CA Devang Maheshwari
@equialpha
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
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.
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. ---
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. ---
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. ---
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. ---
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. ---
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. ---
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. ---
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. ---
10/ Budget Goals for FY29 - Defence production target: ₹3 lakh crore. - Growth driven by public-private partnerships, global collaboration, and policy reforms. ---
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.
The next 5 years will redefine India’s position in the global defence market. Follow @equialpha for more such insights and Join our free telegram channel for stock updates https://t.me/EquiAlpha_stocks