In 2026, India stands at a critical economic juncture. The transition from a services-led economy to a high-tech manufacturing and digital-first powerhouse is driven by Sunrise Sectors in India. As defined by NITI Aayog, these industries are characterised by high growth rates, significant innovation, and the potential to disrupt traditional market structures.
For investors, these sectors are not just “trends”; they are the primary beneficiaries of USD 7 trillion GDP roadmap of India. This report provides a deep-dive analysis of the top sunrise sectors in India to track for the next decade.
Top Sunrise Sectors in India – Renewable Energy
India adds record 44.5 GW renewable energy Capacity in 2025 (till November), nearly doubling annual additions. Solar Installed Capacity Touches 132.85 GW as India Adds Nearly 35 GW; Wind Reaches 54 GW after 5.82 GW increase, anchored by the massive expansion of the Khavda Hybrid Renewable Energy Park in Gujarat. The “Sunrise” element within this sector has evolved. In 2026, the market is obsessed with BESS (Battery Energy Storage Systems).
- Round-the-Clock (RTC) Tenders: SECI (Solar Energy Corporation of India) now almost exclusively issues tenders that require storage, ensuring that green energy is available even during peak night hours.
- Green Hydrogen Milestones: Till February 2026, India has commissioned 8,000 TPA (Tonnes Per Annum) of Green Hydrogen capacity. The “discovered cost” of Green Hydrogen through competitive bidding has stabilised around INR 387–397 per kg, making it increasingly competitive for refineries and fertiliser plants.
The INR 24,000 crore PLI Scheme for High-Efficiency Solar PV Modules is finally showing results. As of Q4 FY26, nearly 30 GW of domestic module manufacturing capacity has been established, significantly reducing our reliance on Chinese imports.
Key Companies & Financial Metrics
| Company | P/E Ratio | ROCE (%) | 3-Yr Sales Growth (%) |
|---|---|---|---|
| Tata Power | 37.2 | 10.8 | 15.2 |
| Adani Green Energy | 124 | 7.02 | 18.5 |
| JSW Energy | 43.8 | 6.49 | 12.9 |
| Suzlon Energy | 23.2 | 32.5 | 18.3 |
Upcoming IPOs in RE Sunrise Sector in India
- Juniper Green: INR 3,000 crore, Fresh Only
- Continuum Green Energy: INR 3,650 crore (Fresh + OFS)
- Prozeal Green Energy: INR 700 crore (Fresh + OFS)
- Rayzon Solar: INR 1,500 crore, Fresh Only
Top Sunrise Sectors in India – Electric Vehicles (EVs)
India added a record 24.5 million electric vehicles in FY26, nearly tripling annual sales compared to previous years. Electric Two-Wheeler (E2W) penetration reached an all-time high of 22% of total registrations, while the Passenger Vehicle (PV) segment saw a breakout year with nearly 1,99,923 electric cars sold. The “Sunrise” element within this sector has evolved; in 2026, the market is obsessed with Cell Localization and Battery Circular Economy (Recycling).
- Advanced Chemistry Cell (ACC) PLI: The INR 18,100 crore PLI scheme is finally delivering, with the first domestically manufactured lithium cells rolling out in Q1 2026.
- FAME-III & Regulatory Stability: The rollout of the FAME-III scheme has provided a long-term subsidy roadmap, focusing on public transport and charging infrastructure, ensuring the EV transition remains capital-efficient for OEMs.
- Charging Infrastructure Explosion: As of May 2026, India has established a network of over 60,000 public charging points, with a specific focus on “Highway Green Corridors,” reducing range anxiety for inter-city travel.
Key Companies & Financial Metrics
| Company | P/E Ratio | ROCE (%) | 3-Yr Sales Growth (%) |
| M&M | 23.6 | 15.4 | 17.9 |
| Bajaj Auto | 27.6 | 28.2 | 19.9 |
| TVS Motor | 60.3 | 15.4 | 21.9 |
| Ola Electric | – | 8.4 | 130 |
| Ather Energy | – | (19.8) | 27.3 |
Upcoming IPOs in EV Sunrise Sector in India
- Greaves Electric Mobility: INR 1,000 crore (Fresh) + 18.94 crore shares (OFS)
Read Also: Top Agritech Startups in India
Top Sunrise Sectors in India – Biotechnology
India’s biotechnology sector has surpassed the USD 150 billion valuation milestone in early 2026, driven by a structural shift from “process imitation” to “Bio-Innovation.” As of May 2026, the industry is fueled by the government’s Bio-E3 Policy (Economy, Employment, and Environment), which has catalyzed high-performance biomanufacturing and the “China+1” shift in global CDMO (Contract Development and Manufacturing Organization) services.
