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Jefferies Space, Chips, Data Centres to Drive India's Leap

3 hours ago

A Jefferies report says space, semiconductors, data centres, solar and electronics will drive India's next industrial revolution, backed by policy and private capital.

Emerging sectors including space, data centres, solar energy, semiconductors and electronics are poised to power India's next phase of industrial growth, according to a report by global investment bank Jefferies. The report, released from New Delhi, said a large domestic market is pulling in private participation across these industries.

Supportive government measures are central to the outlook. Jefferies pointed to tax holidays for setting up data centres, sizeable incentive schemes for semiconductor production, electronics and solar cells, and steps to open the space sector to greater private involvement. The report said India's next industrial revolution rests on an existing manufacturing base in steel, cement, automobiles and oil refineries, describing the mix of scale, domestic demand, manufacturing capability and policy support as a strong foundation for new growth engines.

Space startups multiply

India is among a small group of spacefaring nations with what the report called "global competitive capabilities." The government is targeting close to a fivefold expansion of the space economy, to $40-50 billion over 2023-30. The number of space startups has jumped from just one in 2014 to more than 400 in 2026. Cumulative private investment in the sector reached $600 million by 2025-26, and Jefferies said Indian space startups are moving from early-stage innovation toward commercial execution.

Chip fab under construction

In semiconductors, the report said India is shifting from policy intent to execution, with nearly $20 billion of investments committed, including a chip fabrication plant now under construction. A new $13 billion incentive plan is expected to widen the ecosystem and lift value addition, including chip design.

Data centres are emerging as a strategic piece of digital infrastructure. Colocation capacity has grown five times over the past five years to 2 gigawatts. Jefferies expects another fivefold rise, to nearly 10 gigawatts, over the next five years, driven by favourable cost economics, policy support and rising demand from hyperscale operators.

India industrial revolution, Jefferies report, India space economy, India semiconductors, data centres India, solar energy India, electronics manufacturing, private investment India

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