India's precision machining and auto parts industry is projected to expand at a 10% annual revenue rate between fiscal 2026 and fiscal 2030, according to a new report from Goldman Sachs.
The investment bank attributes this growth trajectory to the sector's strategic diversification beyond traditional automotive components into high-value areas such as semiconductors, defence, and aerospace.
EBITDA margins are expected to compound at 15% annually over the same period, reflecting the higher profitability associated with these advanced manufacturing segments.
EBITDA margins are expected to compound at 15% annually over the same period, reflecting the higher profitability associated with these advanced manufacturing segments.
The forecast underscores the deepening integration of India's industrial base into global technology supply chains.
As domestic manufacturers pivot toward semiconductor packaging and defence-grade components, the sector is capturing value from both government-led capital expenditure and private-sector demand for localized production.
This shift aligns with broader trends in Asian equities, where semiconductor stocks have recently surged on optimism surrounding AI infrastructure spending.