India Defense Market

GlobalData’s India Defense Market - 2022 Free Report offers the reader a detailed analysis of India’s defense budget with market size forecasts covering the next five years. This report will also analyze factors that drive defense expenditure in the country

In particular, it provides an in-depth analysis of the following:

• Market size: A detailed analysis of the budget allocation along with budget forecasts over the period 2018-27. The report also provides breakdown of the defense budget in form of Acquisitions, and Others in both US Dollars ($) and Indian Rupees (INR), and also offers a breakdown of the budget.
• Market drivers: The report also provides an analysis of the forces driving the India defense. It also gives a purview of procurement decisions in the context of the threat scenario.  

Key findings include:

• Drivers of Defense expenditure include Military modernization program, Jammu and Kashmir conflict, Dispute with China and Research and Development.
• Indian defense expenditure inclusive of pensions increased from $59 billion in 2018 to $69.3 billion in 2022, reflecting a negative CAGR of 4.1% during 2018–22.
• The continuous year-on-year increase in defense budget over the year 2018–22 is attributed to the immense threat posed by its neighboring rivals China and Pakistan. Having fought armed conflicts with China in 1962 and with Pakistan in 1965, 1971, and 1999. Additionally, the Indian government is concerned by the escalating pension burden and is exploring possibilities to mitigate pension overheads. Against this backdrop, the Department of Military Affairs (DMA) has planned to extend the retirement age of all officers by 1–3 years. Under the Tour of Duty/Agneepath scheme, only 25% of the total soldiers recruited will be re-enlisted for full service.
• India’s defense expenditure is projected to grow at a CAGR of 4.3 % to value $85.3 billion inclusive of pension budget by 2027.