Archive · 11 Sep 2026
Jefferies Names Six Sectors Driving India’s Next Industrial Revolution
Jefferies studied which industries could help India grow in the future.
It highlighted space, computer chips, data centres, electronics, solar equipment and aircraft parts.
Government programmes are offering incentives and changing rules to help companies build these industries.
Private companies are now developing rockets, satellites and other space products.
India is also building semiconductor factories and trying to make more electronic components at home.
More data centres will be needed for cloud services, businesses and artificial intelligence.
Solar manufacturers are expanding factories for cells, wafers and other equipment.
Indian aerospace companies are supplying parts to major global aircraft manufacturers.
Jefferies named 16 listed companies it rated ‘Buy’ in these areas.
The report is optimistic, but it also identified challenges involving skilled workers, supply chains and international competition.
Jefferies identified space, semiconductors, data centres, electronics, solar manufacturing and aerospace as major drivers of India’s next industrial growth phase.
The brokerage said government incentives, private investment, domestic demand and global supply-chain diversification are supporting these sectors.
India’s private space ecosystem has expanded since the sector opened to private companies, with firms including Skyroot Aerospace, Pixxel, Agnikul Cosmos and Digantara developing commercial capabilities.
Semiconductor investments have reached about $20 billion, while data-centre capacity could rise to roughly 10 gigawatts and create a potential $45 billion infrastructure investment opportunity.
Jefferies rated 16 listed companies ‘Buy’ across the themes, including Kaynes Technology, Bharti Airtel, Samvardhana Motherson International, Premier Energies, Emmvee Photovoltaic Power and Bharat Forge.
- Who
- Jefferies assessed India’s industrial prospects, while government agencies and private companies are developing the six sectors.
- What
- The report identified six industries that could drive India’s next industrial growth phase and named 16 listed companies rated ‘Buy’.
- When
- The report was published on September 8, 2026, and discusses expansion over the coming years, including targets through 2030 and beyond.
- Where
- Across India, including its space, semiconductor, data-centre, electronics, solar-manufacturing and aerospace industries.
- Why
- Growth is being supported by government incentives, private investment, domestic demand, manufacturing capabilities and global demand for alternative supply chains.
Industrial Growth Opportunity
Execution Challenges
India’s emerging industrial ecosystems
Industrial Growth Opportunity
Jefferies said domestic demand, government support, private participation, engineering capabilities and global supply-chain diversification could make India an important base for these industries.
Execution Challenges
The report said semiconductor supply-chain depth, talent and global competition remain challenges, while new capacity must translate into deeper domestic value addition.
Policy-led expansion
Industrial Growth Opportunity
Incentives for semiconductors, electronics and solar, data-centre support, localisation requirements and the opening of space to private companies are helping attract investment.
Execution Challenges
The benefits depend on implementation, commercial execution and companies’ ability to build competitive products and supply chains rather than relying only on policy support.
- Six sectors
- Space, semiconductors, data centres, electronics, solar manufacturing and aerospace
- Buy-rated companies
- Jefferies identified 16 unique listed companies rated ‘Buy’ across the themes
- Space outlook
- Jefferies expects India’s space economy to expand to $40–45 billion by 2030 and $100 billion by 2040
- Semiconductor investment
- About $20 billion is invested or planned across the ecosystem, with a further roughly $13 billion incentive plan expected
- Data-centre opportunity
- Capacity could reach about 10 gigawatts over five years, representing an estimated $45 billion infrastructure investment opportunity
- Solar manufacturing
- About 35 gigawatts of solar-cell capacity is operational and another 100 gigawatts is under construction
- Aerospace sourcing
- Boeing sources more than $1.4 billion annually and Airbus more than $1.6 billion annually from India
