- September 10, 2026
India’s New Industrial Revolution: Jefferies Highlights 6 Sectors Set for Major Growth
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India is entering new phase of growth, with private sector participation gathering pace in space, semiconductors, electronics, data centres, solar, and aerospace, says Jefferies.
The brokerage said a combination of large domestic opportunities, government incentives and localisation policies is encouraging companies to invest in emerging industries.
India is entering a new phase of industrial growth, with private-sector participation gathering pace across emergent industries like space, semiconductors, electronics, data centres, solar manufacturing and aerospace, brokerage Jefferies said in its latest ‘India Equity Strategy’ note.
The brokerage said a combination of large domestic opportunities, government incentives and localisation policies is encouraging companies to invest in emerging industries that were earlier dominated by the public sector or imports.
Jefferies highlighted six sectors that it expects to play a key role in India’s next industrial cycle — space, semiconductors, data centres, electronics, solar manufacturing and aerospace.
Space economy could grow five-fold
India’s space sector is emerging as a significant private-sector opportunity after the government opened the industry to private participation in 2020. “India is among a handful of spacefaring nations with globally competitive capabilities,” Jefferies stated.
The global brokerage firm expects India’s space economy to expand nearly five-fold between 2023 and 2030 to $40-45 billion. A growing number of startups are moving from early-stage innovation towards commercialisation, it said.
Among the companies highlighted by the brokerage are Skyroot Aerospace, which conducted an orbital launch in July; Pixxel, which is developing high-resolution observation satellites; Agnikul Cosmos, which is working on 3D-printed rocket engines; and Digantara, which is developing surveillance satellites.
Semiconductor push moves from policy to execution
India’s semiconductor aspirations are moving from policy intent to execution, with around $20 billion of investments already in the pipeline, according to Jefferies.
Several OSAT (outsourced semiconductor assembly and test) projects are beginning production, while a new $13 billion semiconductor incentive plan could further expand the ecosystem and improve domestic value addition, the brokerage said.
However, supply-chain depth, availability of skilled talent and global competition remain key challenges for the sector.
Data centres: capacity could rise five-fold
India’s data-centre industry is rapidly emerging as a strategic digital infrastructure segment, driven by cloud adoption, digitisation and data-localisation requirements.
Jefferies said colocation capacity has increased five-fold over the past five years to around 2GW and expects capacity to expand another five-fold to 10GW over the next five years.
The brokerage estimates this could create around $9 billion in revenue opportunities for data-centre operators and a roughly $45 billion investment opportunity across power, cooling, construction and network infrastructure.
Electronics shifts from assembly to value addition
India’s electronics industry is moving beyond assembly towards greater domestic value addition and component manufacturing, Jefferies said.
Electronics exports have risen sharply, while government initiatives such as the ECMS (Electronics Component Manufacturing Scheme) and MPMS (Mobile 2.0) are aimed at deepening backward integration and reducing import dependence.
Jefferies expects ECMS to cover around 50% of the mobile phone bill of materials (BoM) over the next six years, compared with less than 20% currently.
Printed circuit boards (PCBs) could be another major opportunity. The brokerage estimates the PCB market at around $5 billion, with 85-90% of current requirements met through imports.
India could localise 90% of solar manufacturing value chain
India has emerged as the world’s second-largest solar PV manufacturer, with around 35GW of solar-cell manufacturing capacity already operational and another roughly 100GW under construction, according to Jefferies.
Policy measures including the Approved List of Models and Manufacturers (ALMM), regulatory quality requirements, domestic-content rules and production-linked incentives are encouraging greater localisation.
The brokerage expects around 90% of the solar manufacturing value chain to be localised by 2030, creating opportunities across the domestic manufacturing ecosystem.
Aerospace exports set to benefit from global supply-chain shift
India’s aerospace industry is another area where Jefferies sees an opportunity arising from the global imbalance between demand and supply. The country can leverage its relatively cost-competitive manufacturing base and engineering talent as global aerospace companies expand their supplier networks, it said.
Indian aerospace exports to Boeing and Airbus are already estimated at $1.4-1.6 billion annually, with companies such as Azad Engineering, Bharat Forge, Dynamatic Technologies, Rane and Sansera Engineering among Indian suppliers to global OEMs and Tier-1 manufacturers. Jefferies said these companies are continuing to expand their presence in the sector.
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Ask News18Jefferies highlights space, semiconductors, data centers, electronics, solar manufacturing, and aerospace as the six sectors expected to play a key role in India’s next industrial cycle.
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