India enters ‘new industrial revolution’ driven by private sector growth

A report by global investment bank Jefferies describes India as undergoing a ‘new industrial revolution’ driven by a large domestic market, increased private sector participation, and supportive government policies. The growth is concentrated in several key sectors, including space, semiconductors, data centers, electronics, solar manufacturing, and aerospace.

In the space sector, India aims to expand its space economy to $40–$45 billion by 2030. Private companies such as Skyroot, Pixxel, and Agnikul are transitioning from innovation to commercial operations. The semiconductor industry is seeing approximately $20 billion in investment, including the construction of a chip fab and the commencement of production in several OSAT projects, supported by a $13 billion incentive plan.

Additionally, India’s data center capacity is expected to grow from 2 gigawatts to 10 gigawatts over the next five years, potentially creating $45 billion in investment opportunities across power, cooling, and construction. In electronics, the nation is shifting from simple assembly toward higher domestic value addition and component manufacturing.