Six sectors to drive India's new industrial revolution, says Jefferies report

Global investment bank Jefferies has identified six sectors—space, semiconductors, data centres, electronics, solar manufacturing and aerospace—as potential drivers of India's next phase of industrial growth. The report, published on 8 September, attributes this opportunity to a combination of an established manufacturing base, a massive domestic market and rising global demand for alternative supply chains.

The Modi government's policy measures are backing this growth through various incentive schemes. These include opening the space sector to private companies, long tax holidays for data centres, large incentive schemes for semiconductors, electronics and solar, localisation requirements and GPU purchases.

Since the space sector was opened for private participation in 2020, startups have advanced from early innovation to commercial execution. Companies like Skyroot, Pixxel, Agnikul and Digantara are progressing in areas ranging from orbital launch and high-resolution observation satellites to 3D-printed rocket engines and surveillance capabilities.