Blitz India Business
Global investment bank Jefferies has highlighted India’s new industrial revolution in six high growth sectors including space and semiconductors.
“Large domestic opportunity is driving participation in emergent industries in India across space, semiconductors and electronic, data centres and solar,” Jefferies said in its report. Further, support from the Government is also visible here with actions such as opening space to private players, tax holidays for data centres, incentive schemes for semiconductors, electronics and solar, localisation measures and government GPU purchases, etc.
Talking about space, it said that India is among a handful of spacefaring nations with globally competitive capabilities. The space economy is targeted to grow five times to $40-45 billion by 2030, with private firms such as Skyroot, Pixxel and Agnikul moving towards commercial execution.
On semiconductors, it said that India’s push is moving from policy to execution, with around $20 billion of investment, a chip fab under construction and several OSAT projects starting production. A further $13 billion incentive plan is expected to deepen the ecosystem, the report added.
On data centre, it said that capacity has grown five times in five years to 2 GW and is expected to reach 10 GW in the next five years, creating a $45 billion investment opportunity across power, cooling, construction and networks. In electronics, “India is moving from assembly towards higher domestic value addition and component manufacturing,” the report said while expecting domestic value addition in mobile components to rise from below 20 per cent to around 50 per cent over the next six years.
“Large domestic opportunity is driving participation in emergent industries in India across space, semiconductors and electronic, data centres and solar,” Jefferies said in its report.
In solar, according to the report, India is now the world’s second-largest solar PV manufacturer, with 35 GW of cell capacity operational and another 100 GW under construction. Jefferies expects 90 per cent of the value chain to be localised by 2030. On aerospace, the report highlighted that India is emerging as a beneficiary of the global aerospace demand-supply imbalance, supported by cost-competitive manufacturing and engineering talent. Boeing and Airbus already source $1.4-1.6 billion annually from India, while Indian firms are supplying global OEMs and tier-1 companies.
The report’s broader point is that India’s large domestic opportunity, rising private participation and Government support are driving the expansion of new industries, with growing domestic capacity and global competitiveness.
