India Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

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India Defense Market Report Overview

The India defense budget is worth $74 billion in 2023 and is expected to achieve a CAGR of more than 4% during 2024-2028. The India defense market research report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

India Defense Market Outlook, 2023-2028

India Defense Market Outlook, 2023-2028

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India Defense Market Drivers

India’s territorial dispute with China extends to the northeastern state of Arunachal-Pradesh and the northern state of Jammu and Kashmir while the territorial dispute with Pakistan is primarily over the ownership of the Indian state of Jammu and Kashmir and the marshy region of Sir Creek. This dispure acts as a driver for the defense market. Moreover, India is investing heavily in modernizing its defense forces with specific emphasis on reinforcing its Air Force and naval capabilities due to the need to maintain a robust independent defense posture to sustain its non—alignment policy.

India Military Doctrines and Defense Strategies

India increasingly faces the prospect of a two-front war and has invested considerable time in analyzing the next generation of warfare. The country has used the last decade to continuously fine-tune its operational gaps and develop a high level of integration and synergy between its armed forces, so they are capable of executing practical limited conventional war-fighting strategies against an adversary. The Integrated Defence Staff of India published a joint doctrine in 2010 and came up with a Joint Training Doctrine in 2017. The country finally released a second edition of the draft joint doctrine for the Indian armed forces in 2017, which aims to develop a high level of synchronization between the movements and operations of the army, the navy, and the air force. Both of these doctrines aim to eventually enhance the overall joint-operations capability of the Indian armed forces.

India Defense Market Segmentation by Sectors

The key sectors in the India defense market are military fixed-wing, missiles and missile defense systems, naval vessels and surface combatants, military rotorcraft, submarines, artillery, electronic warfare, military land vehicles, military radar, military UAV, tactical communications systems, EOIR, underwater warfare systems, military simulation and training, naval engines, INS GNSS, and military UGV. The top sector in the Indian defense market is military fixed-wing, followed by missiles and missile defense systems and naval vessels and surface combatants.

India Defense Market Analysis by Sectors, 2023 (%)

India Defense Market Analysis by Sectors, 2023 (%)

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India Defense Market - Competitive Landscape

Some of the leading defense companies in India are Tata Motors Ltd, Tata Consultancy Services Ltd, Larsen & Toubro Ltd, Infosys Ltd, Mahindra & Mahindra Ltd, Wipro Ltd, Ashok Leyland Ltd, Hindustan Aeronautics Ltd, Siemens Ltd, and Bharat Electronics Ltd.

India Defense Market Report Overview

Market Size (2023) $74 billion
CAGR (2024-2028) >4%
Forecast Period 2024-2028
Historical Period 2019-2023
Key Sectors Military Fixed-Wing, Missiles and Missile Defense Systems, Naval Vessels and Surface Combatants, Military Rotorcraft, Submarines, Artillery, Electronic Warfare, Military Land Vehicles, Military Radar, Military UAV, Tactical Communications Systems, EOIR, Underwater Warfare Systems, Military Simulation and Training, Naval Engines, INS GNSS, and Military UGV
Leading Companies Tata Motors Ltd, Tata Consultancy Services Ltd, Larsen & Toubro Ltd, Infosys Ltd, Mahindra & Mahindra Ltd, Wipro Ltd, Ashok Leyland Ltd, Hindustan Aeronautics Ltd, Siemens Ltd, and Bharat Electronics Ltd

Segments Covered in the Report

India Defense Sectors Outlook (Value, $ Billion, 2019-2028)

  • Military Fixed-Wing
  • Missiles and Missile Defense Systems
  • Naval Vessels and Surface Combatants
  • Military Rotorcraft
  • Submarines
  • Artillery
  • Electronic Warfare
  • Military Land Vehicles
  • Military Radar
  • Military UAV
  • Tactical Communications Systems
  • EOIR
  • Underwater Warfare Systems
  • Military Simulation and Training
  • Naval Engines
  • Military UGV


The report provides an in-depth analysis of the following –

  • India defense budget: detailed analysis of India FY2022 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Regulation: the procurement policy and process is explained. This is coupled with an analysis of the India military doctrine and strategy to provide a comprehensive overview of India military regulation.
  • Security Environment: political alliances and perceived security threats to India are examined to explain trends in spending and modernization.
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the India defense industry.

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of the India defense market over the next five years
  • Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the Indian market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
  • Identify the major threats that are driving the Indian defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion.
  • Channel resources by focusing on the ongoing programs that are being undertaken by the Indian government.
  • Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contract awarded, and financial analysis, wherever available.

Hindustan Aeronautics Ltd (HAL)
Bharat Dynamics Ltd (BDL)
Sikorsky Aircraft Corp

Table of Contents

  • 1. Executive Summary
  • 2. Defense Budget Assessment

    • 2.1. Budgeting Process
    • 2.2. Defense Market Size Historical and Forecast
    • 2.3. Drivers Of Defense Expenditure
    • 2.4. Analysis of Defense Expenditure Allocation
    • 2.5. Analysis Of Defense Budget Allocation
    • 2.6. Key Market Trends and Insights

  • 3. Military Doctrine and Security Environment

    • 3.1. Military Doctrine and Strategy
    • 3.2. Strategic Alliances and Geopolitics
    • 3.3. Political, Social, and Economic Scenario

  • 4. Market Entry Strategy and Regulations

    • 4.1. Procurement Policy and Market Regulations
    • 4.2. Market Entry Routes
    • 4.3. Key Challenges
    • 4.4. Major Deals and M&A

  • 5. Market Attractiveness and Emerging Opportunities

    • 5.1. Market Attractiveness, 2023–28
    • 5.2. Top Defense Segments by Value

  • 6. Defense Platform Acquisitions

    • 6.1. Defense Platform Acquisitions by Value
    • 6.2. Multi-role Fighter Aircraft (MRFA)
    • 6.3. Akash Mark-I & Akash-1S
    • 6.4. Indian Multi Role Helicopter (IMRH)
    • 6.5. Nuclear-Powered Attack Submarine
    • 6.6. Project-75I
    • 6.7. Tejas Mark-2
    • 6.8. Light Combat Helicopter (LCH)
    • 6.9. S5 Submarines
    • 6.10. INS Vishal (IAC-II)
    • 6.11. Mine-Countermeasure Vessels
    • 6.12. Twin Engine Deck Based Fighter (TEDBF)
    • 6.13. Tejas MK-1A

  • 7. Fleet Size
  • 8. Competitive Landscape

    • 8.1. Defense Companies Operating in India
    • 8.2. Main Defense Companies

  • 9. Appendix

    • 9.1. About This Report
    • 9.2. About Us
    • 9.3. Contact Us

Frequently asked questions

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