2 weeks ago
India's defence order inflows decline 17% despite record approvals
India has companies that build ships, submarines and missiles for its military.
Last year, the government approved a huge number of new defence projects worth Rs 6.7 lakh crore.
But the companies received fewer final orders than the year before, about 17% fewer.
This happened because three big programmes - submarines, missile systems and warships - were delayed.
The paperwork for these programmes is almost finished, so experts think the orders will come soon.
Next year, the companies might get orders worth about Rs 3.30 lakh crore, much more than this year.
India is also selling more defence equipment to other countries, which reached a record high.
The government is spending more money on defence every year to keep the country safe.
Overall, experts believe the slowdown was temporary and the defence sector will grow again.
India's listed defence companies saw combined order inflows fall around 17% in FY26 to Rs 1.18 lakh crore from Rs 1.68 lakh crore in FY25.
The Ministry of Defence granted Acceptance of Necessity (AoN) approvals worth Rs 6.7 lakh crore in FY26, creating a large pipeline of potential contracts.
Delays in finalising three major programmes - the P-75I submarine, the Quick Reaction Surface-to-Air Missile (QRSAM) and the Next Generation Corvette (NGC) - drove the decline.
Antique Stock Broking projects combined order intake to jump to Rs 3.30 lakh crore in FY27 and remain elevated at around Rs 3.11 lakh crore in FY28.
Defence exports reached a record Rs 38,400 crore in FY26, and budgeted defence capital expenditure for FY27 stands at Rs 2.19 lakh crore.
- Who
- India's listed defence companies, including Mazagon Dock Shipbuilders, Bharat Electronics, Garden Reach Shipbuilders & Engineers and Bharat Dynamics Limited, along with the Ministry of Defence.
- What
- Combined order inflows for listed defence companies fell about 17% in FY26 to Rs 1.18 lakh crore despite Rs 6.7 lakh crore in government approvals, with a sharp recovery projected as three major programmes near final clearance.
- Where
- India
- When
- FY26 (the 2025-26 financial year), with projections extending to FY27 and FY28.
- Why
- Delays in finalising the P-75I submarine project, the QRSAM system and the Next Generation Corvette programme weighed on order inflows, even as negotiations for these programmes have largely been completed.
Key facts
- FY26 order inflows
- Rs 1.18 lakh crore (down from Rs 1.68 lakh crore in FY25)
- AoN approvals in FY26
- Rs 6.7 lakh crore
- P-75I submarine programme
- Estimated at around Rs 90,000 crore; Mazagon Dock Shipbuilders expected to receive the order
- QRSAM programme
- Estimated at around Rs 30,000 crore; Bharat Electronics expected to benefit
- Next Generation Corvette programme
- Estimated at around Rs 33,000 crore; Garden Reach Shipbuilders & Engineers expected to benefit
- FY27 projected order intake
- Rs 3.30 lakh crore
- Defence exports in FY26
- Rs 38,400 crore (record high)
- FY27 defence capital expenditure budget
- Rs 2.19 lakh crore










