India eyes $2 trillion in revenues from 18 high-potential sectors by 2030: McKinsey

India could unlock up to $2 trillion in revenue from 18 high-growth arenas by 2030, nearly tripling the $690 billion recorded in 2023, according to a new report by the McKinsey Global Institute. These sectors—ranging from electric vehicles to semiconductors, and from AI software to tourism—could contribute nearly 30% of India’s incremental GDP by 2040, paving the way for its ambition to become a developed economy by 2047.

The report, titled “India’s Future Arenas: Engines of Growth and Dynamism,” identifies nine global and nine national arenas poised for explosive growth. These sectors combine high innovation potential, sustained investments, and expanding addressable markets—critical ingredients for economic transformation.

Among the national arenas, urban construction, travel and tourism, e-commerce, renewables with storage, and cloud services stand out. For instance, urban construction could grow from $170–190 billion in 2023 to nearly $490 billion by 2030, driven by rapid urbanisation and demand for housing and infrastructure. Meanwhile, India’s travel and tourism sector—currently valued at $170 billion—is forecast to more than double, boosted by domestic demand and niche inbound tourism such as medical and spiritual travel.

On the global front, India is emerging as a serious contender in sectors like auto components, cybersecurity, AI software and services, and space technology. The country’s space sector, fuelled by the success of Chandrayaan-3 and rising private investment, aims to quadruple its global market share by 2033. Similarly, cybersecurity is set to grow rapidly amid rising global digital threats, with the Indian market already valued at $30 billion.

The report classifies opportunities into four archetypes. The "Build for India" category includes foundational sectors like semiconductors and nuclear fission, where India must strengthen domestic capabilities. In “Pursue accelerated scale-up,” sectors such as cloud services and e-commerce are ripe for national expansion. Sectors like EVs, aerospace, and biopharma fall under “Build global competitiveness,” while “Achieve global leadership” includes arenas where India has strong capabilities and global potential, such as auto components and AI.

However, realising these gains will require targeted action. McKinsey recommends boosting investment in R&D, improving regulatory support, enabling public-private partnerships, and developing digital and physical infrastructure. Workforce development and IP creation will also be crucial in achieving scale and quality in emerging sectors.

With sustained reforms and strategic collaboration across industry and government, India stands on the cusp of a historic transformation, the report said. “Breakthroughs in these arenas could collectively propel India toward its aspiration of global economic leadership,” the report concludes.