The Indian defense sector has witnessed significant growth over the past few years, driven by the government’s focus on self-reliance through the “Atmanirbhar Bharat” initiative. With increasing defence budgets and strategic emphasis on modernizing military equipment, India is actively promoting indigenous defense manufacturing.
Key players in this sector include Bharat Electronics Limited (BEL), known for its defense electronics; Hindustan Aeronautics Limited (HAL), a leader in aircraft manufacturing; and Bharat Forge, which specializes in artillery systems and military vehicles. Larsen & Toubro (L&T) is also a major contributor to defense infrastructure and weaponry systems.
Share Price
The shares of HAL(Hindustan Aeronautical Limited) and BEL ( Bharat Electricals Limited) jumped 5.7% and 3.78% respectively. HAL closed at Rs. 3,729 and BEL ended the day at Rs. 284.5. While the shares of Larsen & Turbo, Bharat Forge, and Lokesh Machines rose within the range of 3-6% during the day.
Recent Update
Defence Secretary’s Contract Expansion Plan
India’s Defence Secretary, Rajesh Kumar Singh, announced an ambitious goal to significantly expand defence contracts by the end of the current financial year. Speaking at an event on decoding the Union Budget, Singh revealed that the Ministry intends to double the value of defence orders compared to last year.
In FY24, the defence sector signed contracts worth ₹1.08 lakh crore, which has already been surpassed this year with ₹1.15 lakh crore in contracts. Singh’s target is to reach ₹2 lakh crore or more by the end of FY25.
Ensuring Long-Term Stability in Defence Sector
A key part of Singh’s strategy is ensuring long-term stability for the defence industry by keeping order books filled for the next four to five years. He emphasized that both Original Equipment Manufacturers (OEMs) and smaller component manufacturers should have clear visibility of their future orders.
This will ensure a consistent flow of business, mitigate uncertainty, and help in fulfilling critical capability gaps within India’s defence infrastructure.
Largest Ever Number of Defence Contracts
Defence Secretary, Rajesh Kumar Singh confirmed that the current financial year will see the largest number of defence contracts signed, further solidifying India’s growing defence modernization. These contracts will cover various defence sectors and boost the overall capacity of India’s armed forces, strengthening the country’s security.
Indigenization and US Procurement
Regarding international procurement, Singh also discussed India’s ongoing defence deals with the United States. While Trump urged India to procure more from US companies, Singh stressed that these deals would only proceed if the equipment meets quality and indigenization standards, which are critical for India’s defence objectives.
Written By: Dipangshu Kundu
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