The Indian defence sector is experiencing significant growth, with projections indicating a compound annual growth rate (CAGR) of 14% from FY 2024 to FY 2030. This growth is driven by several factors, including the government's focus on indigenisation, increasing export opportunities, and rising geopolitical tensions globally. According to a recent report by Jefferies, India's defence spending is expected to double during this period, creating a market opportunity valued between $90 billion and $100 billion.

Record Production Levels: In FY 2024, India's defence production reached a record high of approximately ₹1.27 trillion, marking a 16.7% increase from the previous year. This growth is attributed to effective government policies aimed at enhancing self-reliance and boosting indigenous production capabilities.

Export Growth: India's defence exports have surged dramatically, with a reported increase of 78% in Q1 FY 2024-25, reaching ₹6,915 crore. The total defence exports for FY 2023-24 amounted to $2.5 billion, reflecting a 25% increase from the previous year. The government aims to achieve $6 billion in defence exports by FY 2029, with promising markets identified in regions like the Middle East and Africa.

Investment And Future Prospects: Analysts predict that the Indian defence sector will see substantial investments in research and development, modernisation of armed forces, and support for domestic manufacturers. The upcoming budget for FY 2025 is anticipated to include increased allocations for these areas, further propelling the sector's growth.

the Indian defence industry is on a robust growth trajectory, fuelled by government initiatives aimed at enhancing self-sufficiency and expanding export capabilities. The combination of rising domestic production and strategic international partnerships positions India as a significant player in the global defence market.