India is the 4th largest economy in the world and is still growing. Recently, this growth can be attributed to the rise in startups and entrepreneurship, making us the 3rd largest startup ecosystem.
As an investor or an entrepreneur you might ask, which are the top startup sectors in India? In this blog, we will discuss the 5 most popular sectors followed by other rising sectors in India’s startup ecosystem.
Top 5 Startup Sectors in India
Tracking these emerging startup sectors in India can help you make profitable early investments. For an entrepreneur, you can see which businesses are gaining the most investments and are booming. Let’s discuss the most popular sectors with trending startup sectors in India.
Tech is a big part of our startup ecosystem. In the first quarter of 2025, Indian tech startups raised $2.5 billion, 13.64% more than the last quarter (source). So, it shouldn’t be surprising that the top 5 sectors are related to tech or are improving tech in India.
1. DeepTech
DeepTech is dedicated to creating advanced technologies such as AI, blockchain, biotechnology, quantum computing, material science, and more. The growing resources, skilled youth, and passion for tech have contributed to the accelerated growth of the DeepTech sector. The DeepTech technologies affect other sectors and industries, leading to an advanced ecosystem.
In the CY2024, DeepTech funding experienced a 78% surge by securing $1.6 billion in startup funding in India. 35% of this funding was secured by the seed and early-stage startups (source). It indicates a great inclination towards the growth of the sectors and the attention it gets from investors and entrepreneurs.
DeepTech creates a strong founding pillar driving innovation and growing infrastructure that contributes to the growth of India’s digital economy. Some top sectors and industries using DeepTech are healthcare, logistics, and manufacturing to streamline operations, improve efficiency & quality, and reduce cost.
2. Fintech
India will retain its third most funded fintech sector globally in 2025. The Indian fintech market secured $366 million in Q1 2025 (source). Late-stage fintech startups secured major funding with 47% growth.
While the tariff conflicts affect the economy, the fintech sector saw positive growth trends. One such trend was the expansion of UPI beyond borders in countries like Singapore, Sri Lanka, and Nepal. It opened the global market gates for Indian UPI apps like Paytm, PhonePe, and more.
Banking tech, insurance platforms, and other fintech sectors are also witnessing growth, even with fluctuating market conditions. As per reports, banking tech secures $108 million which records a massive 1700% increase from the $6 million in Q4 2024.
3. Healthcare & Life Science
Healthcare is one of India’s core sectors, especially post-pandemic. The Indian life-science sector has secured a $1.9 billion investment between 2020-24 (source). The growth of advanced biotechnology and AI has led to the creation of innovative healthcare and life science products/services.
Pharmaceuticals, diagnostics, medical devices, and AI-powered healthcare solutions are growing every day and shaping the bright future of the Indian healthcare and life science sector. The government-backed institutions for education and research play a vital role in the development of the healthcare sector.
4. Renewable Energy
The increasing demand for electricity and the need to find eco-conscious alternative sources for it, has led to a wave of innovation in the renewable energy sector. The green tech industry has gained investment from national and foreign investors. Recently, the government of India has permitted 100% FDI investment in the renewable energy sector through an automatic route. It has made the Indian renewable energy market lucrative to global investors, leading to a $1.7 billion investment in FDI in 2023-24 (source).
The renewable energy sector also encompasses green and clean tech startups focusing on creating sustainable energy. The establishment of research centers, tax benefits, and subsidies makes the sector more lucrative for entrepreneurs and investors.
5. Climate Tech
Climate Tech startups are essential for creating sustainable energy and reducing emissions to save our natural resources and ecosystem. Therefore, the government has been supporting innovative climate tech startups.
Recently, the Department for Promotion of Industry and Internal Trade (DPIIT) has joined hands with the Global Energy Alliance for People and Planet (GEAPP) to support innovative startups to help achieve the goals of India’s net-zero ambition (source). Under this partnership, the startups can access startup funding, mentorship, pilot project facilities, and marketing support. It helps climate tech startups grow.
Other Emerging Startup Sectors in India
A few more sectors that have shown tremendous growth are as follows:
- Edtech:
The Edtech startups have received $13.1 billion in startup funding in the last decade from both national and global investors.
- Agritech:
Agritech is gaining popularity due to its impact on society and the economy. Out of the total agritech startups, 157 have secured series A stage funding.
- E-commerce:
E-commerce startups are growing every day and have secured $1.5 billion in funding in 2024.
When exploring startups or prominent sectors in India, you must consider the macro and microeconomic trends. It affects the growth and the ROI of investing in those sectors. Networking can help you identify top startup sectors in India.
Startup events such as 21BY72’s Global Startup Summit help you explore the best-performing sectors and interact with investors and entrepreneurs. Explore the best startup opportunities in India at our startup event. Visit our website for more information.
Conclusion
India is the third-largest startup ecosystem globally. The supportive government policies, skilled workforce, availability of investors, and resources make it easier for startups to thrive. Indian innovative tech startups have gained traction in recent decades.
DeepTech, Fintech, Healthcare & Life Science, Renewable Energy, and Climate tech have shown tremendous growth and attracted FDI. Attend our Global Startup Summit to explore top startup sectors in India. Early birds get amazing discounts; visit our website for more information.
FAQs
1. Which sectors are best for startups in 2025?
The startup trends often change, but the top sectors usually remain the same. The tech-based sectors dominate the startup ecosystem in India. Therefore, the top sectors include deep tech, climate tech, healthcare & life science, fintech, edtech, enterprise application, agritech, renewable energy, and more.
2. What are the government initiatives for the growth of the startup ecosystem in India?
The government has been supporting startups across diverse sectors and stages. The goal is to create a nurturing ecosystem for the startups to thrive and expand in global markets. The relevant ministry carries out the government initiatives. A few initiatives include Domain-specific Centres of Excellence by MEITY, Cent Kalyani Scheme by the Central Bank of India, PRISM by the Ministry of Science & Technology, AGNIi by the Ministry of Commerce and Industry Schemes, etc.
3. Which factors contribute to the growth of the Indian startup ecosystem?
The Indian startup ecosystem is known for its resources, such as a talented workforce, government policies, funding sources, mentorship, and networking. A combination of all these creates a nurturing environment for the startups to grow.
4. Which startup sectors create more jobs in India?
E-commerce, health tech, edtech, and fintech are some of the top job-creating sectors in India. Renewable energy and agritech startups also create employment and save our natural resources.
