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Brokerage firm Jefferies in a report said that large domestic opportunity is driving private participation in emergent industries in India across Space, Semi & Electronics, Datacenters and Solar. The brokerage firm further said that support from the government is also visible here with action such as opening up space to private sector, long tax holiday for DCs, large incentive schemes for Semi, Electronics & Solar, localisation requirements, GPU purchases etc. Private sector takes India’s space industry to the next level. India is one of the few countries with strong and globally competitive space capabilities. The government opened the space sector to private companies in 2020 and aims to grow the space economy nearly fivefold between 2023 and 2030 to $40–45 billion. Startups are now moving from early-stage innovation to commercial operations, with companies such as Skyroot working on orbital launches, Pixxel developing high-resolution Earth-observation satellites, Agnikul building 3D-printed rocket engines, and Digantara developing satellites for space surveillance, said the firm. According to the report, India’s semiconductor ambitions are moving from plans to actual execution, with around $20 billion in investments. This includes a chip fabrication plant under construction and several OSAT projects that are starting production. A new $13 billion incentive plan is expected to further strengthen the ecosystem and increase value addition, including in chip design. While challenges such as supply-chain development, skilled talent and global competition remain, India is laying the foundation for a strong semiconductor industry. India’s data centre sector is quickly becoming a key part of the country’s digital infrastructure. Colocation capacity has grown five times in the last five years to around 2 GW, driven by increasing cloud adoption, digitalisation and data localisation requirements. “We expect capacity to grow another 5x to ~10GW over the next five years, supported by favorable cost economics, policy support and rising hyperscaler demand. We calculate this expansion represents a US$9bn revenue opportunity for data center operators and a US$45bn investment opportunity across power, cooling, construction and network infrastructure,” the report said. India’s electronics industry is moving beyond assembly towards greater domestic value addition and component manufacturing. Electronics exports have grown significantly, while initiatives such as ECMS and MPMS (Mobile 2.0) are aimed at strengthening local component production, increasing backward integration and reducing dependence on imports. “We forecast ECMS to cover ~50% of Mobile component value (BoM) over the next 6-Y vs <20% now. PCB (both HDI + Multi-layer) is a focus area for Components, with S5bn TAM, 85-90% imports,” the report added. India has become the world’s second-largest solar PV manufacturer, with around 35 GW of solar cell manufacturing capacity already operational and another 100 GW under construction. Government measures such as ALMM (Approved List of Models and Manufacturers), domestic content requirements and PLI (Production-Linked Incentive) schemes are helping expand local manufacturing of solar cells, wafers and ingots. The firm anticipates that by 2030, around 90% of the solar manufacturing value chain is expected to be localised in India. For Aerospace sector, the report said that India is emerging as a key beneficiary of the growing global demand for aerospace products. The country has an opportunity to benefit from its cost-competitive manufacturing capabilities and skilled engineering talent. Indian aerospace exports are also growing, with Boeing and Airbus already sourcing products worth around $1.4–1.6 billion annually from India. Companies such as Aequs, Azad, BHFC, DYTC, Rane, Motherson and Sansera have become suppliers to global aircraft manufacturers and Tier-1 companies and are steadily expanding their presence in the aerospace sector. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions. Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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