India’s Defense Sector Gains Global Momentum

The defense technology market of India is on the rise with the push in orders and exports due to the global military expenditure and an internal policy of self-sufficiency.

The defense industry in India is becoming a significant beneficiary of a worldwide military expenditure outburst, which is being precipitated by the geopolitical tensions and the fast-tracked modernization efforts. It is a change that is being managed to put defense technology at the forefront of long-term growth plans by policymakers and investors.

By 2024, military spending reached a record high of $2.72 trillion, marking a sharp increase in expenditure since the Cold War. Due to the preference of every country in favor of security and superior levels, the demand for the next generation of defense technology platforms is increasing rapidly.

India is the fifth-largest defense cause in the world now and is capitalizing on this environment by making a loud cry for self-reliance. The policy reforms focus on minimizing involvement in imports and boosting local production, and the country is becoming a competitive center in defense technology.

The effect is reflected in the growth of order books and strong exports. Purchases in the public defense sector and companies are transforming multi-year contracts into continuous revenues. There has been a 39% CAGR in the height of the defense exports in India between FY17 and FY25, indicating how well the process of indigenization has been effective.

Firms are also shifting to higher value chains into systems integration, electronics, and high-margin R&D-driven segments and enhancing their competitive position globally. Having sovereign-backed demand and transparent visibility on orders, defense technology is a rare commodity in terms of stability and massive growth prospects in the uncertain global landscape.