Finance Minister Nirmala Sitharaman announced that India aims to increase the manufacturing sector’s share in GDP from 12% to 23% over the next 20 years.
This push is intended to boost job creation and economic growth.
The focus is on 14 sunrise sectors, including semiconductors, renewable energy components, medical devices, batteries, and labour-intensive industries like leather and textiles.
India and the Sunrise Sectors:
- India aspires to become a $32 trillion developed economy by 2047.
- Sunrise sectors, as emphasized by G20 Sherpa Amitabh Kant, are central to this mission.
What are Sunrise Sectors?
- Emerging industries with rapid growth potential, high investor interest, and early-stage innovation.
- Typically driven by technological advancement, government policy, and changing global demands.
Evolution of Sunrise Sectors in India
- 1990s: IT, Telecom, Banking, FMCG.
- 2000s: Pharma, Retail, Petrochemicals, Life Sciences.
- 2020s & Beyond: EVs, Semiconductors, AI, Green Hydrogen, Space, Healthcare, Biotechnology, etc.
Key Sunrise Sectors and Their Potential
1. Electronics & Semiconductors
- Market size to reach $300 bn by FY26.
- PLI & Semicon India schemes with ₹76,000 Cr outlay.
- Aims to reduce import dependency and boost exports.
2. Electric Vehicles (EV)
- 30% EV adoption target by 2030.
- Over 3 lakh EV two-wheelers registered (FY24).
- FAME II and PLI for Advanced Chemistry Cells promote affordability and domestic battery production.
3. Renewable Energy
- Target: 500 GW non-fossil fuel capacity by 2030.
- Key missions: National Green Hydrogen Mission, Offshore Wind Policy.
- Strong investment interest due to favorable regulations.
4. Agro & Food Processing
- Boosted by e-NAM, Kisan Rath, and PLI Scheme for Food Processing.
- Promotes export-oriented value addition.
5. Healthcare & Pharmaceuticals
- Medtech sector to reach $50 bn by 2025.
- Ayushman Bharat is the world’s largest public healthcare program.
- India is a global leader in generics and vaccine production.
6. Artificial Intelligence & Technology
- AI integrated into healthcare, finance, education, and agriculture.
- Fuels innovation and productivity in legacy sectors.
Potential Impacts of Sunrise Sectors
- Economic Growth: Innovation and employment generation.
- Sustainability: Clean energy, green mobility, eco-friendly manufacturing.
- Global Competitiveness: Positioning India as a tech-driven export hub.
- Industrial Modernization: Digitization and productivity gains.
- Economic Resilience: Diversification reduces dependence on traditional sectors.
Challenges
| Category | Key Issues | Example |
| Technological Gap | India is 5–7 years behind global standards in EVs & solar | China leads in EV battery tech |
| Infrastructure Deficit | Inadequate EV charging & clean-tech infrastructure | Limited R&D support |
| Policy Bottlenecks | Delays in regulatory clearances, insufficient incentives | Green energy projects face procedural delays |
| Financial Constraints | High capital cost & low skilled manpower | Semiconductor fabs need massive investment |
| Climate Risks | Agriculture faces erratic weather | Affects agritech success |
| Geopolitical Instability | Trade & supply disruptions | Russia-Ukraine war, Israel conflict |
Way Forward
- R&D Focus: More funding for clean tech, semiconductors, and AI.
- Robust Policy Ecosystem: Faster clearances, better subsidies, and regulatory coherence.
- Public-Private Partnerships: Leverage global expertise and domestic market.
- Skilling Workforce: Invest in technical education for industry-ready manpower.
- Green Infrastructure: Expand EV charging, renewable grids, and logistics.
Sunrise sectors are not just economic opportunities but a strategic imperative. A focused, innovative, and collaborative approach is essential for India to lead in global technology and sustainability while achieving its 2047 development vision.
