Synopsis : India’s next industrial growth cycle is taking shape across semiconductors, data centres, electronics, solar and aerospace, with Jefferies identifying 16 Buy-rated listed stocks linked to the opportunity. India is building new industrial opportunities across space, semiconductors, data centres, electronics, solar manufacturing and aerospace, with government support, private investment, domestic demand and the country’s manufacturing and engineering capabilities driving the next phase of growth, according to Jefferies.
The brokerage’s September 8 report, “India’s New Industrial Revolution”, examines how these six sectors are developing and identifies several listed companies rated ‘Buy’ across these themes.
India already has significant scale in industries such as steel, cement, automobiles, refining, mobile phones and solar modules. Jefferies said the next set of opportunities is emerging from areas where policy support and private participation are helping build new domestic capabilities.
Space: India’s ecosystem moves towards commercialisation
India’s space start-up ecosystem has grown 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 FY26. Government support includes the Rs 10,000 million Venture Capital Fund, the Rs 5,000 million Technology Adoption Fund and the IN-SPACe Seed Fund Scheme.
Jefferies said the Indian Space Policy 2023 opened the entire space value chain to private companies, while the Indian National Space Promotion and Authorisation Centre provides a single-window mechanism for authorising and promoting space activities.
The brokerage expects India’s space economy to expand five-fold between 2023 and 2030 to $40-45 billion and reach $100 billion by 2040.
The report points to several private companies moving towards commercial operations. Skyroot Aerospace became the first private Indian company to place payloads into orbit with the Vikram-1 launch in July 2026.
Pixxel operates high-resolution hyperspectral Earth observation satellites and has secured a National Aeronautics and Space Administration contract. Agnikul Cosmos has developed a rocket powered by a single-piece 3D-printed semi-cryogenic engine, while Digantara has launched a commercial space-surveillance satellite and developed LiDAR-based technology for detecting orbital debris.
Jefferies noted that Indian space companies are progressing across launch vehicles, satellite systems, remote sensing, communications, navigation and planetary exploration as private participation expands.
“Indian space start-ups are now progressing from early-stage innovation to commercial execution,” Jefferies said.
Semiconductors: Jefferies on Kaynes Technology
Kaynes Technology India Ltd. has begun commercial production at its semiconductor packaging facility in Sanand, Gujarat.
Production started in March 2026, initially focusing on Intelligent Power Modules for automotive and industrial applications. The company has also signed a multi-year supply agreement with Alpha & Omega Semiconductor covering 11 package types.
The Sanand facility has been designed to scale to about 6 million units a day at full capacity, while the final phase is expected to be commissioned by 2028.
Kaynes management expects semiconductor packaging revenue to ramp meaningfully from FY28, with revenue visibility of Rs 2,500 crore over the next five years. The company has also partnered with AOI Electronics for advanced packaging technology and Mitsui & Co for supply-chain support.
Jefferies also points to Kaynes’ participation in India’s wider electronics component manufacturing push. The company has received approvals under the Electronics Component Manufacturing Scheme for multi-layer printed circuit boards, high-density interconnect printed circuit boards, copper-clad laminates and camera modules.
The semiconductor opportunity is supported by a large investment pipeline. Jefferies said India has about US$20 billion of semiconductor investments, including a chip fabrication facility under construction and several outsourced semiconductor assembly and test projects beginning production.
A new incentive plan of about US$13 billion is expected to support further ecosystem development and increase domestic value addition, including in chip design.
“Kaynes management expects semiconductor packaging revenues to ramp meaningfully from FY28,” Jefferies said.
Data centres: Bharti Airtel and the $45 billion opportunity
India’s data centre capacity is expected to increase sharply as demand from hyperscalers, banking, financial services and insurance companies continues to grow.
Jefferies expects India’s colocation data centre capacity to rise from about 2 gigawatts in 2026 to roughly 10 gigawatts over the next five years.
The brokerage estimates that this expansion could create a US$9 billion revenue opportunity for data centre operators. It expects associated facility investment to reach about US$45 billion between CY27 and CY31.
