Rising govt spending, export demand give Indian defence cos ₹15trn runway

Subscribe to enjoy similar stories.The top private and state-owned defence companies are looking at a ₹15 trillion revenue opportunity over the next five fiscal years, according to brokerage Dam Capital on 27 April, as rising government capital expenditure and an export push combine to reshape the country's arms sector into a global supplier.The windfall is being spread across five big firms, Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, Mazagon Dock Shipbuilders, and Larsen & Toubro's Precision Engineering & Systems division, with exports projected to be over ₹72,000 crore for the period, according to industry projections and company disclosures. Defence exports already hit ₹38,424 crore in FY26, as per defence ministry data, and the government has set a target of ₹50,000 crore by FY29 at a compounded annual growth rate of 9%.The exports are being driven by two key points: increasing localized production of light to heavy artillery, and the latter leading to exports of India-made defence equipment to regions such as West Asia, central and south-east Asia, and Africa as well.This is a change for the country.

For decades, India was among the world's largest arms importers; it is now courting buyers across West Asia, Southeast Asia, Central Asia, and Africa with domestically produced systems ranging from surface-to-air missiles to self-propelled artillery. Bharat Dynamics, one of the more export-oriented state firms, derived 38% of its ₹3,345 crore FY25 revenue from overseas sales alone.“There is a lot of interest in our products, like the Akash Weapon Systems, from potential buyers in the international defence market.