NEW DELHI, Sep 10: India is preparing for a new wave of industrial growth, with six emerging sectors expected to play a major role in reshaping the country’s manufacturing and technology landscape.
According to a latest equity strategy report by Jefferies, semiconductors, space, aerospace, electronics, solar manufacturing and data centres are emerging as key growth engines as government policies, private investment and strong domestic demand come together.
India already has a strong industrial base spanning steel, cement, automobiles and refining. The country has also expanded its manufacturing capabilities in areas such as mobile phones and solar modules, creating a foundation for moving into more advanced and technology-driven industries.
The semiconductor industry is moving into a more execution-focused phase, with around $20 billion in investments already triggered. This includes a chip fabrication plant under construction and multiple OSAT projects moving towards production.
Government support is expected to further strengthen the sector. The second phase of the semiconductor incentive programme carries an outlay of around $13 billion, with support aimed at chip design, equipment, materials, advanced packaging, research and development and talent development.
India’s data-centre industry is also witnessing rapid expansion. Colocation capacity has grown nearly five-fold over the past five years to about 2 GW, and Jefferies expects it to reach nearly 10 GW within the next five years. This could generate around $9 billion in revenue opportunities for operators and nearly $45 billion in investment opportunities across supporting infrastructure.
The space sector is gaining further momentum following the opening of the industry to private participation. India is targeting growth of its space economy to $40-45 billion by 2030, compared with around $8.4 billion in 2023. The country’s space startup ecosystem has also expanded significantly, with more than 400 startups in 2026.
In electronics, the focus is increasingly shifting from assembly towards domestic component production and greater value addition. Government initiatives are aimed at developing deeper supply chains and reducing dependence on imported components.
Solar manufacturing is another major opportunity. India has emerged as the world’s second-largest solar PV manufacturer, with around 35 GW of solar cell capacity operational and another 100 GW under construction. Localisation of the solar manufacturing value chain could reach around 90 per cent by 2030, according to the report.
The aerospace industry is also positioned to benefit from global supply-chain opportunities. India’s competitive manufacturing costs and engineering capabilities are supporting its emergence as an important sourcing destination. Boeing and Airbus currently source around $1.4-1.6 billion annually from India.
The growth of these six sectors could have a wider impact on the Indian economy by encouraging fresh investments, creating skilled employment, strengthening domestic supply chains and increasing India’s participation in global manufacturing networks.
With policy support, private-sector participation, localisation and rising domestic demand working together, these industries could become important pillars of India’s next industrial growth cycle.
