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Market Insights: India & Global Defense Trends (2025)​

Our dedicated aerospace and defense market research team continuously monitors industry trends, geopolitical dynamics, supply chain fluctuations, technological advancements, and security challenges empowering stakeholders to make informed, strategic, and future-ready decisions.

India Defense Outlook 2025

India’s domestic defense production hits ₹1,46,000 crore ($17.09 billion) in 2025, reflecting robust growth under the Make in India initiative

Defense exports have soared to ₹24,000 crore ($2.8 billion) in 2025. A dramatic 34-fold increase in a decade. Private sector and DPSUs contributed Rs15,233 crore and Rs8,389 crore, respectively

  • FY 2025-26 allocation is ₹6.81 lakh crore (about $78.6 billion), marking a 9.5% increase over last year’s budget. 26.4% is earmarked for new acquisitions, and over 75% of the modernization budget is set aside for domestic procurement, boosting self-reliance.

  • 26% of the budget is dedicated to capital outlay for new equipment; strong emphasis on integrating AI, cybersecurity, and surveillance.

India is pushing for leadership as a global defense manufacturing hub, exporting to around 80 countries and aiming for ₹50,000 crore in exports by 2029.

Global Defense outlook 2025

  • Increased deployment of artificial intelligence, cybersecurity, surveillance, and autonomous systems is reshaping modernization and operational readiness. Notable is government support for AI-enabled and autonomous combat technologies.

India’s defense exports hit a record ₹23,622 crore ($2.8 billion) in FY 2024–25, exporting to 100+ countries, and aims to reach ₹50,000 crore by 2029. Major export items include LCA Tejas, helicopters, and missile systems.

The domestic aerospace and defense sector posted over 70% growth in deals in the past two years and drew more diversified investor participation, underlining its attractiveness and strategic importance

India has expanded defense partnerships and joint ventures with global leaders like the US, France, Israel, and Russia for technology transfers, joint development, and exercises

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