India's defence sector poised for significant growth
India's defense manufacturing sector is on track to grow 15-17% by FY2026, fueled by a surge in domestic orders and the push for self-reliance through Atmanirbhar Bharat.
The industry isn't just assembling parts anymore—companies are now building full systems and platforms, with profit margins holding steady at a solid 25-27%.
'Make in India' policies are paying off
By FY2025, about 75% of India's defense procurement will be local (up from just 61% in 2017), showing how "Make in India" policies are paying off.
Defense exports have also taken off, reaching ₹23,622 crore last year—a massive jump driven by partnerships with Southeast Asia and Africa.
State-owned giants like BEL and HAL are getting steady orders, while private firms are teaming up globally.
There's still work to do on funding challenges for new players, but overall, the industry is moving confidently toward self-reliance and global reach.