New Delhi

India is entering a new phase of industrial growth, with private-sector participation and government support creating significant opportunities across six emerging sectors -- semiconductors, space, aerospace, electronics, solar manufacturing and data centres, brokerage firm Jefferies said in its latest equity strategy report.

Jefferies described the trend as "India's New Industrial Revolution", saying the country's existing manufacturing capabilities, large domestic market and policy support are providing a strong base for the next set of growth engines.

"India's next industrial revolution is being built on an already significant manufacturing base," the brokerage said. It noted that India is already a major global manufacturer across sectors such as steel, cement, automobiles and refining, while also emerging as a significant producer of mobile phones and solar modules.

According to Jefferies, the combination of scale, domestic demand, manufacturing capabilities and policy support is now creating a foundation for growth in semiconductors, space, aerospace, electronics, solar and data centres.

In semiconductors, India is moving from policy announcements to actual project execution, with around USD 20 billion of investments already triggered, including a chip fabrication plant under construction and several OSAT projects entering production.

The government has also launched a second phase of its semiconductor incentive programme with an outlay of about USD 13 billion. Jefferies said the expanded scheme should deepen the ecosystem by supporting areas including chip design, semiconductor equipment, materials, advanced packaging, research and development and talent.

"We believe India is building the foundations of a credible semiconductor ecosystem," Jefferies said, while acknowledging challenges related to supply-chain depth, talent and global competition.

The data-centre industry is another major growth area. India's colocation capacity has expanded five-fold over the past five years to around 2 GW, and Jefferies expects it to rise another five-fold to nearly 10 GW over the next five years. This expansion could represent a USD 9 billion revenue opportunity for operators and a USD 45 billion investment opportunity across power, cooling, construction and network infrastructure.

In space, the government opened the sector to private participation in 2020 and is targeting a five-fold expansion of the space economy to USD 40-45 billion by 2030, from around USD 8.4 billion in 2023. The startup ecosystem has also expanded sharply, with more than 400 space startups in 2026.

India's electronics industry is moving beyond assembly towards greater domestic value addition and component manufacturing, while policy schemes such as ECMS and MPMS are aimed at deepening backward integration and reducing import dependence.

In solar manufacturing, 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. Jefferies expects about 90 per cent of the solar manufacturing value chain to be localised by 2030.

The aerospace sector is also gaining from global supply constraints, with India's cost-competitive manufacturing capabilities and engineering talent positioning it as an attractive sourcing destination. Boeing and Airbus already source USD 1.4-1.6 billion annually from India.

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"India is emerging as a beneficiary of the global demand-supply imbalance in aerospace," Jefferies said.

The brokerage noted that policy support, localisation, domestic demand and increasing private participation could remain key drivers of India's next industrial growth cycle.