Construction, travel among 18 sectors to ring in $2 trillion revenue

New Delhi: Urban construction, travel & tourism, auto components and renewables with storage system are among the 18 transformative sectors that could collectively generate $1.7-2 trillion in revenues for India by 2030, according to a McKinsey report released Thursday.

In 2023, these sectors accounted for $690 billion in revenue.

The 18 sectors could contribute to around 30% of India's incremental gross domestic product (GDP) by 2040, supporting the nation's goal of becoming a developed economy by 2047, the report said. Urban construction alone is expected to be the highest revenue making sector, with projected revenue of $400-490 billion by 2030, according to the company estimates. "Together, the arenas represent powerful focus areas for India's next economic leap as they could capture approximately 30% of India's incremental GDP by 2040," said Rajat Dhawan, India managing partner, McKinsey & Company.


"Although precise trajectories are difficult to forecast, breakthroughs in these arenas could propel India toward its aspiration of global economic leadership," he added.

Other sectors include aerospace and defence, Bio-to-X, medical devices, biopharma and industrial electronics, according to the report titled 'India's Future Arenas: Engines of Growth and Dynamism'. Key global arenas or transformative sectors are electric vehicles and batteries, semiconductors, ecommerce, cybersecurity and cloud services. -Our Bureau

"Each arena represents a certain strategic position for India, contingent upon the extent of India's capabilities and the market focus on either India alone or on broader world markets, thereby requiring a differentiated playbook to win," said Bhavesh Mittal, partner, McKinsey & Company.

According to McKinsey, the 18 sectors offer four types of growth opportunities for India-building global competitiveness, achieving global leadership, scaling for India's domestic market and accelerating scale-up efforts.

Four sectors-semiconductors, robotics, nuclear fission and industrial electronics-provide opportunity for a largely India-for-India market, it added.

The 18 sectors were identified based on three factors: technology or business model stepchange, escalatory investment dynamics and cultivation of a large and growing addressable market.