Billion dollar boom: Jefferies identifies six sectors driving ‘India’s New Industrial Revolution’

Global investment bank Jefferies, in its latest report ‘India’s New Industrial Revolution’, has highlighted sectors that are poised for growth due to a combination of India's large domestic market, greater participation from private companies and continued government policy support.Jefferies has identified several policy measures that it believes are helping these newer sectors expand, driving India’s next phase of industrial growth. These include allowing greater private-sector participation in space, providing tax holidays for data centres, offering incentives for semiconductors, electronics and solar, promoting localisation and government purchases of GPUs.India’s next phase of industrial growth: Which sectors will drive it?Jefferies has identified semiconductors, space, electronics, solar, aerospace and data centres as the top 6 themes. Let’s take a look:Electronics: According to Jefferies, India's electronics industry is gradually shifting beyond basic assembly. There is now greater emphasis on domestic value addition and component manufacturing. Domestic value addition in mobile components is expected to increase from below 20% to around 50% over the next 6 years.“Electronics exports have grown sharply, while schemes such as ECMS (components scheme) and MPMS (Mobile 2.0) aim to deepen backward integration and reduce import dependence. We forecast ECMS to cover ~50% of Mobile component value (BoM) over the next 6-Y vs Get the latest Business News and Live updates. Download the TOI app.