emirates7 - India’s ongoing economic transformation is positioning the country as a major global growth hub in the years ahead, according to a recent report by Dubai Chambers released during the Dubai-India Business Forum.
The report identifies several high-potential sectors in India that offer attractive investment opportunities for UAE businesses, especially as bilateral economic ties between the two nations continue to deepen.
India boasts Asia’s second-largest new car market, following China. Annual vehicle sales have rebounded strongly over the past three years and are expected to grow at a compound annual growth rate (CAGR) of 3.3 percent, reaching around 5.2 million units by 2029.
Although electric vehicle (EV) sales are forecast to grow rapidly—at a CAGR of 16 percent from 2024 to 2029—they will still represent only 4 percent of all new car sales by the end of the period.
With a large population and rising consumer spending, India is also a vital market for retailers and luxury brands. Household consumption makes up 57.5 percent of the country’s GDP, making the retail sector a major driver of both employment and economic expansion.
The report notes that retail and e-commerce growth is moving beyond large metropolitan areas to smaller cities, where increased disposable income and widespread smartphone use are opening new avenues for growth.
India’s financial services sector has also shown remarkable resilience, with banks achieving record profits for three consecutive years (2021–2023) and a steady decline in non-performing loans. This trend is expected to continue, with further gains in profitability anticipated from 2025 to 2029, driven by strong growth in retail banking loans.
The insurance industry is poised for robust expansion, fueled by a growing middle class, innovative product offerings, and favorable regulatory changes. Real-term insurance premiums are projected to grow by 7.1 percent from 2025 to 2029, making India the fastest-growing insurance market among G20 nations.
Meanwhile, the fintech sector is playing a transformative role, reshaping traditional financial services by providing alternative channels for credit, insurance, and investments. India is currently home to the world’s third-largest fintech ecosystem by the number of active companies, with an adoption rate of 87 percent—well above the global average of 67 percent.
Healthcare spending is also on the rise, expected to increase at a CAGR of 9 percent between 2025 and 2029. This growth is being driven by higher government investment and greater uptake of private health insurance. India is emerging as a leader in digital healthcare, with strong public-private collaboration in areas such as AI, telemedicine, and medical diagnostics.
On the infrastructure front, India is undertaking a massive national development programme that includes over 13,000 projects worth more than $2.3 trillion. These span key sectors such as transport, energy, and logistics infrastructure.
Initiatives like the National Infrastructure Pipeline (NIP), which comprises 13,214 projects, are playing a pivotal role in facilitating large-scale infrastructure development. According to BMI Infrastructure Key Projects Data, India’s project pipeline is particularly strong in industrial construction, power generation, transportation, and logistics.
These industrial initiatives offer considerable potential for strategic collaboration, especially for UAE companies specializing in technology, infrastructure, and related sectors.
The report identifies several high-potential sectors in India that offer attractive investment opportunities for UAE businesses, especially as bilateral economic ties between the two nations continue to deepen.
India boasts Asia’s second-largest new car market, following China. Annual vehicle sales have rebounded strongly over the past three years and are expected to grow at a compound annual growth rate (CAGR) of 3.3 percent, reaching around 5.2 million units by 2029.
Although electric vehicle (EV) sales are forecast to grow rapidly—at a CAGR of 16 percent from 2024 to 2029—they will still represent only 4 percent of all new car sales by the end of the period.
With a large population and rising consumer spending, India is also a vital market for retailers and luxury brands. Household consumption makes up 57.5 percent of the country’s GDP, making the retail sector a major driver of both employment and economic expansion.
The report notes that retail and e-commerce growth is moving beyond large metropolitan areas to smaller cities, where increased disposable income and widespread smartphone use are opening new avenues for growth.
India’s financial services sector has also shown remarkable resilience, with banks achieving record profits for three consecutive years (2021–2023) and a steady decline in non-performing loans. This trend is expected to continue, with further gains in profitability anticipated from 2025 to 2029, driven by strong growth in retail banking loans.
The insurance industry is poised for robust expansion, fueled by a growing middle class, innovative product offerings, and favorable regulatory changes. Real-term insurance premiums are projected to grow by 7.1 percent from 2025 to 2029, making India the fastest-growing insurance market among G20 nations.
Meanwhile, the fintech sector is playing a transformative role, reshaping traditional financial services by providing alternative channels for credit, insurance, and investments. India is currently home to the world’s third-largest fintech ecosystem by the number of active companies, with an adoption rate of 87 percent—well above the global average of 67 percent.
Healthcare spending is also on the rise, expected to increase at a CAGR of 9 percent between 2025 and 2029. This growth is being driven by higher government investment and greater uptake of private health insurance. India is emerging as a leader in digital healthcare, with strong public-private collaboration in areas such as AI, telemedicine, and medical diagnostics.
On the infrastructure front, India is undertaking a massive national development programme that includes over 13,000 projects worth more than $2.3 trillion. These span key sectors such as transport, energy, and logistics infrastructure.
Initiatives like the National Infrastructure Pipeline (NIP), which comprises 13,214 projects, are playing a pivotal role in facilitating large-scale infrastructure development. According to BMI Infrastructure Key Projects Data, India’s project pipeline is particularly strong in industrial construction, power generation, transportation, and logistics.
These industrial initiatives offer considerable potential for strategic collaboration, especially for UAE companies specializing in technology, infrastructure, and related sectors.