Bajaj Broking cites 6.81 trillion rupees in defence budget growth for sector opportunity
A brokerage identifies India's defence spending surge from Rs 2.53 trillion to Rs 6.81 trillion as a key driver for long-term stock growth.
Bajaj Broking described India's defence sector as an attractive structural growth opportunity driven by military modernisation and increased local production. The brokerage noted the defence budget rose to Rs 6.81 trillion in FY26, up from Rs 2.53 trillion in FY14. This fiscal expansion supports domestic manufacturing under initiatives like Atmanirbhar Bharat while boosting procurement across aircraft, helicopters, naval platforms, and unmanned systems. Defence production reached a peak of Rs 1.78 trillion in FY26, representing 15.6% year-over-year growth and a doubling since FY21. Exports also hit a record high of Rs 38,424 crore. The brokerage highlighted positive indigenisation lists and liberalised foreign direct investment norms as factors strengthening the manufacturing ecosystem.
