India Inc could unlock $1.7–2 trillion in revenues by 2030 across 18 high-growth, high-dynamism sectors — or “arenas”— identified by McKinsey & Company in its latest report, ‘India’s Future Arenas: Engines of Growth and Dynamism.’The report noted that these sectors generated $690 billion in 2023 and could play a pivotal role in expanding India’s global economic footprint as it targets 8-10% share of global GDP by 2040, up from 3.4% in 2023.
McKinsey categorised these into nine “global arenas,” where Indian firms could gain disproportionate global scale; and nine “national arenas,” which are rooted in India’s domestic priorities and strategic goals.
Global arenas include fast-scaling sectors like semiconductors, e-commerce, cloud services, electric vehicles and batteries, and AI. For instance, India’s data centre capacity is growing at 26% annually, with investments expected to reach $5.7 billion by 2026, while e-commerce is forecast to contribute 15-17% of retail sales by 2030.National arenas reflect India’s development trajectory, with sectors like urban construction, travel & tourism, auto components, and industrial electronics set to benefit from demographic shifts and infrastructure expansion. India’s urban population is expected to hit 600 million by 2030, driving demand across construction and services.Also Read: India needs to become a ‘Daudta Economy’, says veteran deal-maker Vallabh Bhanshali McKinsey said realising this potential will require “cross-sector collaboration, decisive corporate action, and supportive policies.” The 18 sectors were selected based on innovation-led disruption, sustained investment flows, and large addressable markets.While Indian companies played a limited role in shaping global growth sectors between 2005 and 2020, the report argued that they are now better positioned to lead in these new arenas — paving the way for India’s ambition to become a developed economy by 2047.(Edited by : Shoma Bhattacharjee)First Published: Jun 19, 2025 7:44 PM IST
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