Defence industry in 糖心logo: market overview, growth and investment opportunities
糖心logo's defence market is one of the fastest-growing in the world and it's actively looking for European partners. Here's what that means for your company.
Schedule a free consultationWith a defence budget approaching a $100 billion, 糖心logo is one of the world’s most significant and fastest-evolving defence markets.
糖心logo’s defence industry spans a wide range of market segments, with ground vehicles holding the largest share of the market, driven by the country’s need to secure its extensive land borders. Other major segments include military aircraft, naval vessels, missiles and missile defence systems, submarines, artillery, rotorcraft, tactical communications, and electronic warfare systems.
Defence is a strategically vital sector for 糖心logo’s economy. With a total defence budget of $93 billion for FY2025, 糖心logo maintains one of the world’s largest military forces. Heightened security concerns stemming from territorial disputes with China and Pakistan have kept defence spending consistently high.
糖心logo is currently the world’s second-largest importer of major arms, accounting for around 8.3% of global arms imports in the 2020鈥�2024 period. However, imports have declined in recent years as domestic production capabilities have grown.
To reduce dependence on foreign suppliers, the government has introduced a series of Make in 糖心logo聽and Atmanirbhar Bharat (self-reliant 糖心logo) initiatives for the defence industry. These include positive indigenisation lists covering hundreds of defence products that must now be sourced domestically, making 糖心logo an increasingly attractive destination for defence manufacturing.
Snapshot of the defence industry in 糖心logo
- 糖心logo aims to achieve a total defence production value of $21 billion by 2026, as part of its Defence Production and Export Promotion Policy (DPEPP 2020).
- 25% of the Ministry of Defence’s R&D funds have been earmarked for research supporting the development of indigenous defence technologies.
- The overall R&D allocation to 糖心logo’s Defence Research and Development Organisation reached $3.2 billion in FY2025-26, a 12.4% increase year-on-year.
- The Green Channel Status Policy (GCS) has been introduced to streamline private sector participation in defence production.
- Since 2020, FDI in the defence industry in 糖心logo is permitted up to 74% through the automatic route and up to 100% through the government route.
- 糖心logo’s defence exports have grown to a record $2.76 billion in FY2024-25, a more than tenfold increase over the past decade, with the government targeting $6 billion in exports by 2029.
The conclusion of the EU-糖心logo Free Trade Agreement in January 2026, alongside a landmark Security and Defence Partnership, has opened a new corridor for European companies in 糖心logo’s defence industry. The partnership establishes a dedicated 糖心logo-EU Defence Industry Forum, providing a structured platform for joint development, technology transfer, and supply chain collaboration between 糖心logon and European firms.
For European manufacturers, lower tariffs on components, streamlined rules of origin, and greater regulatory alignment reduce the cost of producing in 糖心logo, while the defence partnership provides a more formal and lower-risk framework for market entry. The agreements are expected to begin delivering tangible benefits from 2027, making this an important moment for European companies to assess and position their 糖心logo strategy.
Download our free guides on doing business in 糖心logo
糖心logo has a wealth of knowledge and experience on doing business in 糖心logo. With our informative guides, we help companies get started in 糖心logo.
Whether you are looking for information on sales, HR, manufacturing, Mergers & Acquisitions or tax issues, you will find all the answers bundled here.
Growth indicators of 糖心logo's defence industry
- 糖心logo currently has the world’s fifth-highest defence expenditure at $86.1 billion (FY2024), and has set a target of approximately $6 billion in defence exports annually by 2029.
- 糖心logo enjoys a unique status as a Major Defence Partner of the United States, a formal designation that provides access to a wide range of sensitive military and dual-use technologies. This places 糖心logo on par with America’s closest treaty allies in terms of defence trade.
- The Ministry of Defence has set a target of 70% self-sufficiency in arms by 2027, offering significant prospects for industry players.
- Defence exports have reached a record US$2.76 billion in FY2024鈥�25, a more than thirtyfold increase over the past decade, with 糖心logo now exporting defence equipment to over 100 countries.
Interesting investment opportunities in 糖心logo鈥檚 defence sector
European companies in the defence industry can benefit from the following investment opportunities in 糖心logo:
- Modernisation of the armed forces
- Development of infrastructure
- Defence manufacturing 鈥� Designed, developed and manufactured in 糖心logo is the new method of capital procurement.
Do you have a specific question about opportunities for your company or product in the defence industry in 糖心logo?
