Sunrise Industry

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Finance Minister Nirmala Sitharaman recently announced that India aims to boost the contribution of its manufacturing sector from 12% to 23% over the next two decades, with significant growth driven by sunrise sectors.

About Sunrise Industries

A sunrise industry refers to a sector that is emerging and positioned for significant growth. These industries typically experience high growth rates, attract numerous startups, and receive substantial investment.

Examples of sunrise industries include the alternative energy sector, which gained prominence in the early 2000s, the social media and cloud computing industries around 2011-2012, and the blockchain industry, which grew rapidly between 2013 and 2017. Other notable sunrise sectors include information technology and clean energy.

A key characteristic of sunrise industries is their high level of innovation. Their swift rise often poses a threat to established industries that are in decline, which are referred to as sunset industries.

Life Cycle of a Sunrise Industry

As a sunrise industry matures, it may transition through several stages: from rapid growth (sunrise), to stability (maturity), and eventually to decline (sunset). An example of this is the compact disc industry. In the 1990s, CDs emerged as a new technology that replaced vinyl records and cassette tapes, but with the rise of digital media in the 21st century, the CD industry shifted into the sunset phase.