Stocks of the Indian defense sector, which had recently corrected from their heights, have been re -growing since last week, most of the stress with Pakistan is due to recent flare. The successful performance of India’s indigenously developed systems against adversary last week also supported Defense Stock Basket.
The struggle with Pakistan also noted the fact that it is important to achieve self -sufficiency in defense building.
The Nifty India Defense Index has climbed over 30 per cent in the last three months, reflecting investors in strategic importance of India’s domestic defense sector and in commercial development.
The Nifty India Defense Index has listed companies that receive a significant proportion of their revenue from the sale of rescue-related products and services.
According to the Nifty India Defense Factory of April 30, 2025, the top five components by the index weightage include Hindustan Aeronautics, India Electronics, Solar Industries India, Mazgan Dock Shipbuilders and Bharat Dynamics. The index includes 18 defense stocks.
The Government of India has taken several policy initiatives in the last few years and introduced reforms to encourage indigenous design, development and construction of defense equipment, promoting self -sufficiency in defense construction.
With the emphasis of the government on Make in India Initiative, defense production has increased to historical height. This growth in defense construction has given adequate returns to investors in major defense construction PSUs over the years.
As part of its self -reliance and Make in India Plan, the government launched the production incentive (PLI) schemes in various fields, which launched plans in various fields to make Indian manufacturers globally competitive, attract investment, integrate exports, integrate India in global supply chain and reduce dependence on imports.
The government is also making heavy investments in defense and aerospace construction, in which several defense hubs have been set up. In particular, many global companies have either shared or shared important defense and aerospace knowledge with India.
India’s defense exports have reached a record high of Rs 23,622 crore (about 2.76 billion USD) in the financial year 2024-25. According to the data available by the Ministry of Defense, there has been an increase of Rs 2,539 crore or Rs 12.04 per cent on defense export data of 2023-24, which was Rs 21,083 crore.
Defense Public Sector Undertaking (DPSUS) saw a significant increase of 42.85 percent in its exports in FY 2024-25, showing the growing acceptance of Indian products in the global market and the ability to become part of the Indian defense industry’s global supply chain.
The private sector and defense PSUs have contributed Rs 15,233 crore and Rs 8,389 crore to the defense exports of 2024-25 respectively, while the same figures for 2023-24 were Rs 15,209 crore and Rs 5,874 crore respectively.
These figures prove that India has developed with a large-scale import-dependent military force, which is focused on self-reliance and indigenous production. In a major boost for defense exports for defense exports, a wide range of objects, including ammunition, weapons, sub-system/systems, and parts and components, according to the Ministry of Defense Data, was exported to about 80 countries in about 80 countries.
Following are their cumulative growth in defense companies and shares listed in the last five years:
According to National Stock Exchange (NSE) data, defense manufacturing companies have shot in the range of 1,100–1,650 percent in the last five years in the last five years. Similarly, shares of other listed defense companies also shot, although with a different degree. (AI)
