Govt policy tailwinds to drive 15% CAGR in India's defence production

The government's ongoing policy push for import substitution and exports is a big propellent, driving the 15 per cent CAGR in India's defence production turnover

Amidst rising defence spending by East European and West Asian countries, a new report from Axis Capital Research focuses on India’s defence production and indigenisation programme. It predicts that the compounded annual growth rate (CAGR) of India’s defence outlay is likely to grow at 12 per cent to $147 billion over FY2025-29E.

The Axis report draws on the data from India’s annual Budget, the Ministry of Defence (MoD) media releases, the World Bank and international bodies such as the Stockholm International Peace Research Institute (SIPRI).

The government’s ongoing policy push for import substitution and exports is a big propellent, driving