Advantage India
Growing
Demand
* Demand growth is likely to accelerate with rising concerns of national security.
*India’s defence exports have witnessed a remarkable surge, growing from Rs. 686 crore (US$ 81.1 million) in FY14 to Rs. 23,622 crore (US$ 2.8 billion) in FY25, marking an 34% increase.
*Annual defence production hits record high of approx. Rs. 1.27 lakh crore (US$ 15.34 billion) in FY24 up by 16.7% from last year.
Competitive
Advantage
*In February 2025, India has secured a Rs. 3,800 crore (US$ 440.3 million) deal to export BrahMos missiles to Indonesia, showcasing its advanced defense manufacturing capabilities, including the domestic production of aircraft carriers.
*India intends to deploy a constellation of 52 satellites till CY30 to enhance space-based surveillance for the Army, Navy, and Air Force, facilitating enemy tracking, border monitoring, and improved real-time operational coordination.
Government
Support
*The Union Budget for FY26 envisaged an outlay of Rs. 6,81,000 crore (US$ 78.7 billion), represents an enhancement of 9.5% over the Budget of FY25.
* SRIJAN portal launched to promote indigenisation. More than 34,000 items are available for public view and 10,000 items have been indigenized till January 2024.
Opportunities
* Government has established two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu.
* India has around 194 defence tech startups building innovative tech solutions to empower and support the country’s defence efforts.
Bharat Earth Movers Limited (BEML)
Established in 1964, BEML stated as a manufacturer of rail coaches & spare parts and mining equipment in Bengaluru. The company has partially disinvested and at present, the Government of India owns 54% of the total equity and 46% is held by Public, financial institutions, foreign institutional investors, banks and employees. BEML’s products are exported to >67 countries.
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Bharat Electronics (BEL)
Established in 1954, BEL engages in manufacturing of specialised electronic equipment requirements of the Indian Defence Services. BEL produces a wide range of equipment for areas such as defence communication, radars, naval systems, c4i systems, weapon systems, homeland security, telecom & broadcast systems, electronic warfare, tank electronics, electro-optics, professional electronic components and solar photovoltaic systems.
Read MoreHindustan Aeronautics Limited (HAL)
Established in 1940, Hindustan Aircraft Limited (HAL) operates as an aerospace and defence company. The company uses international design, under licence, to build and assemble aircraft and engines such as Prentice, Vampire and Gnat. It also designs and develops domestic aircraft. The company, in collaboration with the Inter-Continental Aircraft Company of USA, commenced its business of manufacturing Harlow Trainer, Curtiss Hawk Fighter and Vultee Bomber Aircraft.
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