India’s defense industry is poised for significant growth, underpinned by government-approved projects worth Rs. 7 trillion (approximately $83 billion). This robust order book ensures steady workflow across various sectors, including missiles, aircraft, and naval vessels, while the anticipated increase in defense spending in the upcoming budget further enhances market opportunities. The trend of indigenization is notable, with domestic procurement rising from 54% pre-COVID to 75% in the FY26 budget, bolstering profit margins and reducing reliance on imports. Additionally, heightened export demand for Indian defense systems, such as BrahMos and Akash missiles, positions Indian manufacturers favorably in the international arena, particularly as European countries ramp up their defense budgets. The establishment of a Rs. 40,000 crore fund for expedited emergency procurement facilitates quicker order placements, strengthening near-term production capabilities. As Indian defense entities expand their capacities and align investments with a multi-year order visibility, the sector is transitioning into a production-led growth cycle, with projected earnings growth of approximately 37% for companies like Bharat Dynamics by FY28, marking a transformative phase for India’s defense landscape.