Defence sector sees ₹15 tn opportunity on export push

Defence exports were at ₹38,424 cr in FY26, with government targeting ₹50,000 cr by FY29

- Shouvik Das

The top private and state-owned defence companies are looking at a ₹15 trillion revenue opportunity over the next five fiscal years, according to brokerage Dam Capital on 27 April, as rising government capital expenditure and an export push combine to reshape the country's arms sector into a global supplier.

The windfall is being spread across five firms, Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Mazagon Dock Shipbuilders, and Larsen & Toubro's Precision Engineering & Systems division, with exports projected to be over ₹172,000 crore for the period, show industry projections and disclosures by firms. Defence exports had hit ₹38,424 crore in FY26, as per defence ministry data. The government has set a target of ₹50,000 crore by FY29 at a compounded annual growth rate of 9%.

The exports are being driven by two key points: increasing localized production of light to heavy artillery, and the latter leading to exports of India-made defence equipment to regions such as West Asia, central and southeast Asia, and Africa as well.