India's next $45 bn capex cycle: Jefferies names 16 'Buy' stocks led by Kaynes, Bharat Forge

India's next $45 billion capex cycle is taking shape across semiconductors, data centres, electronics, solar and aerospace, with Jefferies identifying 16 'Buy' stocks led by Kaynes, Bharat Forge. The brokerage's report, India's New Industrial Revolution, examines the growth of these six sectors and identifies companies rated 'Buy' across themes. India already has significant scale in industries such as steel, cement, automobiles, refining, mobile phones and solar modules. Jefferies said the next set of opportunities is emerging from areas where policy support and private participation are helping build new domestic capabilities. The Indian Space Policy 2023 opened the entire space value chain to private companies, while the Indian National Space Promotion and Authorisation Centre provides a single-window mechanism for authorising and promoting space activities. Jefferies expects India's space economy to expand five-fold between 2023 and 2030 to $40-$45 billion and reach $100 billion by 2040. Kaynes Technology India Ltd. has begun commercial production at its semiconductor packaging facility in Sanand, Gujarat, with production starting in March 2026 and expected to reach 6 million units a day at full capacity by 2028. The company has signed a multi-year supply agreement with Alpha & Omega Semiconductor and partnered with Mitsui & Co for supply chain support. Jefferies also points to Kaynes' participation in India's wider electronics component manufacturing push, with the company receiving approvals under the Electronics Component Manufacturing Scheme. India's space start-up ecosystem has grown from one company in 2014 to over 400 in 2026, covering launch vehicles, satellites, Earth observation, propulsion and downstream space applications. Cumulative private investment reached about $0.6 billion by financial year 2026. The Rs 10,000 million Venture Capital Fund, the Rs 5,000 million Technology Adoption Fund and the IN-SPACe Seed Fund Scheme provide government support for the sector. Skyroot Aerospace became the first private Indian company to place payloads into orbit with the Vikram-1 launch in July 2026. Pixxel operates high-resolution hyperspectral Earth observation satellites and has secured a National Aeronautics and Space Administration contract. Agnikul Cosmos has developed a rocket powered by a single-piece 3D-printed semi-cryogenic engine, while Digantara has launched a commercial space-surveillance satellite and developed Light Detection and ranging-based technology for detecting orbital debris. Bharat Forge has been named as one of the 'Buy' stocks, along with 15 other companies. The report highlights the growth of the Indian space industry, with the sector expected to play a significant role in the country's industrial growth cycle.