Investors from the United Arab Emirates are increasingly looking at India’s dynamic economic landscape for investment opportunities, as highlighted in a recent report by Dubai Chambers during the Dubai-India Business Forum. The report emphasizes that India’s significant economic transformation positions it as a leading global growth center in the coming years.

India, which holds the title of Asia’s second-largest new car market after China, has seen strong recovery in annual unit sales over the past three years. The Indian automobile market is expected to expand at a compound annual growth rate (CAGR) of 3.3 percent, with annual sales projected to approach 5.2 million units between 2024 and 2029. In the electric vehicle segment, sales are anticipated to grow at a CAGR of 16 percent during the same period, although electric vehicles will only account for 4 percent of total new car sales by 2029.

India’s vast population makes it an attractive consumer market, particularly for retailers and luxury brands. Private consumption constitutes 57.5 percent of the country’s GDP, underscoring the retail sector’s crucial role in employment and economic development. The report notes that retail and e-commerce are expanding beyond major cities into smaller towns, where rising purchasing power and increased smartphone use are creating new growth opportunities.

The financial services sector in India has experienced a robust recovery, with banks reporting record profits for three consecutive years from 2021 to 2023. This positive trend is expected to continue, with non-performing loans (NPLs) gradually declining. It is anticipated that profitability in this sector will further increase between 2025 and 2029, driven by strong growth in retail banking lending.

Additionally, India’s insurance market is on track for significant growth, supported by a burgeoning middle class, innovative products, and favorable regulatory conditions. Total insurance premiums are projected to rise by 7.1 percent in real terms from 2025 to 2029, positioning India as the fastest-growing insurance market among G20 nations. The financial technology (fintech) sector is also thriving, becoming a pivotal channel for credit, insurance, and investment products, with India currently hosting the world’s third-largest fintech ecosystem, which has an adoption rate of 87 percent.

Healthcare spending in India is estimated to grow at a 9 percent CAGR from 2025 to 2029, fueled by increased government expenditure and growing uptake of private health insurance. The country is also becoming a significant player in digital healthcare, with public-private partnerships emerging in areas such as artificial intelligence, telemedicine, and medical imaging.

In terms of infrastructure, India is in the midst of over 13 000 projects valued at more than $2.3 trillion, which include roads, bridges, power plants, railways, and ports. Specific infrastructure initiatives, such as the National Infrastructure Pipeline (NIP), are making a considerable impact, currently comprising 13 214 projects with a total investment of $2.3 trillion. India is prioritizing industrial sectors within these projects, creating numerous opportunities for strategic partnerships with UAE technology and infrastructure firms.