India is entering a new phase of industrial expansion, supported by strong domestic demand, increasing private-sector participation and sustained government policy measures, according to global investment bank Jefferies. The report identifies several emerging industries where policy initiatives and private investment are helping India strengthen its position in global manufacturing and technology.
The space sector is among the areas seeing significant momentum after India opened the industry to greater private participation. Jefferies said the country has globally competitive capabilities and is targeting a space economy worth $40–45 billion by 2030. Companies including Skyroot, Pixxel and Agnikul are progressing toward commercial operations, highlighting the growing role of private businesses in the sector.
India’s semiconductor industry is also moving from policy development toward implementation. Around $20 billion in investments are supporting the sector, including a chip fabrication facility that is currently under construction. An additional $13 billion incentive program is expected to further strengthen domestic semiconductor production and supporting industries.
The country’s data center industry has expanded rapidly, with capacity increasing fivefold over the past five years to more than 2 gigawatts. Jefferies expects capacity to exceed 10 gigawatts over the next five years, creating an estimated $45 billion investment opportunity spanning electricity, cooling systems, construction and network infrastructure.
Electronics manufacturing is similarly expected to become more localized. Domestic value addition in mobile components could rise from less than 20% to around 50% over the next six years as India moves beyond assembly and develops greater component manufacturing capabilities.
Solar manufacturing is another major growth area. India has become the world’s second-largest producer of solar photovoltaic modules, with more than 35 gigawatts of cell capacity already operational and another 100 gigawatts under development. The report expects more than 90% of the solar value chain to be localized by 2030.
India’s aerospace industry is also gaining importance in global supply chains. Boeing and Airbus currently source approximately $1.4–1.6 billion worth of products annually from India, with Indian companies increasingly supplying global aerospace manufacturers and Tier-1 suppliers.
Together, these developments point to a broader shift toward higher-value manufacturing, advanced technology and greater domestic industrial capabilities.
