A Sunrise industry is a new business or relatively new sector with the potential for rapid growth. Sunrise industries are often in their infancy stage showing promise of rapid growth. The IT industry is called the sunrise industry because of its high growth rates, startups, and huge capital funding. Some of the sunrise sectors in India are biotechnology, nanotechnology, artificial intelligence, electronics, green energy, food processing, tourism, and defence manufacturing. The automobile industry is also known as the ‘Sunrise Sector’ in India due to its recent and rapid expansion. Examples of sunrise industries include renewable energy, hydrogen fuel production, the petrochemical industry, the food processing industry, space tourism, and online encyclopedias.
The sunrise sector is a key area of focus for many governments and investors as it offers a significant source of economic growth and employment generation. The fast-growing sunrise sector generates about 5 million direct employment opportunities powered by 40% equipment demand.
Finance Minister Nirmala Sitharaman in the interim budget speech 2024-25 has proposed setting up a corpus of ₹1 trillion corpus to incentivize innovation and research on sunrise domains. The fund will have a provision of 50-year interest-free loans and will provide long-term financing and refinancing for long tenures with low or zero interest rates. “This will encourage the private sector to scale up research and innovation significantly in sunrise domains,” Sitharaman explained.
The Indian government has introduced several policies to boost the country’s R&D capabilities, including tax incentives for companies engaged in R&D activities and the establishment of several innovation and research parks across the country. However, India’s spending on research and development has lagged significantly behind other major economies. While India is among the top 10 global spenders on R&D, its absolute spending lags behind smaller economies like South Korea and France. R&D spending as a percentage of GDP has also been lower than other economies such as South Korea, Israel, Switzerland, and Sweden.
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