Rajnath Singh on Tuesday stated on the X platform that India’s push to promote domestic defence companies has significantly boosted indigenous defence production. From Rs. 40,000 crore in 2014, domestic defence output has surged past Rs. 1.3 lakh crore and continues to rise. The government aims to cross Rs. 1.6 lakh crore in defence production in the current year, with a long-term target of Rs. 3 lakh crore by 2029, reflecting a strong commitment to self-reliance and growth in the defence sector.
Defence Sector Updates: Milestones in FY25
In FY 2024–25, the Ministry of Defence signed a record 193 contracts worth Rs. 2,09,050 crore, the highest ever in a single financial year. Notably, 177 of these contracts, valued at Rs. 1,68,922 crore, were awarded to the domestic industry, underscoring the government’s strong push towards self-reliance and indigenous defence manufacturing.
India has established two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, attracting investments worth over Rs. 8,658 crore and signing 253 MoUs with an estimated potential of Rs. 53,439 crore as of February 2025. Spanning 11 nodes across both states, these corridors are key to transforming India into a defence manufacturing hub.
Additionally, the government has issued five Positive Indigenisation Lists, covering over 5,500 items, of which 3,000 have already been indigenised. These include major defence technologies like artillery guns, assault rifles, corvettes, radars, LCHs, and transport aircraft, reflecting a strong push toward self-reliance in defence production
PSU Stock Set to Gain
1. HINDUSTAN AERONAUTICS
With an Order Book of 1,89,300 Crores and a market capitalisation of Rs. 3,41,115 Crore, being the largest Defence company listed in India, the company is India’s premier aerospace company, producing fighter jets, helicopters, and avionics. It plays a key role in defence indigenisation with a strong order book.
2. BHARAT ELECTRONICS
With an Order Book of Rs. 71,650 Crores and a market capitalisation of Rs. 2,89,759 Crore, being the second largest Defence company listed in India, the company is a PSU that develops advanced electronic products such as radars and communication systems for the Indian defence forces and will greatly benefit from the government’s push for self-reliance in defence technology.
3. MAZAGON DOCK SHIPBUILDERS
With an Order book of Rs. 32,000 Crore, and the expectation of it rising to Rs. 125,000 Crore with P-75 and P-75(I) submarine deals. The company has a Market capitalization of Rs. 1,35,055 Crore, which builds warships and submarines for the Indian Navy and is well-positioned to benefit from the government’s focus on strengthening indigenous defence manufacturing.
From its low of 5,025 on March 3, the Nifty India Defence Index surged to an all-time high of 9,195 on June 6, marking a remarkable gain of 82.98 percent in just three months. The index also delivered a strong return of 21.84 percent in the past month alone. This sharp rally was largely driven by heightened investor sentiment following Operation Sindoor, which brought renewed focus to the defence sector.
Written By Abhishek Das
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