India’s next phase of industrial growth could be driven by six emerging sectors — space, semiconductors, data centres, electronics, solar manufacturing and aerospace, according to Jefferies. The brokerage expects policy support, localisation and India’s large domestic market to attract significant private investment across these industries.
Data centres are among the biggest opportunities. India’s colocation data-centre capacity has grown fivefold over the past five years to around 2 GW. Jefferies expects another fivefold expansion to about 10 GW over the next five years, potentially requiring around $45 billion in facility capital expenditure and creating a roughly $9-billion revenue opportunity for operators.
India’s space economy is also expected to expand rapidly, reaching an estimated $40–45 billion by 2030. The sector has gained momentum since private participation was opened in 2020, with companies including Skyroot Aerospace, Pixxel, Agnikul Cosmos and Digantara advancing commercial space capabilities.
The semiconductor industry is moving from policy ambition towards execution, with around $20 billion of investments already underway. Jefferies said further incentives could accelerate ecosystem development, although supply-chain depth, talent availability and global competition remain challenges.
Electronics manufacturing is also expected to move beyond assembly, with local value addition projected to rise significantly. In solar manufacturing, India already has around 35 GW of operational solar-cell capacity, with another roughly 100 GW under construction. Jefferies expects around 90% of the solar manufacturing value chain to be localised by 2030.
Aerospace completes the six-sector growth story, with Indian manufacturers increasingly becoming part of global supply chains. Jefferies sees further opportunities as companies expand their role in supplying major aerospace manufacturers and Tier-1 companies.
