India Defense Market Size (2024 - 2029)

The Indian defense market is poised for growth, driven by a focus on modernization and self-reliance, supported by government initiatives like "Make in India." The market's expansion is fueled by increased defense budgets and investments in indigenous manufacturing and research and development. Despite these efforts, India's reliance on foreign suppliers for critical components poses challenges, potentially impacting supply chain security and procurement timelines. These dynamics shape the market's trajectory, reflecting the country's strategic priorities and regional security concerns.

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Market Size of India Defense Industry

India Defense Market Summary
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

India Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

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.

Indian Defense Industry Segmentation

The Indian defense market covers all aspects of the military vehicle, armament, other equipment procurements, and upgrade and modernization plans. The report also provides insights into the budget allocation and spending of the country in the past, present, and forecast periods.

The Indian defense market is segmented by armed forces and type. Armed forces segment the market into the army, navy, and air force. By type, the market is classified into fixed-wing aircraft, rotorcraft, ground vehicles, naval vessels, C4ISR, weapons and ammunition, protection and training equipment, and unmanned systems. The report also covers the market sizes and forecasts for the Indian defense market. The market size is provided for each segment in terms of value (USD).

Armed Forces
Army
Navy
Air Force
Type
Fixed-wing Aircraft
Rotorcraft
Ground Vehicles
Naval Vessels
C4ISR
Weapons and Ammunition
Protection and Training Equipment
Unmanned Systems
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India Defense Market Size Summary

The Indian defense market is poised for significant growth, driven by a strong focus on modernization and self-reliance. The government's "Make in India" initiative has been pivotal in promoting indigenous production and research in defense technologies, fostering collaborations with both domestic and international defense companies. This strategy aims to enhance India's defense capabilities and reduce dependency on imports, particularly in response to border conflicts with neighboring countries like China and Pakistan. The increasing defense budget underscores the government's commitment to procuring new weapons and platforms, alongside substantial investments in defense-related research and development. However, challenges remain due to limited indigenous capabilities, necessitating reliance on foreign suppliers for critical components, which could pose risks to supply chain security and procurement timelines.

The Indian defense market is characterized by a semi-consolidated structure, with major players such as Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and the Defense Research and Development Organisation (DRDO) holding significant market shares. The market is further bolstered by strategic partnerships and technology transfer agreements with international firms, aimed at enhancing local manufacturing capabilities. Notable collaborations include those between Indian companies and foreign counterparts for military vehicles and aircraft production. The Indian Navy and Air Force are also expanding their fleets and capabilities, with ongoing projects like the AMCA aircraft and various naval vessels under the Make in India initiative. These developments, coupled with the government's focus on indigenous technology and manufacturing, are expected to drive the growth of the Indian defense market in the coming years.

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India Defense Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Armed Forces

      1. 2.1.1 Army

      2. 2.1.2 Navy

      3. 2.1.3 Air Force

    2. 2.2 Type

      1. 2.2.1 Fixed-wing Aircraft

      2. 2.2.2 Rotorcraft

      3. 2.2.3 Ground Vehicles

      4. 2.2.4 Naval Vessels

      5. 2.2.5 C4ISR

      6. 2.2.6 Weapons and Ammunition

      7. 2.2.7 Protection and Training Equipment

      8. 2.2.8 Unmanned Systems

India Defense Market Size FAQs

The India Defense Market size is expected to reach USD 17.40 billion in 2024 and grow at a CAGR of 5.79% to reach USD 23.05 billion by 2029.

In 2024, the India Defense Market size is expected to reach USD 17.40 billion.

Indian Defense Market Report Snapshots

Indian Defense Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)