India's economy is projected to grow by 6.5% in the fiscal year 2024-25 and 7% in 2026. This growth is expected to surpass that of China, with the IMF predicting that India may become the world's third-largest economy by 2027. The top-performing sectors in 2025 are anticipated to be banking, healthcare, renewable energy, and real estate, while consumer goods, utilities, and chemicals are expected to recover significantly from 2024.
In terms of investments, India remains an attractive destination, offering global companies substantial scale, skilled talent, and advanced technology. Micro, small, and medium enterprises (MSMEs) will be crucial in creating jobs, driving income growth, enhancing capabilities, and establishing ecosystems necessary for sustained growth in consumption, manufacturing, and infrastructure development.
Key industries likely to attract foreign investors in India in 2025 include healthcare and insurance, fintech, renewable energy and climate technology, electric vehicles and automobiles, IT and services, real estate and infrastructure, fast-moving consumer goods (FMCG), as well as research and development (R&D), tech innovation, and artificial intelligence (AI). These sectors experienced significant growth in 2024, facilitated by relaxed foreign direct investment (FDI) policies and production-linked incentive (PLI) schemes aimed at strengthening industry-specific capacities.
India's digital economy is expected to continue drawing investment, as technology-driven solutions are sought to enhance people’s lives, governance, and enterprise operations. The increasing demand for online products and services reflects the growing purchasing power of India's non-metropolitan (tier-2 and tier-3) cities. The digital economy, which accounted for 4-4.5% of India's GDP in 2014, has now risen to 11%. The central government projects that the digital economy will comprise more than 20% of Indian GDP by 2026.
The United Nations has designated 2025 as two significant international years:
1. International Year of Quantum Science and Technology: This initiative recognizes the transition of quantum science from experimental phases to practical applications. The aim is to enhance science education and national capacities in fundamental sciences. Quantum mechanics, a key theory in physics, describes the behavior of nature at the subatomic level and has driven advancements in chemistry, biology, and material science. In 2024, the Indian government made substantial progress with the Anusandhan National Research Foundation (ANRF) to promote research and development, fostering a culture of innovation throughout universities, colleges, research institutions, and R&D laboratories.
2. International Year of Cooperatives: The theme for this year is "Cooperatives Build a Better World," emphasizing the sector's role in shaping a brighter future for communities. Indian values and ethos are the driving force behind this theme, focusing on socio-economic development through cooperatives.
Most business leaders are optimistic about the economy and their companies, planning for growth and innovation in 2025. Captains of the Indian industry have their own views for 2025.
Leading player in the special chemical market, Epigral Limited has seen significant improvement in revenue in 2024. Buoyant by the positive outlook the company declared to expand their CPCV resin facility to 150000 TPA which will be world largest by 2027. Maulik Patel, Chairman and Managing Director of Epigral Limited quotes,
The Indian chemical sector is poised for significant growth, with projections showing that the market size will increase notably from US$ 220 billion in 2022 to an impressive US$ 300 billion by 2025. Importantly, the year 2024 will be a critical moment for the chemical industry, as it is expected to experience a substantial year-over-year increase in production levels, surpassing those of 2023. There is a revival of demand for a few applications of chemicals, and this positive trend is expected to continue, driven by the end of the destocking cycle, especially within the specialty chemicals segment.
Maulik Patel – Chairman and Managing Director of Epigral Ltd
Looking ahead, the Indian specialty chemicals industry is projected to reach around US$ 50 billion by 2025, reflecting robust demand and growth potential. Indian demand for various chemicals is increasing notably, as consumers seek quality products across multiple applications in diverse industries. According to the American Chemistry Council (ACC), a global expansion in chemical production is anticipated, with an estimated increase of 3.4% in 2024, followed by a further estimated rise of 3.5% in 2025. This optimistic forecast indicates a significant recovery from the modest 0.3% growth recorded in 2023.
At Epigral, a company strategically focused on the domestic market, we are currently witnessing strong demand for specialty chemicals, including CPVC and ECH. This heightened demand is primarily driven by several dynamic and expanding sectors, such as real estate, automotive, and renewable energy. We have an optimistic outlook for 2025, anticipating remarkable growth in both production volume and market value. As the Indian market continues to grow, and evolve, we are well-positioned to capitalize on these opportunities and uphold our commitment to meeting the needs of our customers in a changing economic landscape. “
Vinay Thadani- CEO at Vishal Fabric Limited
In response to an increasingly eco-conscious world, the Indian textile industry is taking significant strides toward sustainability. As consumers become more aware of environmental issues, manufacturers are adopting eco-friendly practices that prioritize sustainability. Starting 2025, we anticipate that sustainable textiles, organic fibers, and environmentally friendly dyes will not only be niche products but standard offerings in the market. The emergence of sustainable brands and the increasing demand for eco-conscious products are driving Indian manufacturers to integrate green technologies into their production processes.
