India’s next growth wave: Sunrise sectors that could drive a $30 trillion economy by 2047

As India eyes a $30 trillion GDP by 2047, the question remains: where will this growth come from? At the BT India@100 Summit held on August 8, Rajat Dhawan, Senior Partner at McKinsey & Company, laid out a roadmap centered on 18 “arenas of growth” — interconnected sunrise sectors that could catapult India’s share in global value creation from 1% to 10% over the next two decades. 

“These 18 arenas could drive a third of global GDP growth and up to 80% of global profit pools,” Dhawan said, adding that India has a real shot at transforming its economic trajectory — if it acts decisively. 

Among the standout sectors he identified were electric mobility, semiconductors, urban construction, AI-enabled services, and biopharma. Taking electric mobility as an example, Dhawan noted India’s leadership in two- and three-wheelers, projected battery demand growing 20x, and ripple effects across battery recycling and storage. 

He stressed the importance of shifting from traditional sector thinking to “arenas” that cut across value chains — for example, combining mining, battery technology, electric vehicles, and recycling into one growth ecosystem. 

On the domestic front, sectors like urban construction and e-commerce are poised for exponential growth. “20% of India’s consumption GDP already goes into housing and infrastructure,” Dhawan said, suggesting the country may need to look at building entirely new greenfield cities — akin to China’s urbanization model. 

The conversation also turned to India’s digital push. With over 800 million internet users, but only 25% penetration in e-commerce, Dhawan sees B2B commerce, data centers, cloud infrastructure, and cybersecurity as huge opportunities. “This is one space where we should aim for global leadership,” he added. 

Even amid global trade tensions and the recent 50% US tariff on Indian goods, Dhawan remained optimistic: “Even in the worst-case scenario, the impact would be 0.2% of GDP. The bigger question is: how do we build competitiveness and win globally in the arenas of tomorrow?” 

When asked what excites him most about the Indian economy, Dhawan pointed to its entrepreneurial spirit and bold ambition, especially in the startup ecosystem. From space and defense to bio-ethanol, specialty chemicals, and biologics, Indian startups are now pushing boundaries in previously overlooked domains. 

He urged businesses to think globally, not just locally. “If we stay in the India-for-India mindset, we risk repeating the last 15 years. Our participation in global value creation must rise to 10%,” he said.