- Global Biosimilar Hub: With several major biologic patents expiring in 2025-26, Indian players have captured nearly 20% of the global biosimilar market share, leveraging their low-cost manufacturing moats and high-quality R&D.
- CDMO & CRDMO Shift: Global pharma giants are increasingly outsourcing complex research to Indian firms like Syngene and Gland Pharma. In 2026, the Contract Research and Manufacturing segment is growing at a CAGR of 18.5%, outperforming the broader pharma market.
- Bio-Agri & Bio-Industrial Growth: Beyond healthcare, the “Sunrise” aspect includes Genetically Modified (GM) crops for climate resilience and Bio-fuels, which are critical for India’s Ethanol Blending targets.
Key Companies & Financial Metrics
| Company | P/E Ratio | ROCE (%) | 3-Yr Sales Growth (%) |
| Biocon | 75.6 | 6.25 | 23.1 |
| Dr. Reddy’s Laboratories | 19.6 | 22.7 | 14.9 |
| Syngene International | 50.3 | 10.1 | 5.40 |
| Zydus Lifesciences | 18.5 | 24.3 | 15.0 |
| Gland Pharma | 35.7 | 11.9 | 8.47 |
| Concord Biotech | 39.2 | 28.4 | 19.0 |
Upcoming IPOs in Biotechnology Sunrise Sector in India
- Molbio Diagnostic: INR 200 crore + 1.26 crore shares (Fresh + OFS)
- Symbiotec Pharmalab: INR 150 crore + INR 2,030 crore (Fresh + OFS)
- Veeda Clinical Research: INR 185 crore + 1.30 crore shares (Fresh + OFS)
- Hindustan Laboratories: 1.41 crore shares (Fresh + OFS)
- Virupaksha Organics: INR 740 crore
Top Sunrise Sectors in India – Asset Management Industry
The Indian mutual fund and asset management industry has reached unprecedented heights in 2026, with the industry’s Average Assets Under Management (AAUM) crossing a historic INR 79.46 lakh crore mark as of March 2026. The total number of mutual fund folios has surged to over 27.39 crore. The “Sunrise” element within this sector is the Financialization of Savings—the structural shift of household savings from physical assets (gold, real estate) and traditional bank deposits into equities and mutual funds.
- Tier-2 and Tier-3 Penetration: In 2026, the B30 (Beyond Top 30) cities are contributing heavily to SIP (Systematic Investment Plan) inflows, which have become a sticky, recurring source of domestic liquidity for the markets.
- The Rise of Passives & ETFs: Investors are increasingly adopting low-cost Index Funds and Exchange Traded Funds (ETFs). AMCs with a strong foothold in the passive investing segment are witnessing disproportionate volume growth.
- Asset-Light Cash Generators: Unlike manufacturing or infrastructure, Asset Management is highly capital-efficient. These companies operate on an “Asset-Light” model, resulting in some of the highest Return on Capital Employed (ROCE) figures across any sector in the Indian economy.
Key Companies & Financial Metrics
| Company | P/E Ratio | ROCE (%) | Total AUM (in ₹ Cr) |
| ICICI AMC | 49.5 | 115 | 11,04,787 |
| HDFC AMC | 42.5 | 38.2 | 9,27,451 |
| Nippon Life India AMC | 35.1 | 37.0 | 7,24,965 |
| Aditya Birla Sun Life AMC | 28.5 | 34.9 | 4,35,865 |
| UTI AMC | 22.4 | 24.5 | 3,88,470 |
Upcoming IPOs in the Asset Management & Financial Services Sector
- SBI Mutual Fund: SBI Funds Management is India’s largest AMC with an AUM of nearly INR 12.5 lakh crore. The AMC has filed DRHP for IPO with the Securities and Exchange Board of India, aiming to unlock massive value for the parent bank.
Read Also: Top Asset Management Companies in India
Conclusion
These sunrise sectors in India present substantial opportunities for growth and investment, driven by innovation, supportive government policies, and technological advancements across various industries. At the same time, all of these industries present opportunities for the next several years and in some cases, decades.
Top Sunrise Sectors in India FAQs
What is a sunrise sector?
A sunrise sector is a new or emerging industry in its infancy, characterised by rapid growth, high innovation, numerous startups, and significant venture capital funding.
Which are the top companies in AMC Sunrise Sector?
SBI Funds, ICICI AMC and Nippon AMC are the top companies in AMC sector in India.
Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.
