Exports, a major growth area for Indian defence companies: Goldman Sachs

New Delhi [India], October 6 : Exports have emerged as a key growth driver for India's domestic defence sector, with the government setting ambitious targets to significantly expand the country's global footprint in the coming years, according to a Goldman Sachs report on the Indian Aerospace and Defence industry.

India's defence exports have surged from Rs 6.8 billion (USD 80 million) in FY14 to Rs 236 billion (USD 2.77 billion) in FY25. The Ministry of Defence aims to raise this to Rs 350 billion (USD 4.1 billion) by FY27 and further to Rs 500 billion (USD 5.8 billion) by FY29.

The report noted that over 100 countries are already sourcing Indian-built systems and components, from small arms and munitions to advanced sub-systems. Private firms are contributing 65 per cent of total exports, despite holding only a 35 per cent share in the overall production value.

To capture a larger share of the estimated USD 100 billion global arms market, Indian defence firms will have to move beyond components and deliver complete systems and platforms. Interest has already been shown by friendly nations in major platforms such as the BrahMos missile, Pinaka artillery systems, and Akash air defence systems.

"We think Indian defence firms will need to move beyond components and sub-systems to complete solutions," noted Goldman Sachs.

The report identified key export-ready products, including the Tejas Mk-1A fighter jet with indigenous avionics, the Prachand light combat helicopter, naval frigates and corvettes, and missile defence systems such as Akash-NG and QRSAM. Additionally, Indian firms are gaining ground in high-value materials, such as titanium and superalloys, used in aerospace manufacturing.

The report also noted that the European Union's Readiness 2030 plan, aimed at strengthening defence capacity across Europe, could open new avenues for Indian manufacturers in areas such as ammunition, drones, radar systems, and electronic warfare equipment.

Indian defence exports are expected to remain on an upward trajectory, driven by rising global demand, government policy support under the Atmanirbhar Bharat initiative, and increasing participation of private firms in the defence manufacturing ecosystem.

India is the world's fifth-largest defence spender, but is the second-largest importer of defence equipment. The country now designs and builds its own fighters, satellites and radars, and has greatly reduced its dependence on foreign suppliers.

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