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India's defence order inflows decline 17% despite record approvals

India's defence order inflows decline 17% despite record approvals
Why defence order inflows fell 17% despite record Rs 6.7 lakh crore in approvals · financialexpress.com

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.

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

Sources

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