$41.7bn defense acquisition in 2030, says report
As the Indian economy exhibits robust expansion, defense spending is projected to rise to US$125.2 billion in 2030 from US$92.9 billion in 2026, achieving a CAGR of 7.8%, says a report being offered by ResearchAndMarkets.com.
The defense expenditure, which includes pensions, saw a modest increase to US$87.4 billion in 2025 from US$85.4 billion in 2021 with a CAGR of 0.6%.
Economic constraints and currency exchange rate fluctuations have contributed to this sluggish growth, said the report, “India Defense Market – Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030”.
Notably, in 2024, India announced a corpus fund of approximately US$12.1 billion for R&D projects and defense procurements. In this context, defense acquisition spending is expected to increase to US$41.7 billion in 2030 from US$26.2 billion in 2026, with a remarkable CAGR of 12.3%.
Major ongoing procurement programs include LCA Tejas MK-1A, Project 75 Alpha (Nuclear-Powered Attack Submarine), and Rafael M.
Companies Featured in the report are: Tata Motors Ltd; Larsen & Toubro Ltd; Tata Consultancy Services Ltd; Infosys Ltd; Mahindra & Mahindra Ltd; Wipro Ltd; Ashok Leyland Ltd; Bharat Electronics Ltd; Hindustan Aeronautics Ltd; Bharat Forge Ltd; and Mazagon Dock Shipbuilders Ltd. Fiinews.com