Recently, the Government of Gujarat announced the Gujarat Textile Policy 2024, a forward-thinking initiative designed to enhance Gujarat's standing within the global textile value chain. This policy not only aims to attract international investment but also fosters innovation and sustainability in domestic textile production.
As a key player in this dynamic industry, Vishal Fabric Limited recognizes the vast potential that lies ahead as the government introduces various supportive measures, including credit-linked incentives, power subsidies, and payroll assistance. We are enthusiastic about the future and are committed to expanding our range of sustainable products in the coming year. This commitment positions us at the forefront of not only meeting consumer demands but also contributing to a greener planet.”
As the Indian government is continuously improving road connectivity throughout the length and breadth of the country, passenger movement across tier 2 and 3 cities along with villages becomes crucial for overall and balance economic growth. As we shift our economic development with sustainable development goals, the passenger movement through public transportation segment significantly reduces the pollution as well burden of private vehicles from road.
India currently has less than 0.3 buses per 1,000 people, significantly lower than the 1.3 buses in countries like Turkey, Brazil, China, and Japan. Government initiatives to improve road safety and connectivity are set to transform public transportation, especially bus services, in the coming years. Better access to public transport in remote areas is already driving economic growth, as seen in eastern India, where rural and semi-urban towns are contributing more to the national GDP.
At Chartered Speed, we recognize the critical role of public transport in transforming lives and economies. In 2024 we have doubled our fleet size to 2300 buses and are looking forward to robust growth in passengers’ movement in coming years. We are not only moving people but also creating thousands of jobs across driving, maintenance, administration, and tech-enabled services, uplifting communities across India.
As we look to 2025, our focus will be on enhancing passenger safety and transitioning to sustainable transport. Aligning with government goals, we plan to expand our EV fleet and phase out diesel buses, while exploring biofuels and hydrogen-powered vehicles to reduce dependence on internal combustion engine (ICE) vehicles. Chartered Speed remains committed to delivering connectivity, employment, and greener solutions," said Sanyam Gandhi, Director, Chartered Speed.
The global community is currently confronting a climate emergency, emphasizing the need for countries to collaborate effectively in tackling pressing environmental issues. Many nations are actively working towards increasing the contribution of renewable energy to their Gross Domestic Product (GDP). In 2024, India notably expanded its renewable energy capacity by adding over 90 gigawatts (GW) of solar energy to its power generation portfolio. Vinay Thadani -CEO and Director of Grew Energy Pvt ltd quotes “India's energy sector is on the brink of transformative growth, particularly in the areas of renewable energy, smart grid technology, and electric vehicles by the year 2025. The nation is projected to add a remarkable 500 gigawatts (GW) of renewable energy capacity to its existing grid. Notably, approximately 60% of this new capacity is expected to come from solar power, highlighting India’s commitment to harnessing its abundant sunlight.
As of November 2024, the country is anticipated to have already installed around 94.17 GW of renewable energy capacity, signalling a robust pace of development in this sector. The renewable energy domain in India is poised to attract substantial investment, with forecasts suggesting that it will exceed $250 billion over the next few years. Specific areas of investment include photovoltaic (PV) projects, which are estimated to secure around $15.5 billion, while the battery manufacturing segment is projected to garner approximately $2.7 billion within a similar timeframe of 1 to 2 years.
Vinay Thadani - CEO & Director of Grew Energy
At Grew Energy, we are enthusiastic about our ambitious plans to expand our operational capacity at our existing plant in Jaipur. Concurrently, we are gearing up for the commissioning of a new facility in Jammu, scheduled for completion in 2025. These expansions will not only enhance our production capabilities but also allow us to better serve the growing demand for renewable energy solutions globally, especially the US Market. Overall, we foresee a strong trend of capacity buildup within the solar energy sector, as companies are expected to increase investments in research and development in 2025. This collective effort will be crucial in advancing technology and fostering innovation, ensuring India remains at the forefront of the global energy transition.”
As we reflect on the business narratives shaping 2024, embracing a vision for the new year that prioritizes a more inclusive work culture is essential. This involves fostering an environment where diversity is celebrated, and everyone feels valued and empowered to contribute their unique perspectives. Furthermore, we must also deepen our commitment to respecting the planet, integrating sustainable practices into our operations, and acknowledging our responsibility toward environmental stewardship. Coexistence within our teams and with the broader community will be vital in driving collective success. By prioritizing collaboration and understanding among different stakeholders, we can unlock innovative solutions that will not only enhance our organizational resilience but also contribute to global growth. This holistic approach will ensure that businesses thrive while positively impacting society and the environment.