This spending would cover power and electrical systems, land and shell, racks and fit-outs, cooling and network infrastructure.
Bharti Airtel’s exposure to the opportunity comes through Nxtra. Jefferies includes Airtel Nxtra among India’s existing data centre operators and expects investments from Bharti Airtel, AdaniConneX and Tata Consultancy Services to support additional capacity.
The spending opportunity extends well beyond data centre operators.
Jefferies estimates $16 billion of expenditure on power and electrical systems between CY27 and CY31, making this the largest component of expected facility capital expenditure.
Land and shell is expected to account for $11 billion, racks and fit-outs for $9 billion, cooling for $7 billion and network infrastructure for $2 billion.
The brokerage has a broad list of ‘Buy’-rated companies linked to the theme, including Bharti Airtel, Hitachi Energy India, Cummins India, Lodha Developers, Polycab India, Siemens Energy India, KEI Industries, Voltas, Kirloskar Oil Engines and Finolex Cables.
Jefferies explained that power infrastructure is expected to account for the largest share of data centre capital expenditure.
Hitachi Energy India, Siemens Energy India and GE Vernova T&D India have the highest exposure to data centre capital expenditure among the power transmission and distribution companies covered by the brokerage.
Cummins India has the highest market share in genset supplies in India, while Kirloskar Oil Engines has recently won an order from an Indian company setting up a data centre.
“India’s data centre capacity could grow 5x over the next five years, led by strong demand from hyperscalers and domestic enterprises,” Jefferies said.
Electronics: Jefferies on Samvardhana Motherson International
India’s electronics production increased from Rs 5.5 lakh crore in FY21 to Rs 12.1 lakh crore in FY26.
Electronics exports also recorded strong growth over the same period, with smartphones becoming India’s largest exported product category in FY26.
Jefferies expects the next stage of the industry to come from greater domestic component manufacturing.
The brokerage expects the Electronics Component Manufacturing Scheme to cover about 50% of mobile component value over its six-year tenure, compared with less than 20% currently.
Printed circuit boards, including high-density interconnect and multi-layer boards, are among the areas identified for domestic manufacturing, with a $5 billion total addressable market and 85-90% import dependence.
Samvardhana Motherson International is among the companies participating in domestic component manufacturing under the Electronics Component Manufacturing Scheme. Kaynes Technology India is the other ‘Buy’-rated company in Jefferies’ electronics basket.
The government has also increased support for the programme. Jefferies said the scheme’s budget allocation has been raised to Rs 40,000 crore from the initial Rs 22,900 crore announced in April 2025.
The scheme has received 106 project approvals, with committed capital expenditure of Rs 1,15,400 crore and projected component production worth Rs 10,34,800 crore over its six-year tenure.
Jefferies said the programme is intended to increase domestic value addition in electronics manufacturing, with companies investing across component categories that have historically relied heavily on imports.
“India’s electronics ecosystem is entering the next phase of growth with a greater focus on domestic value addition and component manufacturing,” Jefferies said.
Solar manufacturing: Premier Energies and Emmvee
India has emerged as the world’s second-largest solar photovoltaic manufacturer, with about 35 gigawatts of solar cell capacity operational and another 100 gigawatts under construction.
Jefferies expects policy measures covering domestic modules, cells, ingots and wafers to support greater localisation across the manufacturing chain.
The brokerage expects about 90% of solar manufacturing value addition to be localised by 2030.
Solar installations are expected to reach 70 gigawatts direct current in FY28, representing an 11% CAGR from FY26 to FY28.
Premier Energies is rated ‘Buy’ with a target price of Rs 1,205.
Jefferies expects the company’s EBITDA to grow at a 27% CAGR from FY26 to FY29. The brokerage points to Premier’s cell manufacturing expertise, profitability, large order book and low leverage on the balance sheet.
Emmvee Photovoltaic Power is also rated ‘Buy’, with a target price of Rs 440.
Jefferies describes Emmvee as its preferred pick because of its early entry into Tunnel Oxide Passivated Contact technology, net-debt-free balance sheet, profitability and 9.9 GW order book.
