India's defence industry is expected to register double-digit growth in the coming years, supported by a strong policy push and higher capital allocation in the Union Budget 2026-27, according to a report by Antique Stock Broking.
Defence remains one of the strongest structural beneficiaries of the capex push. Higher budgetary allocations, a robust order pipeline, and the government's continued emphasis on indigenisation under the Atmanirbhar Bharat programme are driving multi-year revenue visibility for defence manuf
India's defence capital spending is expected to remain steady at about 0.5 per cent of nominal GDP, according to a new sectoral update by B&K Research.
This marks a minor 0.9 per cent increase over last year's Budget Estimate of Rs 11.11 lakh crore, but if compared with revised estimate of 2024-25 at Rs 10.18 lakh crore, the budget estimate of 2025-26 is substantially higher.