India’s new-age manufacturing sector could benefit significantly from a $3 trillion global AI infrastructure investment cycle, according to a report by Avendus Capital.
The investment banking firm has identified defence and aerospace, space technology, robotics and automation, semiconductors, energy transition, and advanced materials as the sectors poised to drive India’s next phase of industrial growth, offering key opportunities for domestic companies.
The report highlighted 2027–28 as a critical period for commercialisation as companies move from policy support and project approvals towards production.
The opportunity is being driven by rising global investments in AI infrastructure, increasing demand for energy infrastructure, and growing geopolitical security concerns. India’s domestic demand, engineering talent and policy framework could help manufacturers reduce import dependence and build globally competitive capabilities.
“India's new-age manufacturing opportunity is substantial, but its right-to-win manifests in select segments,” said Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital.
With more than 80% of the $3 trillion AI infrastructure investment yet to be deployed globally, India has an opportunity to capitalise on its domestic demand base, engineering capabilities, and policy support, he said.
Semiconductors and space technology are among the segments showing significant growth potential. India’s semiconductor consumption is projected to more than double from $49.5 billion in 2025 to $106.5 billion by 2030, creating opportunities in chip design, packaging, testing, and specialised materials.
India’s space economy is expected to expand more than threefold, from approximately $13 billion in 2025 to $44 billion by 2033. 6 billion by 2030, supported by wider adoption and import substitution.
Source link
