3 weeks ago
India's Defence Industry Projected to Grow 68% in Three Years
India is a big country that buys many weapons to keep its people safe.
For a long time, India bought most of its military equipment from other countries.
Now India wants to build more of its own tanks, planes and ships.
A company called CareEdge Ratings studied this and says India's defence industry will grow very fast, from about Rs 1.78 lakh crore to Rs 3 lakh crore in the next three years.
The Indian government is spending more money on defence, around Rs 7.85 lakh crore this year.
Indian companies are also selling weapons to other countries, earning a record Rs 38,424 crore in one year.
They sell to more than 80 countries around the world.
India still buys some advanced equipment like fighter jets from other countries, especially Russia.
The plan is to make so much that one day India will be a big maker and seller of defence equipment.
CareEdge Ratings projects India's defence industry to grow from Rs 1.78 lakh crore in FY26 to Rs 3 lakh crore by FY29, a rise of nearly 68% at a CAGR of around 19%.
The Ministry of Defence was allocated Rs 7.85 lakh crore in the FY27 Union Budget, about 15% higher than the FY26 budget estimate.
India's defence exports hit a record Rs 38,424 crore in FY26, up 62.66% from FY25, with exports now going to more than 80 countries.
India remained the world's second-largest arms importer in 2021-25, accounting for about 8.2% of global arms imports, with Russia's share of imports falling to around 40%.
The government aims to take defence exports to Rs 50,000 crore by FY29 and Rs 2.8 lakh crore by 2047 under the Viksit Bharat vision.
- Who
- India's defence industry, including state-owned Defence Public Sector Undertakings (DPSUs) and private companies, as assessed by CareEdge Ratings.
- What
- The defence industry is projected to grow nearly 68%, from Rs 1.78 lakh crore in FY26 to Rs 3 lakh crore by FY29, driven by government spending, indigenisation, private-sector participation and record exports.
- Where
- India.
- When
- Over the next three years, from FY26 to FY29.
- Why
- India seeks to reduce dependence on imported military equipment and become a global defence manufacturing and export hub, supported by higher budget allocations and policy reforms.
Key facts
- Projected industry size (FY29)
- Rs 3 lakh crore
- Industry size (FY26)
- Rs 1.78 lakh crore
- Projected growth
- Nearly 68% over three years; ~19% CAGR through FY29
- FY27 defence allocation
- Rs 7.85 lakh crore (~15% higher than FY26)
- Record defence exports (FY26)
- Rs 38,424 crore (up 62.66% from FY25)
- Export markets
- More than 80 countries; top markets 2021-25 were Myanmar, Philippines and Armenia
- Export targets
- Rs 50,000 crore by FY29; Rs 2.8 lakh crore by 2047
- Global arms imports share (2021-25)
- Around 8.2% of global total — world's second-largest importer
Quotes
Pulkit Agarwal
Director at CareEdge Ratings
“"India’s defence exports have also scaled new highs, reaching Rs 38,424 crore in FY26, supported by growing global acceptance of indigenous defence products and increasing integration into international supply chains."”
financialexpress.com
“"India’s defence sector is witnessing a structural transformation driven by rising indigenisation, higher capital outlay, and increasing private sector participation."”
financialexpress.com
Sources
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