Global investment bank Jefferies has said that India’s New Industrial Revolution is being driven by a large domestic market, rising private-sector participation and sustained policy support.
In a report published yesterday, it pointed to measures 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 as key enablers of growth across emerging sectors.
Jefferies said, India is among a handful of spacefaring nations with globally competitive capabilities. It said, the space economy is targeted to grow five times to 40 to 45 billion dollars by 2030, with private firms such as Skyroot, Pixxel and Agnikul moving towards commercial execution. On Semiconductor, the global investment bank said, India’s push is moving from policy to execution, with around 20 billion dollars of investment, a chip fab under construction and several OSAT projects starting production. It said, a further 13 billion dollars incentive plan is expected to deepen the ecosystem.
Jefferies said, Data Centres capacity has grown five times in five years to over 2 Giga Watts and is expected to reach over 10 Giga Watts in the next five years, creating a 45 billion dollars investment opportunity across power, cooling, construction and networks. On Electronics sector, it said, India is moving from assembly towards higher domestic value addition and component manufacturing. It expected that domestic value addition in mobile components will rise from below 20 per cent to around 50 per cent over the next six years. Jefferies said, India is now the world’s second-largest solar PV manufacturer, with over 35 Giga Watt of cell capacity operational and another 100 Giga Watt under construction. It expected that over 90 per cent of the value chain to be localised by 2030.
On Aerospace, it said, India is emerging as a beneficiary of the global aerospace demand-supply imbalance, supported by cost-competitive manufacturing and engineering talent. Jefferies said, Boeing and Airbus already source 1.4 to 1.6 billion dollars annually from India, while Indian firms are supplying global OEMs and Tier-1 companies. The report highlighted 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.
