Key Business Sector 1


Smart Cities

Key Industries Overview

PM Modi’s Smart Cities Mission aims to transform 100 cities with major development and infrastructure projects. There are attractive growth prospects for global investors in areas such as affordable homes, urban solutions and new railway corridors.

As Singapore has the technological know-how and expertise in many of these key areas, India provides the perfect market where Singapore companies can scale up much further and more effectively than they can at home.

With 100 smart cities to be developed as part of the Smart Cities Mission, there are myriad opportunities for Singaporean companies in providing energy, environment, ICT, building and governance solutions. Find out about the projects available in the Smart Cities Proposals here.

Consumer Products

Key Industries Overview

The growth in India’s consumer market is largely driven by youthful demographics and rising disposable income. The growing affluence of India’s middle class, coupled with rapid urbanisation, has led to higher demand for good quality shopping malls, consumer products and lifestyle services. In particular, young and increasingly sophisticated Indian consumers are seeking foreign brands and imported consumer goods.

In a 2017 report, Boston Consulting Group expects India to become the world’s third largest consumer market by 2025. Government estimates predict that India’s retail industry will reach US$1.1 trillion by 2020, up from US$672 billion in 20171.

Online retailing is one particular area to watch, with the online retail market expected to grow from US$14.5 billion in 2016 to US$60 billion by 20202.

Singapore companies in sectors such as food, fashion retail and other lifestyle products and services will enjoy a first-mover advantage if they manage to grab opportunities early in India’s consumer market boom.

To ease your entry into this vast consumer market, consider alternative methods such as franchising or joint ventures to leverage local networks.


1: India Brand Equity Foundation



Key Industries Overview

The manufacturing sector currently contributes about 17% of India’s GDP1, but the government aims to raise this to 25% by 20222 and create 100 million new jobs in the sector.

The government has been actively promoting manufacturing in India through flagship programmes such as “Make in India”. Under this initiative, India has identified 23 key sectors for manufacturing, including automobiles, food processing, electronic systems, chemicals and pharmaceuticals. Key industrial corridors such as the planned Delhi Mumbai Industrial Corridor will provide convenient and well-connected bases for the expanding manufacturing sector.

If you are thinking of starting manufacturing operations in India, you might want to begin by simply trading with the country first, to better understand how your products will be received in the market. Of course, manufacturing in India presents opportunities for foreign firms to produce for export as well.

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1: World Bank, 2016



Key Industries Overview

India’s logistics industry is expected to grow by 9-10% each year over the medium term1, with the government expecting it to hit US$360 billion by 2032 – up from US$115 billion in 20172. India’s macro growth factors of increasing consumer demand, greater manufacturing output and growing trade volumes will continue to be key drivers for the logistics industry.

With the government of India actively promoting manufacturing through flagship programmes like “Make in India”, output from both domestic companies as well as foreign MNCs is expected to rise, in turn increasing the demand for logistics solutions.

The rapid rise of e-commerce and growth of delivery networks will also require vast investments in infrastructure and logistics. These include more warehouses, aggregation centres, and delivery and return centres. This presents Singapore firms with novel growth opportunities, beyond the traditional areas of logistics associated with manufacturing.



1: ICRA report, 2017

2: India Integrated Transport and Logistics Summit 2017

Water Treatment

Key Industries Overview

India is home to 17% of the world’s population but has only 4% of the world’s water resources at its disposal. With a burgeoning population and increased industrialisation, India is recognising the need to tackle water scarcity.

Wastewater treatment is therefore a key growth area. India had a wastewater treatment capacity of 18,883 million litres a day1 in 2015, representing just a third of total wastewater generated2. This large gap in treatment capacity, coupled with existing inadequate clean water supplies, presents immense opportunities for Singapore water companies to participate in the growth of India’s water sector.

India’s long coastline of 7,600 km also presents the possibility of extensive seawater desalination projects to boost water supplies.



1: MLD

2: PwC knowledge paper ‘Closing the water loop’, 2016

Waste Management

Key Industries Overview

Waste management has been one of the most neglected areas in India’s infrastructure development. An estimated 62 million tonnes of municipal solid waste is generated each year by India’s urban population, with this projected to reach 165 million tonnes by 2031 and 436 million tonnes by 2050. More than 80% of this waste is disposed of indiscriminately at dump yards. Yet this untapped waste could potentially generate 439 megawatts of power, from 32,890 tonnes per day of combustible waste1.

PM Modi’s “Clean India” campaign now presents unprecedented opportunities for firms with expertise in waste management, sanitation, and energy-from-waste technologies.



1: Planning Commission report, 2014


Key Industries Overview

As the world’s fourth largest producer and consumer of electricity , India represents a rich market for firms in the energy sector. About 21% of the population1 still have no access to electricity, due to a lack of capacity coupled with transmission losses.

Renewable energy is a particular focus for the government, which aims to generate an additional 175 gigawatts (GW) of renewable energy by 2022, of which 100 GW will come from solar power. By 2027, India hopes to generate a total 275 GW of renewable energy2.

As part of its energy push, the government has introduced incentives such as a 10-year tax exemption for solar energy projects and allowing 100% FDI for power sector projects.

Singapore companies in the energy sector can count on growth in key segments such as transmission and distribution, smart grid technologies, renewable energy and energy efficiency.


1: CIA World Factbook, 2013