India’s defence sector has achieved a historic milestone in FY 2024-25, with total defence production crossing an all-time high of ₹1.5 lakh crore. This marks a significant 18% year-on-year growth when compared to the previous fiscal year’s total output of ₹1.27 lakh crore and nearly a 90% rise compared to five years ago.
The increase reflects the growing strength of both public and private sectors in defence manufacturing. While the Defence Public Sector Undertakings (DPSUs) contributed a dominant 77% share, the private sector’s participation has expanded steadily, rising from 21% to 23%, with a notable 28% growth over the past year.
In parallel with increased domestic production, India’s defence exports have also reached a record high of ₹23,622 crore in FY 2024-25. This marks a 12% growth from the previous year’s figures of FY 2023-24, which were ₹21,083 crore, highlighting India’s emerging status as a reliable defence exporter.
Still, the broader vision remains ambitious, with a goal to scale exports up to ₹50,000 crore by 2029. These efforts are bolstered by a widening global interest in Indian-made systems, such as BrahMos missiles and Akash air defence systems.
Overall, FY 2024-25 represents a turning point for India’s defence sector. With record production, steadily growing exports, a stronger private sector, and high-profile indigenous innovations, the country is increasingly establishing itself as a global defence manufacturing and export powerhouse.
Here is the list of stocks likely to benefit from it
Hindustan Aeronautics Ltd (HAL)
HAL is a premier aerospace and defence company under the Ministry of Defence, Government of India. It is primarily involved in the design, development, manufacture, and maintenance of aircraft, helicopters, engines, and aerospace systems.
Bharat Electronics Ltd (BEL)
BEL is a Navratna PSU under the Ministry of Defence that specialises in advanced electronic products for the Indian Armed Forces. It develops systems like radars, communication equipment, electronic warfare systems, and missile systems.
Mazagon Dock Shipbuilders Ltd
Mazagon Dock is India’s leading shipyard for the construction of warships and submarines for the Indian Navy. It is involved in building stealth frigates, destroyers, and Scorpène-class submarines.
Bharat Dynamics Ltd (BDL)
BDL is a key defence PSU specialising in the manufacture of guided missile systems and allied defence equipment. It supplies missiles like Akash, Konkurs, and Milan to the Indian Armed Forces and collaborates with DRDO for various indigenous missile programs.
Paras Defence and Space Technologies Ltd
Paras Defence is a private sector company focused on defence and space engineering solutions. It is involved in developing high-end defence electronics, electro-optics, drones, and space technologies.
Along with HAL, BEL, and others, companies like Data Patterns, Astra Microwave, Sika Interplant, and Zen Technologies are set to benefit from India’s defence growth. They focus on defence electronics, RF components, aerospace engineering, and training simulators, supporting the country’s push for self-reliance.
Written by Sridhar J
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