Indian Aerospace & Defence Market Overview
India’s aerospace and defence sector is experiencing rapid growth driven by modernisation of the armed forces, strong government support, and increasing private sector participation. The industry is emerging as one of the fastest-growing defence ecosystems in the world.
The Indian Aerospace and Defence market is expected to reach around USD 70 billion by 2030, supported by initiatives such as Make in India and Atmanirbhar Bharat, which promote indigenous manufacturing and innovation.
India’s defence ecosystem includes aircraft manufacturing, shipbuilding, spacecraft development, missile systems, advanced electronics, and next-generation defence technologies. With rising investments in research, technology, and manufacturing infrastructure, India is steadily becoming an important global hub for aerospace and defence production.
Government Support & Industry Growth
The Government of India continues to strengthen the defence sector through increased investments and policy reforms aimed at boosting domestic manufacturing and technological capability.
The Union Budget 2026–27 allocated ₹7.85 lakh crore (~USD 86 billion) for defence, marking a 15.19% increase over the FY 2025-26 Budget Estimates (BE). India’s annual defence production reached an all-time high figure of ₹1,50,590 crore in the Financial Year (FY) 2024-25, reflecting strong growth in domestic manufacturing.
India’s defence exports crossed ₹21,000 crore in 2024, with the government aiming to achieve ₹50,000 crore in exports by 2029. Major national projects such as the Advanced Medium Combat Aircraft are further strengthening India’s push toward technological self-reliance and global competitiveness.