Market Size of India Defense Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 17.40 Billion |
| Market Size (2029) | USD 23.05 Billion |
| CAGR (2024 - 2029) | 5.79 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indian Defense Market Overview
The India Defense Market size is estimated at USD 17.40 billion in 2024, and is expected to reach USD 23.05 billion by 2029, growing at a CAGR of 5.79% during the forecast period (2024-2029).
The Indian defense market has a strong emphasis on modernization and self-reliance. The government has actively promoted indigenous production, research, and development in defense technologies. This approach aligns with the "Make in India" initiative, fostering partnerships with domestic and international defense companies to enhance capabilities and reduce import dependency. Most of India's need for military equipment arises from its border conflicts with neighboring countries. China, Pakistan, and Bangladesh have executed military actions to choke India from multiple directions. Moreover, the on-ground military dispute at the line of actual control (LAC) with China and a similar conflict with Pakistan have necessitated procuring large-caliber munition for India. The Stockholm International Peace Research Institute (SIPRI) report 2022 stated that India was the fourth largest defense spender in the world, with a defense of USD 81.4 billion.
However, one of the pivotal drivers of the Indian defense market is the consistent growth in the nation's defense budget. The Government of India has set aside USD 19.64 billion to procure new weapons and platforms for 2023-2024. The Indian government has planned to invest USD 2.79 billion in defense-related research and development to promote "Atmanirbhar Bharat" indigenous manufacturing of defense systems. Such investments are expected to drive the defense market in India during the forecast period. On the other hand, India's limited indigenous capabilities in defense technology necessitate reliance on foreign suppliers for critical components. This reliance can create vulnerabilities in the supply chain, posing potential risks to security and procurement timelines. Such factors hamper the market growth.
