Giridhar Aramane, India’s Defence Secretary highlighted the government’s strategic emphasis on the country’s defence sector, In an interview with CNBC-TV18.
According to CNBC-TV18, the Defence Secretary stated that the capital outlay in the defence sector for acquisitions and modernization in the forthcoming budget might grow by 5%-7.5%.
He stated that India’s defence output exceeded Rs 1 lakh crore in FY23, while exports exceeded Rs 16,000 crore. Secretary stated that he anticipates defence output to exceed Rs 1.5 lakh crore in FY24 and may even exceed Rs 1.75 lakh crore. Also mentioned is that In 2023, the government approved acquisition proposals of 3.5 lakh crore in the defence sector.
He further stated that export orders are on pace to exceed Rs 20,000 crore. Furthermore, the private sector is expected to get 45% of new orders in the Fiscal year of 2024.
According to the secretary, the government will shortly release a new strategy aimed at the private sector. The goal of this initiative would be to support the development of new defence technology.
Apart from that, he emphasised upcoming plans in the Indian defence sectors, such as the privatisation of defence PSUs, such as stake divestment followed by an export order of defence equipment, and confirmed that the Indian Air Force will receive the first Tejas Mk1A fighter jet in February of this year.
Also stated that GE and HAL would shortly sign a production agreement, adding that the deal is on track. He also stated that the administration sees no obstacles to Russia delivering the S400 air defence system.
Here are five stocks associated with the defence sector that might benefit from India’s growth in the sector.
Mazagon Dock Shipbuilders Ltd
On Friday, Mazagon Dock Shipbuilders Ltd(MDSL) shares closed at Rs 2,261.35 per share, up 0.22 percent from the previous close price on the exchange. The company has a market capitalization of Rs 45,609 crore.
Mazagon Dock Shipbuilders Limited is a leading shipyard in India. It primarily manufactures for the defence sector and has built 801 vessels including 27 warships ranging from advanced destroyers to missile boats and 7 submarines.
Hindustan Aeronautics Ltd
Hindustan Aeronautics Ltd shares closed at Rs 2,998.85 per share, up 3.26 percent from the previous close price on the exchange. The company has a market
capitalization of Rs 2,00,555 crores.
Hindustan Aeronautics Ltd(HAL) is engaged in the business of manufacturing Aircraft and Helicopters and Repair and maintenance of Aircraft and Helicopters.
Bharat Electronics Ltd
On Friday’s trade, Bharat Electronics Ltd shares closed at Rs 185.95 per share, down 0.51 percent from the previous close price on the exchange. The company has a market capitalization of Rs 1,35,925 crores
Bharat Electronics Ltd manufactures and supplies electronic equipment and systems to the defence sector. The company has expertise in designing, developing, manufacturing, and supplying a wide range of strategic electronic products/systems.
Solar Industries India Ltd
On Friday’s trade, Solar Industries India Ltd shares closed at Rs 6,703.50 per share, down 0.45 percent from the previous close price on the exchange. The company has a market capitalization of Rs 60,660 crores.
Solar Industries is a global leader in the manufacture of bulk explosives, packaged explosives, and initiating systems. The company sells its products to public and private sector companies such as Coal India Limited and its subsidiaries, Steel Authority of India Limited and Hindustan Zinc Limited.
Paras Defence and Space Technologies Ltd
Paras Defence and Space Technologies shares closed at Rs 777.95 per share, down 1.34 percent from the previous close price on the exchange. The company has a market capitalization of Rs 3,034 crores.
Paras Defence and Space Technologies designs, develops, manufactures, and tests a wide range of defence electronics and space application products.
Written by Omkar Chitnis
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