The rapidly evolving geopolitical landscape has resulted in the increased demand for military equipment both globally and within India, which is driven by regional conflicts, and the proposed modernisation efforts of the armed forces worldwide. Total military expenditure accounted for 2.3 per cent1 of the world GDP in 2023. The five biggest spenders in 2023 were the United States, China, Russia, India and Saudi Arabia, which together accounted for 61 per cent1 of world military spending. The five largest exporters of arms during 2019-23 were USA, France, Russia, China and Germany, accounted for 75 per cent1 of all arms exports. During the same period the top five arms importers were India, Saudi Arabia, Qatar, Ukraine and Pakistan, accounting to received 35 per cent1 of total imports.
With increased government spending and focus on indigenisation, India’s defence budget has been on a steady rise for the past 10 years. This increase in defence expenditure is directly linked to Government initiatives with focus on modernising India’s defence forces and self-reliance. In FY23-24, INR 6,23,888 crores2 (USD 75.1 billion) was allocated for the total defence budget with a revised estimate of INR 6,21,541 crores2
(USD 74.8 billion) for FY24-25. Over the period of FY17-22, the contribution of private players has increased by about 41 per cent owing to government initiatives to increase the private sector contribution in A&D manufacturing. For FY24-25, the defence production has reached INR 25,144 crores3 (USD 2.98 billion) against the set target of INR 1,60,000 crore3 (USD 19.02 billion).
