1 month ago
India Eyes Air Defence as Next Major Defence-Making Megatrend
India is building a big air‑defence system that uses many different parts like radars, sensors, and several types of missiles.
The government has approved a huge budget of about ₹52,000 crore for projects such as Akash, MRSAM, and VSHORADS.
Big public companies like DRDO, Bharat Electronics Limited, and Bharat Dynamics Limited design and build the main parts.
Small private companies can make the smaller pieces like electronics and sensors that fit into many projects.
The market will keep growing because the army, navy, and air force will need to keep the systems working, replace parts, and buy more missiles for years to come.
India also wants to sell some of these systems to protect airports, factories, and other important places from drones.
This could become a big industry for India, not just a one‑off purchase of a missile.
India’s air defence now relies on a network of radars, sensors, command centres, and multiple missile types rather than a single system.
July 2026 Defence Acquisition Council granted an Administrative Order of ₹52,000 crore for programmes like Akash, MRSAM, VSHORADS, and counter‑drone systems.
Public‑sector firms—DRDO, Bharat Electronics Limited, Bharat Dynamics Limited—lead design, integration, and large‑scale production of key components.
Private‑sector opportunities lie in specialised electronics, sensors, and components that feed multiple defence and aerospace programmes.
The market will grow through ongoing maintenance, upgrades, and missile replenishment, potentially extending to civilian counter‑drone protection.
- Who
- Indian Ministry of Defence, DRDO, Bharat Electronics Limited, Bharat Dynamics Limited, Indian armed forces
- What
- Development and procurement of integrated air defence systems and expansion of the defence manufacturing base
- Where
- India
- When
- July 2026 AoN approvals; ongoing since 2023; future decade
- Why
- To counter diverse aerial threats and create a sustainable defence‑manufacturing market
Key facts
- Key programmes
- Akash, Akashteer, MRSAM, VSHORADS, QRSAM, IADWS, Kusha
- July 2026 AoN value
- ₹52,000 crore
- Public‑sector leaders
- DRDO, Bharat Electronics Limited, Bharat Dynamics Limited
- Private‑sector focus
- electronics, sensors, components
- Lifecycle market
- maintenance, upgrades, missile replenishment
- Potential civilian market
- counter‑drone, critical infrastructure protection
Sources
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