Defence Stocks: Following recent tensions and a ceasefire between India and Pakistan, the defence sector has come into focus in the stock market.
Defence stocks are experiencing a rally. India has made major progress in this area, and it’s now clear that the country is quickly moving toward self-reliance in defence.
As a result, the sector is attracting strong interest from investors.
In the past month, the Nifty India Defence Index delivered an impressive 18.5% return, compared to a 7.6% gain in the Nifty 50.
This shows the defence sector is performing significantly better than the broader market.
Top 10 Defence Stocks with Highest Returns (Last 1 Month)
| Company Name | Return (%) |
|---|---|
| Bharat Dynamics | 32% |
| Mishra Dhatu Nigam | 28% |
| Astra Microwave | 24% |
| Mazagon Dock | 23% |
| Bharat Electronics | 18% |
| Garden Reach Shipbuilders | 18% |
| HAL | 12% |
| Cochin Shipyard | 12% |
| BEML | 9% |
| Zen Technologies | 6% |
These numbers highlight growing investor confidence in the defence sector, especially due to the government’s reforms under the Atmanirbhar Bharat (Self-reliant India) initiative.
How Much Has India Improved in Defence Manufacturing?
Back in 2014-15, India depended on imports for 65–70% of its defence requirements.
Today, over 65% of defence equipment is made in India. Both production and exports have hit record levels.
| Year | Defence Production | Defence Exports |
|---|---|---|
| 2014-15 | ₹46,429 crore | ₹686 crore |
| 2023-24 | ₹1.27 lakh crore | ₹23,622 crore |
Defence exports have grown over 34 times, showing India’s rising production power and presence in global markets.
India’s Defence Budget
India’s defence budget has grown 2.5 times since 2013-14, now reaching ₹6.8 lakh crore.
In the 2024–25 financial year, out of 193 defence contracts, 177 (92%) were awarded to domestic companies—proof that the government is focused on supporting local industries.
The government aims to achieve ₹3 lakh crore in defence production and ₹50,000 crore in defence exports by 2029, and is speeding up policy and structural reforms to meet these goals.
India’s Expanding Defence Industry
Defence PSUs: 16
Licensed Private Companies: 430+
MSMEs in the Sector: 16,000+
Private Sector Share: 21%
This growing industrial base is not only increasing India’s defence production but also creating jobs and boosting innovation in technology.
