Jefferies identifies six sectors driving India’s next growth phase

India is entering a new phase of industrial growth with six emerging sectors that could attract significant investment and boost the country’s position in global supply chains, global investment bank Jefferies said in a recent report.

The sectors are space, semiconductors, data centres, electronics, solar manufacturing and aerospace, according to Jefferies’ India Equity Strategy report, titled “India’s New Industrial Revolution.”

Government policy, a large domestic market and more private-sector participation are creating conditions for faster growth across the industries, Jefferies said.

According to the Jefferies, India’s space economy could be worth $40 billion to $45 billion by 2030, and semiconductor investments are already in the pipeline worth around $20 billion.

The data-centre industry has also grown fast, with colocation capacity increasing fivefold in five years to around 2 gigawatts. Jefferies estimates another fivefold increase in capacity to around 10 GW over the next five years, creating an estimated $45 billion in investment opportunities across power, cooling, construction and network infrastructure.

Jefferies believes that government incentives for electronics will boost domestic production of components and cut import dependence.

The report said India is already the world’s second-largest solar photovoltaic manufacturer, with about 35 GW of solar cell capacity operational and around 100 GW under construction.