5 industries Shaping the Indian Economy

The titans propelling the country's economic growth over the last 20 years have proven remarkably resilient. In addition to expanding in size, businesses have also left their mark on the world and had a significant impact on it.

IT Industry

The 21st century is earmarked as Information Technology driven, and India is at the Centre of global attraction and considered a knowledge powerhouse. The IT industry covers IT services, IT-enabled services (ITES), e-commerce (online business), Software and Hardware products.

IT-based services are indispensable for any organisation to increase productivity, ease of doing business, and grow efficiently and economically in this competitive world. Information Technology has not only contributed to the economic growth of the country but has also made governance more competent and approachable.

The information technology sector contributed a share of about 7.5 percent to the country's GDP in fiscal year 2023. According to NASSCOM, the sector aggregated revenues of 180 billion dollars in 2019, with export revenue at 99 billion dollars and domestic revenue at 48 US billion dollars, growing by over 13%. The United States accounts for two-thirds of India's IT services exports.

India's technology services industry can achieve $300-350 billion in annual revenue by 2025 if it can exploit the fast-emerging business potential in cloud, artificial intelligence (AI), cybersecurity, and other emerging technologies, according to a report by industry body Nasscom and global consulting firm McKinsey.

Casino and Online Gambling

In India, the online casino market is growing in popularity. The ability to play slot machines and other card games in the comfort and seclusion of one's own home, thanks to modern technology, has contributed to the social acceptance of these pastimes.

Despite the country's seeming love/hate connection with gambling, consumers can now access enjoyable games during downtime more efficiently than ever, thanks to technological improvements.

The growing number of online casino sites in India may be attributed mainly to the country's rising internet and mobile device usage, which gives its people quick access to entertaining games like sports betting, poker, blackjack, and slots. The popularity of top-rated online casino apps in India is also rising due to a younger population; as a result, their market value has reached $1 billion. Indians can now easily play an enjoyable game on their desktop, laptop, tablet, or smartphone instead of going into a land based casino.

The online casino industry is more than a little complicated in India, as it is regulated at a state and federal level. At present, most of its laws are dictated by the Public Gambling Act of 1896, established under British rule.

This industry is not only a source of entertainment but also a means of contributing to the nation's economic growth. Revenue in the online casino market is projected to reach US$0.82bn in 2023. Revenue is expected to show an annual growth rate of 7.86%, resulting in a projected market volume of US$1.11bn by 2027.

Petrochemicals Industry

As India progresses towards becoming a $5 trillion economy by 2024-25, the share of the petrochemical and its derivatives sector shall become even more prominent, considering that it is the backbone of agriculture, infrastructure, manufacturing, and services.

Petrochemical products are integral to modern societies. From the cars we drive to the electronic goods we use to the packaging we need, the importance of petrochemicals is growing even more. Plastics are indispensable in our everyday lives.

The Free Trade Agreements (FTAs) are essential in enhancing exports. FTAs can help attract foreign investment into India's chemical and petrochemical industries. This would lead to the creation of new jobs and the development of new infrastructure, strengthening the industry's ability to connect with the world.

With the ongoing rise of alternative fuels, petrochemicals are set to become the world's primary form of oil consumption. Indeed, according to the International Energy Agency, this industry will account for almost 50% of the growth in demand for oil by 2050.

Then, the Indian petrochemical sector appears to be on the cusp of explosive growth.

Tourism Industry

The tourism industry of India is economically important and is growing rapidly. The World Travel & Tourism Council calculated that tourism generated INR 15 trillion or 5.8% of the nation's GDP in 2022. It supported 80 million jobs, 15% of its total employment.

This gives India the third rank among countries with the fastest-growing tourism industries over the next decade. The ongoing Cricket World Cup has also significantly contributed to this year's numbers. Accommodation searches in Ahmedabad spiked by a staggering 4,000 percent in October, primarily driven by the India-Pakistan match played on 14th October at the Modi Stadium Ahmedabad. International cricket enthusiasts, mainly from the United Kingdom, Australia, and New Zealand, are leading the charge in travel interest during the tournament.

India's cultural richness, diverse landscapes, and historical landmarks make it a sought-after tourist destination. The tourism industry is pivotal in the Indian economy, contributing significantly to employment and foreign exchange earnings. Despite the challenges posed by the COVID-19 pandemic, India's tourism sector is making a resilient comeback.

A renewed focus on safety and sustainable tourism practices is poised to attract travellers worldwide. Initiatives like 'Incredible India' and e-visas are enhancing India's appeal to global tourists.

Tourism is not just about revenue; it serves as a conduit for cultural exchange, fostering understanding and appreciation of India's rich heritage and traditions.

E-commerce and Retail Industry

E-commerce has brought about a revolution in the Indian retail landscape, redefining how Indians shop. With a vast population and increasing internet penetration, online shopping has taken off significantly. Companies like Flipkart, Amazon, and Snapdeal have transformed the retail landscape, making shopping more convenient and accessible. Moreover, e-commerce has created job opportunities in logistics, customer service, and technology.

The impact of online shopping on traditional retail has been profound. Brick-and-mortar stores are adapting to changing consumer behaviour, and the future of retail appears to be a blend of offline and online shopping experiences.

Picture 1 of 5 industries Shaping the Indian Economy

India's e-commerce market continues to expand, offering many opportunities for businesses, investors, and consumers. It remains one of the most dynamic sectors in the Indian economy.

Conclusion

These five industries represent the driving forces behind India's economic transformation. The Information Technology and Software Services sector leads the way in technological innovation, while the Manufacturing and Automotive industry adapts to the global shift towards electric vehicles. Tourism showcases India's rich culture and heritage, while E-commerce and Retail redefine the shopping experience.

Furthermore, the Casino and Online Gambling industry emerges as an entertainment and economic contributor with the availability of top-rated online casino apps in India.

India's economic journey is characterised by dynamism and adaptability, and these industries are integral to its continued narrative of growth and development.

As India embraces change and innovation, its role on the global economic stage is set to expand, ensuring a bright future for the nation.

Isabella Humphrey

Update 22 November 2023