India's aerospace and defense sector is poised for significant growth between 2024 and 2029, driven by increased government spending, modernization initiatives, and a focus on indigenous production. The nation's strategic imperatives and regional security dynamics necessitate advancements across the Army, Navy, and Air Force, fostering a robust defense ecosystem.
This expansion reflects the government's commitment to enhancing military capabilities and achieving self-reliance in defense production notably earmarked for the procurement of indigenous military platforms during the 2018 - 2024 period, underscoring the emphasis on domestic manufacturing.
Private sector participation is on the rise, with companies like Tata Advanced Systems, Bharat Forge, and Larsen & Toubro Defense playing pivotal roles in meeting the armed forces' requirements. This collaborative environment is expected to bolster India's defense industrial base and reduce dependence on imports.
The Indian Army accounts for the largest share (57.47%) of the defense expenses, followed by the Air Force (19.33%), and Navy (16.69%) in the budgetary allocation for FY 2024.
The adoption of advanced technologies such as artificial intelligence, unmanned systems, cyber defense, and space-based capabilities is another critical trend, aligning India's military modernization with global standards. Strategic partnerships with international manufacturers have also gained momentum, enabling technology transfer and joint ventures to enhance domestic production capabilities. These collaborations not only broaden India's defense industrial base but also position the country as a significant player in the global defense market.
These trends collectively underscore India's commitment to achieving technological advancement and operational readiness in its aerospace and defense sector.
Market insights:
The Ministry of Defense (MoD) announced an investment worth INR 5.93 trillion for defense spending in FY 2024, up from INR 5.25 trillion in FY 2023, expanding at a Y-o-Y growth rate of 13.02%.This expansion reflects the government's commitment to enhancing military capabilities and achieving self-reliance in defense production notably earmarked for the procurement of indigenous military platforms during the 2018 - 2024 period, underscoring the emphasis on domestic manufacturing.
Private sector participation is on the rise, with companies like Tata Advanced Systems, Bharat Forge, and Larsen & Toubro Defense playing pivotal roles in meeting the armed forces' requirements. This collaborative environment is expected to bolster India's defense industrial base and reduce dependence on imports.
Segment insights:
The aerospace and defense market comprises three segments: army, navy and air force. During FY 2024, 9% of the budget allocated to the Army is utilized for its modernization.The Indian Army accounts for the largest share (57.47%) of the defense expenses, followed by the Air Force (19.33%), and Navy (16.69%) in the budgetary allocation for FY 2024.
Market trends:
India's aerospace and defense market is witnessing a significant transformation driven by several key trends. The 'Make in India' initiative continues to propel the indigenization of defense equipment, reducing dependence on imports and fostering a self-sufficient defense ecosystem. This initiative has spurred investments in local manufacturing and research, with increasing involvement from private sector players like Tata Advanced Systems and Larsen & Toubro, who are actively expanding their defense and aerospace divisions.The adoption of advanced technologies such as artificial intelligence, unmanned systems, cyber defense, and space-based capabilities is another critical trend, aligning India's military modernization with global standards. Strategic partnerships with international manufacturers have also gained momentum, enabling technology transfer and joint ventures to enhance domestic production capabilities. These collaborations not only broaden India's defense industrial base but also position the country as a significant player in the global defense market.
These trends collectively underscore India's commitment to achieving technological advancement and operational readiness in its aerospace and defense sector.
Table of Contents
Chapter 1: Executive SummaryChapter 2: Socio-Economic Indicators
Chapter 3: Introduction
Chapter 4: Market Overview
Chapter 5: Market Segmentation
Chapter 6: Market Influencers
Chapter 7: Government Initiatives
Chapter 8: Market Trends
Chapter 9: Trade Analysis
Chapter 10: Competitive Landscape
Chapter 11: Recent Developments
Chapter 12: Appendix
Companies Mentioned
- Ashok Leyland Limited
- Bharat Dynamics Limited
- Bharat Electronics Limited
- BAE Systems India Services Private Limited
- Boeing India Private Limited
- Brahmos Aerospace Private Limited
- Kalyani Strategic Systems Limited
- L&T Defense
- Tata Advanced Systems Limited
- Tata Power Strategic Engineering Division