Report Description

 

Forecast Period

2025-2029

Market Size (2023)

USD 18.23 Billion

CAGR (2023-2029)

4.56%

Fastest Growing Segment

Domestic

Largest Market

North

 

India defense equipment market is anticipated to grow at a great CAGR in the forecast period.

 

India Defense Equipment Market Scope

Every country's defense industry serves as a foundation for its security. It serves as the nation's defense, confronting and combating any potential danger or animosity. Businesses engaged in defense trades to improve the defense equipment market with cutting-edge technology and modern weapons and to supply strength to the foundation of the land. To meet the massive demand in the industry, the Indian defense equipment market has a huge opportunity to increase its manufacturing capabilities. India's defense equipment market has the potential to grow rapidly as many numbers of companies bringing their new technologies, in radar system, heavy artillery, and military warheads. Overall, the market for defense equipment is predicted to increase significantly in the next years because of the adding use of defense equipment in armed services and endeavors to manufacture goods in India.

India Defense Equipment Market Overview

India's defense equipment business is a sector that is crucial from the standpoint of strategic planning. The threat of terrorism as well as the geopolitical tensions between India and its neighbors, have compelled the government to substantially strengthen its naval, aerial capabilities, and perimeter security. India has one of the largest armed forces in the world with a total of over 14.4 million active members. With more than 51 lakh (5.1 million) soldiers, it has the largest volunteer military in the entire world, which results in increase in demand for defense equipment. Since a substantial portion of the defense equipment market is imported from other nations, this exponentially increases the demand for defense equipment manufacturing and provides a great opportunity for established enterprises as well as developing new players. In 2023, the Government allocated 5.94 Lakh crore (Around 72.5 USD billion) for 2023-34 financial year. The total amount of budget approved for the Indian military for the fiscal year 2022 was USD 70.6 billion, an increase of 10% above the budgetary allotment from the prior year. In addition, India has the third-largest yearly defense budget after the United States and China. Additionally, it accounts for 9.2% of all worldwide defense imports and is the second-largest buyer after Saudi Arabia.