India's New Industrial Revolution Driven by Domestic Market, Private Participation and Policy Support: Jefferies
- IBEF
- September 14, 2026
Global investment bank Jefferies has stated that India's "New Industrial Revolution" is being driven by a large domestic market, rising private-sector participation and sustained policy support, citing measures such as the opening of the space sector to private players, tax holidays for data centres, incentive schemes for semiconductors, electronics and solar, localisation measures and government procurement of graphics processing units (GPUs) as key enablers across emerging sectors. On the space sector, the report noted that India is among a limited number of nations with globally competitive capabilities, with the space economy targeted to grow fivefold to Rs. 3.79-4.27 lakh crore (US$ 40-45 billion) by 2030 as private firms such as Skyroot, Pixxel and Agnikul progress towards commercial execution. On semiconductors, the report observed that India's efforts are transitioning from policy formulation to execution, supported by approximately Rs. 1.90 lakh crore (US$ 20 billion) of investment, a chip fabrication facility under construction, and a further Rs. 1.23 lakh crore (US$ 13 billion) incentive plan expected to deepen the ecosystem.
The report further stated that data centre capacity has grown fivefold over five years to exceed two gigawatts (GW) and is expected to surpass 10 GW within the next five years, representing a Rs. 4.27 lakh crore (US$ 45 billion) investment opportunity across power, cooling, construction and networks, while domestic value addition in mobile components is expected to rise from below 20% to approximately 50% over the next six years as India progresses from assembly towards component manufacturing. It noted that India is now the world's second-largest manufacturer of solar photovoltaic (PV) modules, with more than 35 GW of cell capacity operational and a further 100 GW under construction, with over 90% of the value chain expected to be localised by 2030. In the aerospace sector, the report added, Boeing and Airbus already source Rs. 13,282-15,179 crore (US$ 1.4-1.6 billion) annually from India, as Indian firms supply global original equipment manufacturers (OEMs) and Tier-1 companies.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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