India’s Technology Economy Takes Shape
India is undergoing a major transformation in how it builds and uses technology. According to a recent Jefferies report, six key industries are driving this shift: semiconductors, electronics, space, data centers, solar equipment, and aerospace.
The numbers underline the momentum. India’s space industry has grown fivefold and is projected to reach USD 40-45 billion by 2030. Semiconductor investments have hit around USD 20 billion, with an additional USD 13 billion incentive plan in the works. Data centers have also seen explosive growth, expanding fivefold over the past five years and expected to hit 10 gigawatts in the next half-decade.
Solar power remains one of India’s strongest sectors. The country is the world’s second-largest photovoltaic manufacturer, and by 2030, it aims to cover 90% of the entire solar value chain.
Dipal Dutta, CEO of RedoQ, encapsulated the shift: “By expanding deep-tech capabilities across semiconductors, space systems, and next-generation data centers, the nation isn’t just participating in the global supply chain, it is actively rewiring it.”
From IT Services to Building Technology
India’s traditional technology story was centered on IT services, software, and outsourcing. Companies built software for global clients and handled tech work for businesses worldwide. The new model is broader and more ambitious. India is now striving to manufacture more of the technology it uses—chip plants underpin a local semiconductor industry, electronics factories move beyond assembly, data centers support cloud and AI services, and space and aerospace firms push deeper into global markets.
The fundamental change is clear: India is transitioning from being a provider of technology services to becoming a builder of the hardware and systems that power them. If this growth trajectory continues, these six sectors could elevate India’s role in the global technology market significantly.