India is positioned to unlock a $1.7–2 trillion revenue opportunity by 2030 across 18 high-growth sectors, according to a recent McKinsey & Company report titled "India’s Future Arenas: Engines of Growth and Dynamism".

This projection marks a near tripling of the $690 billion these sectors generated in 2023 and could account for nearly 30% of India’s incremental GDP by 2040, significantly advancing the country’s ambition to become a developed economy by 2047.

The report identifies these 18 sectors as pivotal engines for India’s next economic leap, combining high innovation potential, strong investment dynamics, and expanding addressable markets.

Key high-potential sectors include electric vehicles and batteries, artificial intelligence (AI) software and services, e-commerce, cloud computing, semiconductors, medical devices, biopharma, aerospace and defence, and the bio-to-X economy, which leverages biomass for lower-carbon products.

Other transformative arenas highlighted are cybersecurity, industrial electronics, renewables with storage, robotics, urban construction, auto component manufacturing, space, nuclear fission, and travel and tourism.

Urban construction stands out as the largest projected contributor, with revenues expected to grow from $170–190 billion in 2023 to $400–490 billion by 2030, fuelled by rapid urbanisation and infrastructure demand. The travel and tourism sector is also set to more than double, driven by both domestic and niche inbound tourism such as medical and spiritual travel.

McKinsey’s strategic framework divides these sectors into four pathways based on India’s current capabilities and market focus:

Building foundational strength in nascent, domestically focused sectors like semiconductors, robotics, industrial electronics, and nuclear fission.

Rapid scaling in sectors with stronger capabilities and domestic relevance, such as renewables with storage, e-commerce, cloud services, tourism, and urban construction.

Sharpening global competitiveness in emerging sectors like electric vehicles, batteries, medical devices, biopharma, aerospace, and bio-based technologies.

Pursuing global leadership in areas where India already has strong capabilities and international reach, such as auto components, space, AI, and cybersecurity.

The report emphasises that each sector’s strategy must be tailored to its maturity and market orientation, with the ultimate goal of capturing a significant share of both domestic and global markets. If India successfully executes on these differentiated play-books, these 18 sectors could collectively drive a transformative phase of economic growth, consolidating the country’s status as a major global economic force by 2040.

Based On A Mint Report