{"id":597117,"date":"2026-09-11T13:12:09","date_gmt":"2026-09-11T13:12:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/597117\/"},"modified":"2026-09-11T13:12:09","modified_gmt":"2026-09-11T13:12:09","slug":"indias-6-emerging-sectors-driving-the-next-industrial-wave","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/597117\/","title":{"rendered":"India\u2019s 6 Emerging Sectors Driving the Next Industrial Wave"},"content":{"rendered":"

India is attracting investment into a range of emerging industries as domestic demand, private-sector participation, and efforts to build local supply chains reshape its industrial landscape. A recent report identifies India\u2019s six emerging sectors<\/a>, i.e., space, semiconductors, data centres, electronics, solar manufacturing, and aerospace, where commercial activity is expanding and domestic capabilities are developing.<\/p>\n

Policy intervention is playing a major role in this shift. India has opened its space sector to private companies, introduced incentives for semiconductor, electronics, and solar manufacturing, provided tax benefits for data centre development, and promoted greater localisation across strategic industries. Government procurement of GPUs is also supporting the development of domestic AI infrastructure.<\/p>\n

India\u2019s Emerging Sectors<\/p>\n

Gain insights into India\u2019s sector-specific policies, incentives, and regulatory requirements to help assess your business entry strategies.<\/p>\n

Book a free consultation<\/a><\/p>\n

1. Space: Expanding private-sector participation<\/p>\n

India has established capabilities across the space sector<\/a> and is expanding opportunities for commercial activity. The country\u2019s space economy has a target of reaching approximately US$40-45 billion by 2030, representing a fivefold increase from current levels.<\/p>\n

Private companies including Skyroot Aerospace, Pixxel, and Agnikul Cosmos are developing commercial space applications and moving toward operational deployment. This reflects the increasing participation of private enterprises alongside India\u2019s established public-sector space capabilities.<\/p>\n

Policy changes that have opened the sector to private investment, together with India\u2019s existing technical capabilities, are supporting the development of a broader commercial space industry.<\/p>\n

2. Semiconductors: Progressing from policy to implementation<\/p>\n

India\u2019s semiconductor programme has progressed from policy development to the implementation of manufacturing and testing projects. Jefferies estimates that approximately US$20 billion in investment is associated with the sector, including a semiconductor fabrication facility under construction and several outsourced semiconductor assembly and test (OSAT) projects moving toward production.<\/p>\n

The government is also expected to provide an additional US$13 billion in incentives to support semiconductor manufacturing and related activities. These measures cover areas including fabrication, assembly, packaging, testing, and other parts of the semiconductor supply chain.<\/p>\n

The development of domestic semiconductor capacity is part of India\u2019s broader effort to expand local manufacturing and reduce dependence on imported components.<\/p>\n

CLICK HERE: India\u2019s Semiconductor Sector: Tracking Government Support and Investment Trends<\/a><\/p>\n

3. Data centres: Capacity expansion & infrastructure requirements<\/p>\n

India\u2019s data centre capacity has increased approximately fivefold over the past five years, reaching around 2 GW. Jefferies projects that capacity could increase to approximately 10 GW over the next five years.<\/p>\n

The projected expansion represents an estimated US$45 billion investment opportunity across associated infrastructure, including power, cooling, construction, and network connectivity.<\/p>\n

Demand for data centre capacity<\/a> is being supported by the continued adoption of cloud services, digital applications, artificial intelligence, and other data-intensive technologies.<\/p>\n

4. Electronics: Increasing domestic value addition<\/p>\n

India\u2019s electronics manufacturing sector<\/a> is moving beyond final assembly, with greater emphasis on domestic value addition and component production.<\/p>\n

Jefferies estimates that domestic value addition in mobile components could increase from below 20 per cent to approximately 50 per cent over the next six years. This would involve greater domestic production of components and other inputs used in electronics manufacturing.<\/p>\n

The development of local component manufacturing could also expand opportunities for suppliers and manufacturers further up the electronics value chain.<\/p>\n

5. Solar: Increasing manufacturing capacity<\/p>\n

India is currently the world\u2019s second-largest solar photovoltaic (PV) manufacturing base, according to Jefferies. Approximately 35 GW of solar cell manufacturing capacity is operational, while another 100 GW is under construction.<\/p>\n

Jefferies expects around 90 per cent of the solar value chain to be localised by 2030. Increased domestic manufacturing of cells and other components<\/a> would expand India\u2019s participation across the solar supply chain and reduce reliance on external sources for key inputs.<\/p>\n

6. Aerospace: Increasing integration with global supply chains<\/p>\n

India\u2019s aerospace industry is gaining a larger role in global manufacturing and engineering supply chains, supported by relatively competitive production costs and an established engineering workforce.<\/p>\n

According to Jefferies, Boeing and Airbus source approximately US$1.4\u20131.6 billion worth of products and services annually from India. Indian companies also supply international original equipment manufacturers (OEMs) and Tier-1 aerospace companies.<\/p>\n

Continued growth in global aircraft production could provide further opportunities for Indian manufacturers and engineering service providers to participate in international aerospace supply chains.<\/p>\n

Key factors shaping India\u2019s emerging industries<\/p>\n

The six sectors identified by Jefferies share several characteristics: significant domestic demand, increasing private-sector participation, investment in local production capacity, and government measures aimed at developing strategic industries.<\/p>\n

Policy support ranges from incentives for manufacturing and infrastructure to measures encouraging localisation and private investment. At the same time, companies are expanding their production and service capabilities in response to domestic and international demand.<\/p>\n

The pace and scale of development will vary across sectors, but the trends point to increasing activity in India\u2019s technology, digital infrastructure, clean energy, aerospace, and other strategic industries.<\/p>\n

About Us<\/p>\n

India Briefing<\/a> is one of five regional publications under the Asia Briefing<\/a> brand. It is supported by Dezan Shira & Associates<\/a>, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Delhi, Mumbai, and Bengaluru in India<\/a>. Dezan Shira & Associates is part of the Ascentium Group<\/a>, a global business services platform with over 2,900 professionals across 58 cities in 27 markets, strengthening the firm’s on-the-ground ability to support clients across Asia and globally. <\/p>\n

For a complimentary subscription to India Briefing’s content products, please click here<\/a>. For support with establishing a business in India or for assistance in analyzing and entering markets, please contact the firm at india@dezshira.com<\/a> or visit our website at www.dezshira.com<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"India is attracting investment into a range of emerging industries as domestic demand, private-sector participation, and efforts to…\n","protected":false},"author":2,"featured_media":597118,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[111,139,69,147,392],"class_list":["post-597117","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-new-zealand","tag-newzealand","tag-nz","tag-science","tag-space"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/597117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=597117"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/597117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/597118"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=597117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=597117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=597117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}