Indian businesses have consistently demonstrated resilience, innovation, and adaptability, emerging as key players in the global economy. With a diverse industrial base, a rapidly growing startup ecosystem, and a highly skilled workforce, India is well-positioned to shape the future of international commerce. As of 2025, Indian enterprises are making significant strides across multiple industries, from technology and pharmaceuticals to manufacturing and renewable energy. Let’s explore how Indian businesses are performing on the world stage and the challenges they must overcome.
The Rise of India’s Startup Ecosystem
India has rapidly become one of the world's leading startup hubs, driven by government initiatives such as Startup India, Digital India, and Make in India. As of March 2025, there are over 159,157 DPIIT-recognized startups, making India the third-largest startup ecosystem globally, after the US and China. The country has also produced over 100 unicorns—startups valued at over $1 billion—highlighting its global competitiveness.
Despite this growth, challenges remain. A significant number of Indian startups struggle with regulatory complexities, access to funding, and infrastructure bottlenecks. While the Union Budget 2025 introduced measures to support the startup ecosystem, sustained efforts are needed to address these issues and maintain momentum.
India’s IT Dominance in the Global Market
The Indian IT and Business Process Management (BPM) sector remains a pillar of India’s global influence. In FY 2023, the industry contributed 7.5% of India's GDP, and this is projected to reach 10% by 2025. Companies such as TCS, Infosys, Wipro, and HCL Technologies have established themselves as global leaders in cloud computing, artificial intelligence, cybersecurity, and digital transformation.
According to NASSCOM, India’s IT sector is expected to generate $282.6 billion in revenue in FY 2025, with projections to surpass $300 billion by FY 2026. The growing demand for generative AI (GenAI) and automation is set to increase productivity by up to 45% in the next five years. However, economic uncertainties and foreign investor sell-offs present ongoing challenges to sustaining this growth.
Manufacturing Industry: Strengthening India’s Global Presence
India's manufacturing sector is undergoing a transformation, driven by the Make in India initiative and the Production-Linked Incentive (PLI) scheme. India is positioning itself as an alternative manufacturing hub to China, particularly in electronics, automobiles, and defense.
Companies such as Apple, Samsung, and Tesla are expanding their production bases in India. Apple’s supplier Foxconn has committed $700 million to set up a new iPhone plant in Karnataka, reflecting growing global confidence in India’s manufacturing capabilities. However, infrastructure bottlenecks, bureaucratic red tape, and inconsistent policy implementation remain hurdles that must be addressed to sustain competitiveness.
India’s Pharmaceutical Industry: The World’s Pharmacy
India has earned the reputation of being the “Pharmacy of the World,” supplying over 50% of global vaccine demand and 40% of generic medicines to the US alone. The industry, valued at $50 billion in 2023, is expected to reach $130 billion by 2030.
Leading pharmaceutical companies such as Sun Pharma, Dr. Reddy’s, Cipla, and Biocon continue to expand their global footprint, providing affordable healthcare solutions worldwide. The COVID-19 pandemic showcased India's pharmaceutical strength, with firms like Serum Institute of India and Bharat Biotech playing crucial roles in vaccine distribution. However, the industry faces challenges such as increasing regulatory scrutiny and pricing pressures in global markets.
Renewable Energy: Powering a Sustainable Future
India is emerging as a global leader in renewable energy, ranking as the third-largest producer of renewable energy worldwide. The sector is expected to reach $1 trillion by 2030, fuelled by ambitious government policies and foreign investments.
With a strong focus on solar, wind, and hydroelectric power, India’s renewable energy capacity increased to 168.9 GW in 2023. The government aims to achieve 500 GW of non-fossil fuel capacity by 2030, in line with its Net Zero by 2070 goal. Companies like Adani Green Energy, Tata Power, and ReNew Power are leading large-scale renewable projects. However, grid infrastructure constraints and financing challenges remain key obstacles to accelerated growth.
India’s Financial & E-Commerce Boom
India’s fintech and e-commerce sectors are rapidly expanding, transforming the global digital economy. The fintech industry is projected to reach $150 billion by 2025, driven by innovations such as Unified Payments Interface (UPI), which processed over $10 trillion in transactions in 2023.
The e-commerce industry, led by Amazon India, Flipkart, and Reliance JioMart, is expected to surpass $350 billion by 2030. With a large consumer base and increasing internet penetration, India is a lucrative market for global businesses. However, regulatory challenges and concerns over data privacy and digital taxation need to be addressed for sustained growth.
India’s Economic Potential
India’s rapid economic transformation, coupled with its young workforce, strong consumer base, and digital revolution, presents immense global opportunities. Goldman Sachs predicts that India will become the world’s second-largest economy by 2075, surpassing the US.
However, for India to sustain its growth trajectory, it must address regulatory inefficiencies, infrastructure gaps, and skill mismatches. Former RBI Governor Raghuram Rajan has emphasized the need for structural economic reforms and improved ease-of-doing-business policies to maintain this momentum.
With strategic policy interventions and a focus on innovation, Indian businesses are poised to solidify their place as global economic powerhouses. As enterprises scale internationally, India’s influence in the world economy is set to grow, making it a crucial player in the 21st-century global market.