanctioned a budget of $ 11.50 billion for FY 2025-26 to boost development and maintenance of the healthcare sector.
The healthcare sector is one of the top employment-creating sectors that has employed 7.5 million people till FY24. Healthtech is revolutionizing how
healthcare works and creating efficient and innovative solutions. A few unique health tech startups are 1mg, Healthify Me, Onsurity, Orange Health, and Docplexus.
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Renewable Energy
As per the study published by the International Renewable Energy Agency (IRENA), India secured the 4th rank for the most renewable energy installed capacity in 2024. Right now, India has 205.52 GW of non-fossil fuel-based energy and plans to increase it to 500 GW by 2030 (source). The Green Energy Corridor, Wind-Solar Hybrid Policies, 100% FDI permits, and Indigenous supplier ecosystem make renewable energy one of the top-growing industries in India.
So you can see that renewable energy is one of the fastest-growing sectors, providing prominent startup investment opportunities in India. Wind Power, Bio Power, and Solar Power contribute 48.36%, 10.74%, and 10.03% to the total installed renewable energy capacity till January 2025 (source). Some notable startups in this sector are ReNew Power, Avaada Energy, Sea6 Energy, Cygni Energy, and more.
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Automobile (EVs)
India is one of the most lucrative automobile markets as it’s the largest manufacturer of three-wheelers, the second largest manufacturer of two-wheelers, and the third largest manufacturer of passenger cars globally (source). Furthermore, the Indian government is investing significantly in supporting the industry and becoming a global automobile hub.
Under the National Electric Mobility Mission Plan 2020, India has launched the National Mission for Electric Mobility (NMEM) and FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) to create EV infrastructure and high-quality EVs. They provide incentives to boost startups and attract investors. Some well-established automobile startups are Arther Energy, Ola Electric, Yulu, and CredR.
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FinTech
The Indian finTech economy is ranked as the third largest in the world (source). The industry is rising because of innovative and high ROI business ideas in India. This market attracts the most FDI with its supportive policies and infrastructure to facilitate paperless monetary transactions, digital financial services for banking & insurance, and more. Some popular FinTech startups are Zerodha, CRED, Acko, Instamojo, and more.
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Agriculture & Agritech
Agriculture accounts for 18% of India’s GDP and is the source of income for millions of people. India is the key global supplier of spices, rice, milk, and
pulses (source). The Indian Agriculture industry covers vegetable and livestock farming, fishery, and forestry. Therefore, the government has pushed farmers and agriculture companies to adopt modern technology to create a skilled workforce and exceptional agricultural products to become a global leader.
The agritech startups have incorporated AI, robotics, and precision farming techniques to improve the yield. Therefore, the sector and its innovative
startups provide many profitable venture capital opportunities in India. A few notable Agritech startups are Aqgromalin, DeHaat, Agrostar, and Ecozen Solutions.
Foreign Direct Investment Trends in India in 2025
Under the ‘Make In India’ Initiative, many companies have created lucrative global business investment opportunities in India. The Atmanirbhar Bharat vision, with the support of government policies and incentives, has helped Indian brands thrive and secure FDI. As per a source, India has recorded an FDI inflow increase of 57% between 2014-22.
The liberalization of defence, retail, insurance, and single-brand retailing has contributed to the growth of FDI. IT, Fintech, and Renewable energy industries also attract FDI. Furthermore, implementing GST and creating Special Economic Zones (SEZs) like Noida, Kandla, Madras, Visakhapatnam, Falta, and more has helped India attract Foreign Direct Investment in India in 2025.
Explore the business investment opportunities in India with 21BY72
21BY72 is a dedicated angel network and ecosystem to help entrepreneurs and investors connect and boost the Indian startup ecosystem. We organize various events, including the Global Startup Summit, where we help entrepreneurs exhibit and pitch their startups to secure funding. By attending our summit, investors can explore the top industries and innovative startups in diverse sectors to make a profitable investment.
From expert panel discussions to a startup exhibition, our summit helps you explore the latest trends in the Indian and global startup ecosystem. We are organizing our 4th season of Global Startup Summit in June. Check our website for more information and secure an early bird discount now!
Conclusion
India is a thriving startup ecosystem with lucrative business investment opportunities. We explore the top six sectors (in no particular order) in India
that contribute to the growth of India’s economy and attract FDI. The supportive government incentives and policies and the skilled workforce make
India a hub for many industries. We also explored some trends for Foreign direct investment in India in 2025. Explore the best sectors to invest in India in 2025 by attending our Global Startup Summit in June!
FAQs
1. Is India a good market for global investment?
Yes. India offers lucrative markets for global investment. India has one of the fastest-growing economies with supportive policies, a skilled workforce,
diverse industries, and diversified ecological systems. The Make In India initiative and the liberalization of FDI in many sectors have created many
lucrative businesses and startups in India. A few thriving Indian industries are IT, renewable energy, agritech, healthcare, Fintech, and automobile. Startups and companies create a good market for global funding.
2. How do you find business investment opportunities in India?
Whether you are a local investor or a global investor looking for lucrative opportunities, you should stay current with industry trends. You can select a
niche to streamline your investment and do thorough research by tracking new listings, attending networking events like the Global Startup Summit at TiECon, or any industry-specific exhibitions. Keep an eye on government policies and schemes to identify rising industries and sectors to be an early investor. You can also join an angel network like 21By72 or venture capital firms to find reliable startups.
3. What’s the future of investment in India?
The Indian ecosystem rapidly adopts advanced technology and has a highly skilled workforce, creating lucrative investment opportunities. Startups and businesses are incorporating advanced technology in diverse fields like healthcare, automobile, agriculture, education, finance, and more. It creates jobs and funding opportunities for global investors. The supportive government policies and relaxed FDI laws make securing funding easier. The incentives for startups and SEZs are shaping the entrepreneurial ecosystem in India.
