ARMED FOR GROWTH

The defence sector is poised for a phenomenal rise, evident in the near 21% rise in the Nifty India Defence index since April 22, the day of the terror attack in Pahalgam

- BY RAHUL OBEROI

INDIA'S DEFENCE SECTOR has been witnessing strong growth, largely fuelled by the government's sustained push for self-reliance in manufacturing, record-breaking order books, and strategic policy initiatives. Recent events, such as the Pahalgam terror attack on April 22, 2025, and the subsequent 'Operation Sindoor' by the Indian Armed Forces, showcased the power of Indigenous weapons—from drones to missiles and radars—to the world.

Market watchers believe that the country's defence sector is strategically positioned for long-term growth. Following the recent cross-border tensions, defence-related stocks witnessed heavy buying in the domestic stock market. This is evident from the nearly 21% rise in the Nifty India Defence index since April 22, the day of the terror attack in Pahalgam. The market valuation of the Nifty India Defence index surged by ₹1.83 lakh crore to ₹11.06 lakh crore on May 19, 2025 from ₹9.23 lakh crore on April 22, 2025. Sharing his views on the sector, Anil R., Senior Research Analyst of financial services company Geojit Investments says, “India’s defence sector is poised for strong growth, with some of the large PSUs like Hindustan Aeronautics, Bharat Electronics, and Bharat Dynamics placed well due to their large order books and strategic roles in defence electronics, missile systems and aircraft manufacturing.” Shares of Hindustan Aeronautics, Bharat Electronics, and Bharat Dynamics advanced 17%, 20% and 29%, respectively, during April 22-May 19. “Defence electronics is gaining prominence amid the shift toward non-conventional and hybrid warfare. Private players and tech start-ups are also emerging as key contributors. These segments are well-positioned to benefit from technological advancements and policy support,” says Anil R.

REFORMS, POLICY PUSH