L&T, Reliance, M&M bet on higher defence budget

These players expect orders for the manufacture of various defence equipments

Plans of companies like Larsen & Toubro, Mahindra & Mahindra and Reliance Infrastructure are riding on the government's budgetary allocation for defence. 

These players expect orders for the manufacture of single- and double-engine fighter jets, naval helicopters and submarines, and export of defence systems to pick up in the next financial year.

Excluding pensions, Rs 2,58,589 crore was allocated for defence in 2016-17, up from Rs 2,46,727 crore in 2015-16 and Rs 2,22,370 crore in 2014-15. 

India’s defence budget is 1.71 per cent of its gross domestic product and a parliamentary standing committee has recommended raising this to three per