India’s defence sector is forecasted to experience 12-15% compound annual growth rate (CAGR), driven by increased capital expenditure, domestic manufacturing, and rising exports. Strategic reforms and robust cash flows indicate a promising trajectory for sector, as highlighted in JP Morgan’s recent report. Defence capital expenditure is projected to grow from $85 billion over last five years to $150 billion in next five years, reflecting a strong governmental push for indigenous manufacturing.
Aided by geopolitical factors and record-breaking exports of ₹21,083 crore in FY 2023-24, sector underscores India’s ambition for global prominence in defence capabilities.
| Key Highlights | Details |
| Growth Projection | 12-15% CAGR |
| Capital Expenditure Increase | $85B (past 5 years) → $150B (next 5 years) |
| FY 2023-24 Defence Exports | ₹21,083 crore (32.5% YoY growth) |
| Total Defence Production (FY23) | ₹126,887 crore (+17%) |
| Key Factors | Policy reforms, domestic manufacturing focus |
Disclaimer:
This article is for informational purposes only. All data and projections are based on available reports and may be subject to change. Always consult official sources for most accurate information.
