UAE investors eye opportunities in India's rapidly growing sectors
Several promising Indian sectors present strategic opportunities for UAE investors amid increasing economic cooperation between the two nations.
India is home to Asia's second-largest new car market after China, with annual unit sales posting a strong recovery over the past three years. The segment is expected to expand at a compound annual growth rate (CAGR) of 3.3 percent, with annual sales approaching 5.2 million units during 2024-29.
Electric vehicles sales are projected to increase at a CAGR of 16 percent between 2024-29, but will account for only 4 percent of total new-car sales
by 2029.
With its large population, India is a substantial consumer market and a key attraction for retailers and luxury brands. Private consumption accounts for 57.5 percent of GDP, making the retail sector a key pillar of employment and economic growth.
The report highlights that retail and e-commerce expansion is shifting beyond major urban centres to smaller cities, where rising purchasing power and high smartphone penetration are unlocking new growth opportunities.
India's financial services sector has shown a strong recovery in recent years, with banks recording three consecutive years of record profits (2021–23). This positive momentum is expected to continue, with non-performing loans (NPLs) steadily declining.
Profitability is likely to rise further between 2025 and 2029, supported by robust growth in retail banking lending.
India's insurance market is set for strong growth, driven by an expanding middle class, innovation, and regulatory support. Total insurance premiums are forecast to increase by 7.1 percent in real terms from 2025–29, positioning India as the fastest-growing insurance market among G20 countries.
The report highlights that the financial technology (fintech) sector is continuing to disrupt traditional financial services, emerging as a key channel for credit,
insurance, and investment products.
India currently hosts the world's third-largest fintech ecosystem by number of operating entities, with a fintech adoption rate of 87 percent. This is significantly higher than the global average of 67 percent.
Total healthcare spending in India is projected to grow at a 9 percent CAGR between 2025 and 2029, driven by increased government spending and greater adoption of private health insurance. India is a prominent digital healthcare market, witnessing public-private partnerships in areas such as artificial intelligence, telemedicine, and medical imaging.
Under its national infrastructure programme, India is currently undertaking over 13,000 projects valued at over $2.3 trillion, spanning roads, bridges, power plants, railways, and ports.
Infrastructure-specific programmes are also creating a significant impact, particularly the National Infrastructure Pipeline (NIP), which supports infrastructure project development. The NIP currently includes 13,214 projects with combined investments of $2.3 trillion.
According to BMI Infrastructure Key Projects Data, India holds large project pipelines in industrial construction, power, road, and rail infrastructure.
Industrial sectors are a high priority within these ongoing projects, creating opportunities for strategic partnerships with UAE technology and infrastructure companies.
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