
10/09/2024
India's defence exports are set to grow at an 18% compound annual growth rate (CAGR) from FY24 to FY30, thanks to the 'Make in India' initiative and a strong focus on local manufacturing. According to a report by global investment firm Jefferies, factors like geopolitical tensions and the government's push for indigenization are driving opportunities for Indian defence companies. The report also highlights the government's efforts to strengthen bilateral ties to boost global exports.
The Defence Acquisition Council recently approved 10 capital acquisition proposals worth ₹1,44,716 crore, signaling a major push for indigenous defence manufacturing. Almost 99% of these acquisitions will be sourced locally, underlining India's commitment to self-reliance in defence. These initiatives are expected to lead to a significant increase in defence equipment orders, with companies poised to tap into a market opportunity valued at $90-100 billion over the next 5-6 years.
India, the world's second-largest importer of defence equipment, is rapidly enhancing its export capabilities. Defence exports have surged 14 times, reaching $2.6 billion between FY2017 and FY2024. The country’s export portfolio now includes advanced systems like missiles, radars, naval systems, helicopters, and surveillance equipment, positioning India as a key player in the global defence landscape.