India's Defence Sector on a Rapid Path to Global Dominance: Report
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Synopsis
India's defence sector is on a rapid ascent to becoming a global powerhouse, with exports hitting an unprecedented Rs 21,083 crore in FY24, reflecting a 32.5% growth from the previous year. The government aims for Rs 50,000 crore in exports by FY29, driven by rising demand, especially from Europe.
Key Takeaways
- Defence exports reached a record high of Rs 21,083 crore in FY24.
- Ambitious target of Rs 50,000 crore in defence exports by FY29.
- 31 times growth in defence exports over the last decade.
- Increasing demand from European nations.
- Substantial procurement initiative worth Rs 1.5 trillion planned.
New Delhi, March 16 (NationPress) The defence sector in India is swiftly transitioning into a global leader, with the nation’s defence exports reaching a record high of Rs 21,083 crore in FY24—a remarkable 32.5% increase from last year's Rs 15,920 crore, according to a report.
The Nuvama report indicates that over the past ten years, India’s defence exports have expanded by a staggering 31 times, enhancing its foothold in the global marketplace and driving international demand.
The Indian government has set an ambitious goal of Rs 50,000 crore in defence exports by FY29, showcasing its dedication to reinforcing the sector.
For FY25, exports are expected to hit Rs 20,300 crore, further establishing India as a vital player in the global defence supply chain.
A significant factor contributing to this growth is the increasing demand from Europe. As European countries encounter manufacturing challenges and workforce shortages, India is positioning itself as a reliable supplier of defence equipment.
The initial wave of European defence orders is anticipated to commence in the first half of FY26, creating new opportunities for Indian defence manufacturers.
Domestically, the Indian government is implementing crucial measures to expedite growth in the sector, as highlighted in the report.
A substantial defence procurement initiative worth Rs 1.5 trillion is slated for completion by March 2025, aiming to address concerns regarding slow order placements in FY25.
This initiative is projected to elevate Indian defence stocks and enhance the nation’s military capabilities, the report noted.
Meanwhile, evolving global defence dynamics are presenting additional prospects for India. The United States' recent decision to reduce military aid to Ukraine has underscored NATO's significant reliance on American defence funding.
With the US contributing nearly 70% of NATO's overall defence expenditure in the last decade, European nations now face pressure to strengthen their defence systems.
This shift is expected to further stimulate demand for Indian defence products, according to Nuvama.
