New Delhi: With the government’s thrust on the Make in India initiative, defence production has surged to historic highs. This rise in defence manufacturing has also led to substantial returns for investors in major defence manufacturing PSUs over the past year.

According to data from the National Stock Exchange (NSE), the shares of the largest defence manufacturing Public Sector Undertaking (PSU), Hindustan Aeronautics Limited (HAL), have surged by more than 197 per cent within the last year.

Cochin Shipyard Limited has experienced even more impressive gains, with its stock soaring by over 913 per cent in the same period. This phenomenal performance has positioned Cochin Shipyard as a highly favoured defence stock among investors.

Meanwhile, Bharat Electronics Limited (BEL), the second-largest company in terms of market capitalization, has also provided substantial returns to its shareholders, with a growth of over 167 per cent in a year.

The Defence Ministry highlighted on Friday that the value of defence production has been on a consistent upward trajectory over the past five years, growing by more than 60 per cent since 2019-20.

Market experts attribute the surge in defence production and exports to the impressive rise in the returns of defence stocks. Solar Industries Limited, a company specializing in explosives manufacturing, has seen its shares gain over 230 per cent in the past year, according to the NSE.

Additionally, Bharat Dynamics Limited (BDL), another government-owned PSU that manufactures guided missiles and other defence equipment for the Indian Armed Forces, has delivered a return of 208 per cent to its shareholders over the past year.

The Ministry of Defence emphasized that the surge in defence production has been driven by the successful implementation of government policies and initiatives focused on achieving ‘Atmanirbharta’ or self-reliance.

As per the data collected from all Defence Public Sector Undertakings (DPSUs), other PSUs involved in defence manufacturing, and private companies indicate that the value of defence production in India has reached an unprecedented high.

“The total value of defence production in the country has risen to ₹1,26,887 crore, reflecting a 16.7 per cent growth over the previous financial year’s production value of ₹1,08,684 crore in FY 2022-23” said the defence ministry.

The surge in defence production highlights the performance of the defence manufacturing industry, which has not only contributed significantly to the nation’s economic growth but also provided substantial returns to investors.

(With Inputs From Agencies)