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India’s Defence transformation: A multi-year growth runway

India’s defence sector is supported by a long-term focus on strengthening national security and enhancing defence preparedness. Global military expenditure has continued to rise, and India remains among the world’s largest defence spenders, reflecting the strategic importance of maintaining and modernizing its capabilities. Over the years, evolving security requirements have driven continuous investments in military readiness, creating a sustained foundation for the sector’s growth.

India’s defence ecosystem has also undergone a significant transformation, progressing from an import-dependent model toward a more self-reliant and domestically driven framework. The sector is witnessing increasing participation from private companies and startups alongside traditional defence PSUs, while the focus has shifted from technology acquisition to indigenous design, development, and manufacturing. Growing domestic procurement and expanding export capabilities further underscore the evolution of India’s defence industry into a more competitive and resilient ecosystem.