India’s Growth Sectors UK Businesses Should Be Watching in 2026
- Ash King
- Dec 17
- 4 min read
India is already one of the most important growth markets for UK businesses. For scaleups and established SMEs alike, the shift is happening now, not in some distant future. Demand is growing, decision-making is faster, and the appetite for international capability is clear.
With India now the world’s fifth largest economy and expected to become the third largest within the next decade, UK businesses are increasingly looking at India as a market where growth feels achievable rather than constrained. This is especially true for companies operating in sectors where the UK has deep expertise and a strong global reputation.
Recent engagement in Leeds with Shri Vikram Doraiswami, High Commissioner of India to the United Kingdom, reinforced a point many businesses are already seeing first-hand. India is open for serious, delivery-focused partnerships, particularly with companies that understand how to operate at scale.
This blog looks at the sectors driving that opportunity and why UK scaleups are paying attention.
Why India Is Rising Up the Priority List for UK Scaleups
Many UK scaleups are facing the same challenge. Domestic growth has slowed, operating costs are rising, and competition in established markets is intense. India offers something different. It is a market where demand is expanding, not flattening.
Digital adoption across India has moved at speed. Healthcare, financial services, manufacturing and logistics have all embraced technology-led solutions, creating space for UK capability in software, data, systems integration and specialist services.
At the same time, there is a strong appetite for trusted international partners. UK businesses are often well placed because they bring experience, regulatory understanding and a reputation for quality.
The Sectors Driving India’s Next Phase of Growth:
Advanced Manufacturing and Industrial Capability
India’s manufacturing ambitions are no longer about volume alone. There is growing demand for higher value production, automation, quality control and specialist engineering.
UK companies working in advanced manufacturing, industrial technology, design engineering and production systems are finding opportunities to support this shift. In many cases, the value lies in helping Indian partners move up the value chain rather than simply supplying equipment.
For scaleups, this often means collaboration, localisation and long-term presence rather than one-off exports.
Digital Health and Health Technology
Healthcare demand in India continues to grow, driven by population size, urbanisation and increased private sector provision. Digital health has become a practical solution rather than a future concept.
UK businesses operating in digital health, diagnostics, data platforms and healthcare systems are well aligned with this demand. There is particular interest in solutions that improve access, reduce pressure on clinicians and deliver better patient outcomes at scale.
For health-focused scaleups, India offers both commercial opportunity and the chance to prove technology in complex, high-demand environments.
Clean Energy and Sustainability
India’s energy transition is creating sustained demand across renewable energy, clean infrastructure and environmental technology. This is not limited to generation. Storage, grid management, transport and water all feature heavily.
UK businesses with experience in clean energy systems, sustainability planning and climate-focused innovation are increasingly relevant partners. Many opportunities involve adapting proven solutions to local conditions rather than starting from scratch.
This is an area where long-term engagement matters more than quick wins.
Logistics, Trade and Supply Chain Infrastructure
As India strengthens its role in global trade, investment in logistics and supply chains continues to grow. Ports, airports, freight corridors and digital trade systems are all part of this picture.
UK firms with expertise in logistics technology, trade compliance, supply chain design and multimodal transport are finding growing demand for their services. This is particularly relevant as businesses look to diversify supply routes and reduce risk.
For scaleups, logistics and trade infrastructure often act as enablers for wider market entry.
Life Sciences and Innovation-Led Businesses
India’s life sciences sector is evolving quickly, with increased focus on research, development and higher-value production. Collaboration with international partners plays a central role in this growth.
UK businesses operating in life sciences, research, innovation commercialisation and university-linked ventures are well placed to engage. Opportunities often sit at the intersection of science, data and practical application.
This is an area where relationships, credibility and patience make a real difference.
What Businesses Are Doing Differently
One clear trend is that successful UK businesses are not waiting for perfect conditions before engaging with India. They are starting conversations early, building relationships and learning how the market works.
The visit of the Indian High Commissioner to Leeds this week highlighted the depth of interest in practical collaboration. The focus is no longer on announcements or intent, but on delivery and outcomes.
For UK scaleups, the question is less about whether India fits their plans and more about how their plans need to adapt to reflect where growth is actually happening.
Looking Ahead to 2026
India’s growth trajectory is reshaping how UK businesses think about international expansion. For those in advanced manufacturing, health, clean energy, logistics and innovation-led sectors, the opportunity is already present.
The businesses that succeed will be those that approach India with realism, commitment and a clear understanding of where their capability adds value. Growth in India is not automatic, but for the right businesses, it is very real.