India’s defense market getting benefits of ‘Make in India’, annual growth rate may increase to 14 percent

New Delhi| The country’s defense market could grow at a compound annual growth rate (CAGR) of 14 per cent from FY2024 to FY2030 due to the Government of India’s emphasis on Make in India. This information was given by investment firm Jefferies.
The report said that due to increasing tension at the global level and the government’s emphasis on localization of the defense sector, opportunities for Indian defense companies are increasing. Jefferies said in the report that on one hand the Indian government is emphasizing on localization of defense. On the other hand, export of defense equipment is also being promoted. This will increase order inflow in the defense sector.
India’s spending on defense could be doubled between FY 2024 and FY 2030. In such a situation, the shares of defense companies may continue to rise. Defense companies will get 90 to 100 billion dollars opportunities in the next 5 to 6 years in the Indian market. In 2022, India’s expenditure on defense was 10 percent of the US’s expenditure and 27 percent of China’s expenditure.
India is the world’s second largest importer of defense equipment. India accounts for 9 per cent of total arms imports into the world. The report further said that exports of defense equipment could grow at a CAGR of 18 per cent between FY2024 to FY2030 due to the government’s emphasis on defense exports.