Global investment bank Jefferies, in a report published on Wednesday, has highlighted what it calls “India’s New Industrial Revolution”, driven by a large domestic market, rising private-sector participation and sustained policy support.
The report specifically points to measures such as opening up space to private players, tax holidays for data centres, incentive schemes for semiconductors, electronics and solar, localisation measures and government GPU purchases as key enablers of growth across emerging sectors.
The six sectors identified by Jefferies are space, semiconductors, data centres, electronics, solar and aerospace.
The report’s central point is that India’s large domestic opportunity, rising private participation and government support are driving the expansion of new industries, helping build domestic capacity and strengthen global competitiveness.
WHAT THE BANK HAS SAID
Space:
Jefferies says India is among a handful of spacefaring nations with globally competitive capabilities. The space economy is targeted to grow nearly fivefold to $40–45 billion by 2030, with private firms such as Skyroot, Pixxel and Agnikul moving towards commercial execution.
Semiconductors: India’s semiconductor push is moving from policy to execution, with around $20 billion of investment, a chip fab under construction and several OSAT projects starting production. A further investment incentive plan of around $13 billion is expected to deepen the ecosystem.
Data centres: Data-centre capacity has grown fivefold in five years to around 2 GW and is expected to reach around 10 GW over the next five years, creating a $45-billion investment opportunity across power, cooling, construction and networks.
Electronics:
India is moving from assembly towards higher domestic value addition and component manufacturing. Domestic value addition in mobile components is expected to rise from below 20 per cent to around 50 per cent over the next six years.
Solar:
India is now the world’s second-largest solar PV manufacturer, with around 35 GW of cell capacity operational and another 100 GW under construction. Jefferies expects around 90 per cent of the value chain to be localised by 2030.
Aerospace:
India is emerging as a beneficiary of the global aerospace demand-supply imbalance, supported by cost-competitive manufacturing and engineering talent. Boeing and Airbus already source $1.4–1.6 billion annually from India, while Indian firms are supplying global OEMs and Tier-1 companies.
