India Defense Market Size (2024 - 2029)

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).