Avendus Maps Six New-Age Industrial Sectors for India

Avendus Capital has published a report mapping six new-age industrial sectors where India can reduce import reliance and build globally competitive manufacturing. The sectors are defence and aerospace, space technology, robotics and automation, semiconductors, energy transition and advanced materials.

The opportunity is being shaped by a USD 3 trillion (INR 285 lakh crore) global AI-infrastructure investment cycle, rising focus on energy infrastructure and geopolitical security. The report identifies 2027–28 as a critical window for commercialisation, as the first wave of Indian capacity moves from policy support and project approval to production.

India’s semiconductor consumption is projected to more than double from USD 49.5 billion (INR 4.70 lakh crore) in 2025 to USD 106.5 billion (INR 10.12 lakh crore) by 2030, creating opportunities in chip design, packaging, testing and specialised materials. The space economy is targeted to grow more than threefold from about USD 13 billion (INR 1.24 lakh crore) in 2025 to USD 44 billion (INR 4.18 lakh crore) by 2033.

Domestic defence production is projected to reach about USD 31.6 billion (INR 3.00 lakh crore) by 2030. Rising domestic adoption and import substitution are expected to lift India’s robotics market about 4x to USD 4.6 billion (INR 43,700 crore) by 2030.

In clean energy, manufacturing is expected to move one step upstream over the next five years. By the end of the decade, India is set to be among a small number of countries outside China with an integrated solar chain from ingots to modules, several gigawatt-hour-scale battery cell plants, and commercial production of indigenous electrolyser stacks and rare-earth-free motor technology.

The report compares advanced materials to India’s electronics manufacturing industry a decade ago, with rising domestic demand, heavy import dependence and a first wave of domestic capacity. Recycling is expected to scale first, followed by battery materials. Rare-earth magnet manufacturing is likely to advance with policy support, while specialty materials could benefit from defence and aerospace demand.

Koushik Bhattacharyya, Managing Director and Head, Industrials Investment Banking, Avendus Capital, said: “India’s new-age manufacturing opportunity is substantial, but its right-to-win manifests in select segments. With more than 80% of the USD 3 tn AI-infrastructure investment yet to be deployed globally, the India opportunity is driven by a trifecta of factors: a large sovereign and domestic demand base, deep engineering talent and robust policy framework.”