India Defense Industry Report 2025-2030 | Spending Driven by Territorial Disputes, Capability Gaps, and Modernization Needs

Discover insights into India's defense market with the 2025-2030 report on trends, budget allocation, and key acquisitions. As defense expenditure grows from $92.9B in 2026 to $125.2B by 2030, explore drivers like territorial disputes and modernization needs. Understand industry dynamics, strategies, and emerging opportunities.

Dublin, Aug. 08, 2025 (GLOBE NEWSWIRE) -- The "India Defense Market - Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2025-2030" report has been added to ResearchAndMarkets.com's offering.

India Defense Market report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Indian defense expenditure including pensions increased from $85.4 billion in 2021 to $87.4 billion in 2025, recording a CAGR of 0.6%. The sluggish growth registered over the historic period is a reflection of economic constraints which have impacted resource availability due to erosion in currency exchange rates. However, despite fiscal and global economic uncertainty, the Indian economy continues to show signs of robust growth. The country's defense expenditure is anticipated to increase from $92.9 billion in 2026 to $125.2 billion in 2030, reflecting a CAGR of 7.8%.

Historically a large part of this defense spending has been earmarked for financing revenue expenditures such as pensions, wages and salaries and due to the increasing burden of non-productive revenue spending. The Indian Ministry of Defence (MoD) has initiated several reforms to restructure military apparatus.

Non-productive cost centers such as military farms and military dairy farms have been phased out, while efforts are on to institutionalize the emergency procurement system and in 2024 India announced a corpus fund of 1 lakh core (approximately $12.1 billion) for financing R&D projects and defense procurements. Against this backdrop, the country's defense acquisition spending is anticipated to increase from $26.2 billion in 2026 to $41.7 billion in 2030, reflecting a CAGR of 12.3%.

Key Highlights

• Territorial disputes with China and Pakistan, erosion in Qulitative Military Edge (QME), capability gaps with respect to rivals China and Pakistan, modernization of equipment are key factors driving defense expenditure
• Major ongoing procurement program include procurement of LCA Tejas MK-1A, Project 75 Alpha (Nuclear-Powered Attack Submarine), and Rafael M

Scope

• Defense Budget Assessment: This chapter covers the defense budgeting process, market size forecasts, drivers of expenditure, and allocation analysis. It also examines key market trends and insights.
• Military Doctrine and Security Environment: Detailed analysis of military doctrine, strategic alliances, geopolitical dynamics, and the political, social, and economic factors influencing the security environment.
• Market Entry Strategy and Regulations: This section elaborates on essential aspects of procurement policy and market regulations, market entry routes, key defense procurement bodies and major deals.
• Market attractiveness and emerging opportunities: It evaluates the attractiveness of various defense sectors, indicating cumulative market value, and highlights the top sectors and defense segments by value in the country.
• Defense Platforms Import and Export Dynamics: Provides an understanding of the defense platform imports and exports of the country from 2016 to 2024. Both imports and exports of the country are provided in terms of value ($M) and volume (units), categorized by country and sector.
• Defense Platform Acquisitions: It offers an overview of defense platform acquisitions by value. It lists current defense procurement schedules for the major ongoing and planned military platforms that have been formulated in the country and elaborates on the reasons leading to the procurement of the same.
• Fleet Size: Outlines the current fleet sizes of the Army, Air Force, and Navy, detailing the year of acquisition, units in service, and the prime contractor for the equipment.
• Competitive Landscape: Profiles the main defense companies operating in the country, offering insights into their business overviews, latest contracts, and financial results.

Key Topics Covered:

Executive Summary

• Defense Budget Assessment
• Budgeting Process

Defense Market Size Historic And Forecast

• Drivers Of Defense Expenditure
• Analysis of Defense Expenditure Allocation
• Analysis Of Defense Budget Allocation

Key Market Trends and Insights

• Military Doctrine And Security Environment
• Military Doctrine And Strategy

Strategic Alliances and Geopolitics

• Political, Social and Economic Scenario
• Market Entry Strategy And Regulations
• Defense Procurement Bodies

Funding Opportunities

• Trade Associations and Defense Clusters
• Types of Contracts and Opportunities
• Types of European Procurement Procedure
• Procurement Policy and Market Regulations

Market Entry Routes

• Key Challenges
• Major Deals and M&A
• Market Attractiveness And Emerging Opportunities
• Market Attractiveness By Defense Sector

Top Sectors in the India Defense Market

• Top Defense Segments By Value
• Defense Platforms Import and Export Dynamics
• Defense Platforms Import Dynamics
• Defense Platforms Export Dynamics
• Defense Platform Acquisitions
• Defense Platform Acquisitions By Value
• Multi-role Fighter Aircraft (MRFA)
• Tejas Mark 1A
• Advanced Medium Combat Aircraft
• Project 77 (Project 75 Alpha)
• Rafale-M
• Project 18-class Destroyer
• S5 Submarines
• Project 17B Class Frigate
• Tejas Mark 2
• Project-75I
• Twin Engine Deck Based Fighter (TEDBF)
• Project-76

Fleet Size

• Army
• Air Force
• Navy

Competitive Landscape

• Defense Companies Operating In India
• Main Defense Companies

Companies Featured

• 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
• Mazagon Dock Shipbuilders Ltd

For more information about this report visit https://www.researchandmarkets.com/r/q3yg9j

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