The brokerage expects its EBITDA to grow at a 33% CAGR from FY26 to FY29.
Jefferies expects the solar cell market to remain in shortage during FY27 before reaching demand-supply equilibrium in the second half of FY28.
It expects wafer capacity to reach about 80 GW no earlier than the end of FY30.
“India is emerging as the second-largest solar photovoltaic manufacturing hub globally, with a rapidly expanding cell manufacturing base,” Jefferies said.
Aerospace: Bharat Forge and India’s global opportunity
India’s aerospace exports under aircraft, spacecraft and parts increased from US$1.4 billion in FY20 to US$7 billion in FY25.
Boeing sources more than $1.4 billion annually from more than 375 suppliers in India, while Airbus sources more than $1.6 billion annually in components and services from the country and plans to increase annual sourcing to $2 billion before 2030.
Jefferies sees opportunities across aerostructures, engine components, aircraft systems, electrical interconnects and precision tooling.
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.
Belrise Industries makes thrust reversers, nacelle parts and satellite structural components through its Chester Hall acquisition.
All three companies carry ‘Buy’ ratings in Jefferies’ aerospace valuation matrix.
The global aerospace industry is dealing with strong demand as well as capacity constraints.
Jefferies said the industry’s order backlog exceeds 17,000 aircraft, equivalent to about 12 years of current production capacity. Constraints are present across engines, castings, forgings and specialised components.
India’s manufacturing capabilities, engineering talent and cost competitiveness are supporting its role in the global aerospace supply chain.
Jefferies also sees an opportunity in maintenance, repair and overhaul as India’s domestic aircraft fleet expands.
“Aerospace industry is facing structural supply-side constraints despite enjoying strong demand and long order book,” Jefferies said.
India’s new industrial opportunities
Jefferies’ report brings together six industries where India is building new capacity and capabilities.
Space is expanding through private start-ups, while semiconductor manufacturing is moving into commercial production.
Data centres are creating demand for power, cooling, construction and network infrastructure, while electronics manufacturing is moving towards greater domestic component production.
Solar manufacturing is becoming more integrated across modules, cells, wafers and ingots, while aerospace suppliers are gaining from global aircraft demand and India’s growing role in the international manufacturing chain.
Across these sectors, Jefferies’ ‘Buy’-rated names include Kaynes Technology, Bharti Airtel, Samvardhana Motherson International, Premier Energies, Emmvee Photovoltaic Power, Bharat Forge and several other companies in its valuation matrix.
The report’s assessment is that government incentives, domestic demand, private capital, engineering capabilities and manufacturing investment are creating opportunities in industries that are becoming increasingly important to India’s industrial growth.
Conclusion
Jefferies’ assessment puts six emerging industries at the centre of India’s next industrial growth phase.
Space is seeing rapid expansion in private participation, while semiconductors are moving towards commercial production. Data centres are creating demand across power, cooling and related infrastructure, electronics manufacturing is moving deeper into components, solar is expanding across cells and other parts of the manufacturing chain, and aerospace suppliers are benefiting from strong global aircraft demand and a large order backlog.
The brokerage’s ‘Buy’ list spans 16 unique listed companies across these themes, with several companies participating in more than one opportunity.
Kaynes Technology features in both semiconductors and electronics, while Samvardhana Motherson International features in electronics and aerospace.
The report also identifies a wider group of companies linked to the data centre and aerospace opportunities.
The broader theme is clear: India’s next industrial cycle is not being driven by a single sector. Instead, it is developing across multiple industries where policy support, private investment, domestic demand and global supply-chain diversification are creating new opportunities.
Disclaimer : This article is based solely on information contained in Jefferies’ “India’s New Industrial Revolution” report dated September 8, 2026. The ‘Buy’ ratings, target prices, estimates, company references and other figures are those stated in the report or calculated directly from figures provided in the report. This article is for informational purposes only and should not be considered investment advice, a recommendation to buy or sell any security, or a substitute for independent research. Stock market investments are subject to market risks, and readers should consult a qualified financial adviser before making investment decisions.
