Global investment bank Jefferies has released its latest report 'India's New Industrial Revolution', identifying 16 'Buy' stocks across six key sectors driving India's industrial transformation. According to The Financial Express, the September 8 report examines how these sectors are developing and identifies a number of listed companies rated 'Buy' across the themes. Kaynes Technology India Ltd. has begun commercial production at its semiconductor packaging facility in Sanand, Gujarat, with production starting in March 2026 and revenue visibility of ₹2,500 crore over the next five years. Bharti Airtel is positioned to benefit from India's data centre expansion, while Bharat Forge and Samvardhana Motherson International feature in the aerospace opportunities. The brokerage's assessment puts six emerging industries at the centre of India's next industrial growth phase, with government incentives, domestic demand, private capital, engineering capabilities and manufacturing investment creating significant opportunities.
India's space economy is positioned for dramatic growth, with the country's space economy expected to expand nearly fivefold to $40–50 billion by 2030. As reported by Jefferies, the government opened the sector for private participation in 2020, targeting ~5x expansion of space economy over 2023-30 to $40-50bn. The space start-up ecosystem has grown dramatically from one company in 2014 to more than 400 in 2026, covering launch vehicles, satellites, Earth observation, propulsion and downstream space applications. Cumulative private investment reached about US$0.6 billion by financial year 2026, with government support including the ₹10,000 million Venture Capital Fund, ₹5,000 million Technology Adoption Fund and the IN-SPACe Seed Fund Scheme. Skyroot Aerospace became the first private Indian company to place payloads into orbit with the Vikram-1 launch in July 2026, while Pixxel operates high-resolution hyperspectral Earth observation satellites and has secured a National Aeronautics and Space Administration contract. Jefferies expects India's space economy to reach $100 billion by 2040, with the Indian Space Policy 2023 opening the entire space value chain to private companies.
India's semiconductor ambitions are moving beyond policy announcements towards actual commercial execution, with investment of around $20 billion underway and a chip fabrication plant currently under construction. According to Jefferies, another incentive package of around $13 billion is expected to further strengthen the semiconductor ecosystem. Government data shows 10 semiconductor projects worth about ₹1.6 trillion had been approved by April 2026, including two fabs and eight packaging units. Kaynes Technology India Ltd. has begun commercial production at its semiconductor packaging facility in Sanand, Gujarat, with production initially focusing on Intelligent Power Modules for automotive and industrial applications. The Sanand facility has been designed to scale to about 6 million units a day at full capacity, with the final phase expected to be commissioned by 2028. Jefferies believes that a new $13 billion incentive plans for the semiconductor industry should further expand the ecosystem, boost value addition, including chip design.
India's data centre capacity has increased fivefold over the past five years to around 2 GW, with Jefferies expecting this to rise to approximately 10 GW over the coming five years, translating into a $45 billion investment opportunity spanning power, cooling, construction and network infrastructure. According to The Financial Express, the brokerage estimates that this expansion could create a US$9 billion revenue opportunity for data centre operators and expects the associated facility investment to reach about US$45 billion between calendar year 2027 and calendar year 2031. Colocation capacity has already expanded 5x over the last five years and is expected to grow another 5x over the next five years to 10 GW. The spending opportunity extends across multiple components, with power and electrical systems expected to account for $16 billion, land and shell $11 billion, racks and fit-outs $9 billion, cooling $7 billion and network infrastructure $2 billion between calendar year 2027 and calendar year 2031. Bharti Airtel's exposure comes through Nxtra, with investments from Bharti Airtel, AdaniConneX and Tata Consultancy Services supporting additional capacity.
India's electronics industry is undergoing a significant transformation, with domestic value addition in mobile components expected to increase from below 20% to around 50% over the next 6 years. According to Jefferies, electronics production has already risen sharply, from about ₹1.9 trillion in 2014-15 to ₹12 trillion in 2024-25, according to the Ministry of Electronics and Information Technology. The shift is backed by schemes such as ECMS (components scheme) and MPMS (Mobile 2.0) aim to deepen backward integration and reduce import dependence. The Electronics Component Manufacturing Scheme has received 106 project approvals with committed capital expenditure of ₹1,15,400 crore and projected component production worth ₹10,34,800 crore over its six-year tenure. Samvardhana Motherson International is participating in domestic component manufacturing under the Electronics Component Manufacturing Scheme, while Kaynes Technology India Ltd. has received approvals for multi-layer printed circuit boards and high-density interconnect printed circuit boards. The government has increased support for the programme, with the scheme's budget allocation raised to ₹40,000 crore from the initial ₹22,900 crore announced in April 2025.
India is emerging as a significant beneficiary of the global aerospace demand-supply imbalance, with Indian exports already sourcing $1.4 billion - $1.6 billion annually by Boeing and Airbus. According to The Financial Express, India's aerospace exports under aircraft, spacecraft and parts increased from US$1.4 billion in financial year 2020 to US$7 billion in financial year 2025. Bharat Forge produces machined components for engines and structures, engine fan blades and landing gears, with Embraer, Liebherr, Rolls-Royce and Pratt & Whitney among its customers. Samvardhana Motherson International supplies metallics, composites and electrical wiring interconnection systems and has Airbus and Boeing among its customers. The global aerospace industry is dealing with strong demand as well as capacity constraints, with the industry's order backlog exceeding 17,000 aircraft, equivalent to about 12 years of current production capacity. Jefferies sees opportunities across aerostructures, engine components, aircraft systems, electrical interconnects and precision tooling, with India's manufacturing capabilities, engineering talent and cost competitiveness supporting its role in the global aerospace supply chain.
