'Electronics, defence, auto-EV, energy and pharma identified as sectors to accelerate India's growth'
New Delhi: A new report notes that India's manufacturing strategy is shifting from assembly-led growth to technology-led value creation.
The report by Boston Consulting Group (BCG) and venture capital firm Z47 has identified five high-priority sectors that can significantly accelerate India's journey toward becoming a USD 30 trillion developed economy by 2047.
The report identified, electronics & semiconductors, defence, automotive & EV, energy, and pharmaceuticals as the engines capable of driving the next phase of expansion.
According to the report, these sectors combine "strong growth, industry push and a clear policy/investment runway" and are aligned with India's goal of lifting manufacturing's share of GDP to nearly 25 per cent by 2047.
India's semiconductor demand is projected to jump from USD 33 billion in 2022 to USD 117 billion by 2030. The study cites major gains in domestic electronics manufacturing, noting that 99.2 per cent of phones sold are made in India today, up from just 26 per cent a decade ago
On defence manufacturing the report says, with global tensions rising, India's defence sector has become a top strategic priority.
It highlights that India's defence budget has "doubled over the last 10 years" to Rs 6.81 lakh crore and that imports have fallen, with "~92 per cent of FY25 contracts...awarded to domestic industry"
Indigenous platforms such as Tejas, Prachand and INS Vikrant demonstrate growing capability, even as the report calls for deeper investments in propulsion, avionics and advanced components.
Talking about India's auto industry, it says it contributes 7.1 per cent of GDP and remains the anchor of manufacturing. EV adoption has surged sharply, with sales rising from 50,000 in 2016 to 2.08 million in 2024 and EV stock reaching 5.45 million, 9 per cent of the global EV park.
The report highlights a major export opportunity as vehicle electronics rise to nearly 50 per cent of total vehicle cost by 2030, urging India to scale domestic production of wiring harnesses, ECUs and battery components.
On energy sector, the report notes that India added a record 29.5 GW of renewable energy in FY24-25, taking total RE to 220 GW. It highlights global supply bottlenecks in transformers and HVDC equipment, positioning India's capital goods firms to benefit from a worldwide investment super-cycle. The report also states India may need 50-70 GWh of battery capacity annually going forward, creating manufacturing opportunities across cells, materials and recycling
On Pharmaceuticals, it says the sector remains a global strength, with India supplying 20 per cent of global generics and 60 per cent of global vaccines.
However, high import dependence on APIs and key starting materials, 60-70 per cent across critical molecules poses risks. The report identifies contract research, development and manufacturing (CRDMO) as a fast-growing opportunity, with potential to scale to USD 22-25 billion by 2035.
It concludes that these five sectors offer the clearest pathways for India to deepen industrial competitiveness, enhance strategic resilience and expand high-value exports as it marches towards the Viksit Bharat 2047 vision.
