India’s Sunrise Sector

Syllabus :GS 3/Economy 

In News

• India’s G20 Sherpa, Amitabh Kant emphasized that India needs to excel in “sunrise sectors” to achieve the goal of becoming a developed nation and a USD 32 trillion economy by 2047.

About Sunrise sectors

• It refers to a rapidly growing sector in its early stages with high potential for expansion. 
• These industries experience significant growth, a rise in startups, and attract substantial venture capital funding, making them appealing to investors for long-term growth prospects.

Sunrise sectors in India : Potential 

• Electronics and Semiconductors: India’s electronics industry is driven by initiatives like the PLI Scheme and SEMICON India Program.
  • The semiconductor market is expected to triple by 2026, with a production value of $300 billion by FY26.
  • Government schemes like the Modified Scheme for Semiconductor Fabs provide significant financial incentives.
  • India is emerging as a global hub for electronics and semiconductor manufacturing.
• Electric Vehicles (EV): India is promoting electric mobility with initiatives like FAME II and 100% FDI allowance.
  • The EV sector has over 12,000 operational charging stations and is expected to see massive growth.
  • The PLI Scheme for Advanced Chemistry Cells supports local battery manufacturing, driving down costs.
  • India’s EV sector offers opportunities in manufacturing and infrastructure development while contributing to sustainability.
• Renewable Energy: India aims to achieve 500 GW of non-fossil fuel-based energy by 2030.
  • Initiatives like the National Green Hydrogen Mission and Offshore Wind Energy targets attract investment in green technologies.
  • The sector benefits from favorable regulatory frameworks, R&D promotion, and international collaboration.
  • India offers substantial opportunities for investors in the clean energy transition.
  • India’s solar panel manufacturing industry is 5-7 years behind global standards.
• Agro and Food Processing (A&FP): Programs like Pradhan Mantri Kisan Sampada Yojana and liberalized FDI norms create investment opportunities in agriculture and food processing.
  • Schemes like the PLI Scheme for Food Processing Industry incentivize investment in food infrastructure.
  • India’s agricultural sector offers potential for value addition, exports, and food security.
• Healthcare : India’s healthcare and pharmaceutical sectors are poised for growth, with the medtech industry expected to reach $50 billion by 2025.
  • Initiatives like Ayushman Bharat focus on improving healthcare accessibility and affordability.
• Pharmaceuticals: India’s pharmaceutical industry, known for vaccine production and generic medicines, offers robust investment opportunities.
  • The sector benefits from favorable conditions like 100% FDI allowance and supportive infrastructure.
• Artificial intelligence :   AI and ML are transforming industries globally, with India well-positioned to capitalize on these technologies.
  • They  are being applied across industries such as healthcare, finance, education, and manufacturing, fostering innovation and efficiency.

Challenges Facing Sunrise Sectors in India:

•  Inconsistent policy implementation and frequent changes create uncertainty.
  • Delays in approvals and fragmented regulations hinder investment and growth.
• Insufficient infrastructure, especially EV charging stations and renewable energy grid integration.
• Lack of substantial investments in research and development (R&D).
• Shortage of specialized talent in fields like AI, renewable energy, and EVs.

Conclusion and Way Forward 

• India’s sunrise sectors offer compelling investment opportunities due to strong human resources and supportive government policies, including 100% FDI under automatic routes. 
• These sectors provide robust growth potential, economic prosperity, and avenues for sustainable development, making them attractive destinations for investment.
• Therefore overcoming regulatory, infrastructure, technological, and financial challenges is crucial for unlocking the potential of India’s sunrise sectors. 

Source :ET