India's defence sector
Set to grow at 20% CAGR
Here are some critical points that you should not miss
A thread ! Do retweet if you like
Set to grow at 20% CAGR
Here are some critical points that you should not miss
A thread ! Do retweet if you like
1/ India’s Defence Sector: A Global Powerhouse
India is transforming its defence capabilities:
- 2nd largest armed forces globally.
- 4th largest military spender.
- A sector evolving to counter threats from traditional borders to modern cyber warfare. x.com
India is transforming its defence capabilities:
- 2nd largest armed forces globally.
- 4th largest military spender.
- A sector evolving to counter threats from traditional borders to modern cyber warfare. x.com
2/ The Growth Story
- Projected CAGR: ~20% from FY24-FY29.
- Defence production to grow from ₹1.75 lakh crore (FY25) to ₹3 lakh crore (FY29).
- India’s focus: enhancing capabilities, reducing import reliance, and elevating its global stature.
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- Projected CAGR: ~20% from FY24-FY29.
- Defence production to grow from ₹1.75 lakh crore (FY25) to ₹3 lakh crore (FY29).
- India’s focus: enhancing capabilities, reducing import reliance, and elevating its global stature.
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3/ Defence Budget Highlights
- FY25 allocation: ₹6.22 lakh crore.
- Defence spending has consistently ranged from 1.9% to 2.8% of GDP.
- This steady investment showcases India’s long-term commitment to bolstering national security.
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- FY25 allocation: ₹6.22 lakh crore.
- Defence spending has consistently ranged from 1.9% to 2.8% of GDP.
- This steady investment showcases India’s long-term commitment to bolstering national security.
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4/ Key Public Sector Players
- Heavyweights like HAL, BEL, BDL, and the restructured Ordnance Factory Board dominate.
- The public sector holds ~80% of the defence market share.
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- Heavyweights like HAL, BEL, BDL, and the restructured Ordnance Factory Board dominate.
- The public sector holds ~80% of the defence market share.
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5/ Private Sector Rising
- Major contributors: Tata, L&T, Mahindra Defence, and Kalyani Group.
- Liberalized FDI norms (up to 74% via automatic route) attract global partnerships.
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- Major contributors: Tata, L&T, Mahindra Defence, and Kalyani Group.
- Liberalized FDI norms (up to 74% via automatic route) attract global partnerships.
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6/ ‘Make in India’ Success
- Policies like ‘Make in India’ and ‘Atmanirbhar Bharat’ are reducing reliance on imports.
- India aims to become a self-reliant defence powerhouse while fostering local R&D and production.
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- Policies like ‘Make in India’ and ‘Atmanirbhar Bharat’ are reducing reliance on imports.
- India aims to become a self-reliant defence powerhouse while fostering local R&D and production.
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7/ Defence Exports: A Booming Sector
- Export CAGR: ~28% over the last 6 years.
- Expected growth: ~19% CAGR from FY24-FY29.
- Products include aircraft, naval systems, missile tech, and military hardware.
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- Export CAGR: ~28% over the last 6 years.
- Expected growth: ~19% CAGR from FY24-FY29.
- Products include aircraft, naval systems, missile tech, and military hardware.
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8/ Strategic Role of Exports
- Defence exports enhance India’s global influence.
- Strengthens diplomatic ties and positions India as a reliable defence partner in emerging markets.
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- Defence exports enhance India’s global influence.
- Strengthens diplomatic ties and positions India as a reliable defence partner in emerging markets.
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9/ Technology Driving the Future
- Investments in AI, hypersonic weapons, and cyber defence are crucial.
- Focus areas include intelligence, surveillance, and counter-terrorism technologies.
- The aim: Build cutting-edge capabilities to tackle evolving threats.
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- Investments in AI, hypersonic weapons, and cyber defence are crucial.
- Focus areas include intelligence, surveillance, and counter-terrorism technologies.
- The aim: Build cutting-edge capabilities to tackle evolving threats.
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10/ Budget Goals for FY29
- Defence production target: ₹3 lakh crore.
- Growth driven by public-private partnerships, global collaboration, and policy reforms.
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- Defence production target: ₹3 lakh crore.
- Growth driven by public-private partnerships, global collaboration, and policy reforms.
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11/ Why It Matters
- India’s defence sector is not just about protecting borders.
- It’s about fostering economic growth, creating jobs, and building global alliances.
- India’s defence sector is not just about protecting borders.
- It’s about fostering economic growth, creating jobs, and building global alliances.
The next 5 years will redefine India’s position in the global defence market.
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