India’s defence sector is set for a massive expansion by 2047, with the total defence budget expected to soar to Rs. 31.7 lakh crore. That’s nearly five times the current allocation of Rs. 6.8 lakh crore for 2024-25, according to a recent report by the Confederation of Indian Industry (CII) and global consultancy firm KPMG.
The report also highlights strong growth in defence manufacturing. India’s defence production is projected to rise significantly—from Rs. 1.6 lakh crore in 2024-25 to an estimated Rs. 8.8 lakh crore by 2047. India is also setting its sights on ramping up defence exports, which are expected to jump from around Rs. 30,000 crore today to Rs. 2.8 lakh crore by 2047.
The report also mentioned that a key focus of the upcoming defence strategy is to increase the share of capital expenditure in the total budget. This share is expected to rise from 27 percent in 2024-25 to 40 percent by 2047, indicating higher investments in infrastructure, technology, and weapon systems.
With these changes, India’s global position in defence spending is also expected to improve. Currently the world’s fourth-largest, the country could climb to third place by 2047.
Here are a few defence stocks in focus following India’s defence budget, which is set to grow nearly five times to Rs. 31.7 lakh crore by 2047:
Hindustan Aeronautics Limited
With a market cap of Rs. 3.33 lakh crores, the stock moved down by nearly 2 percent on BSE to close in the red at Rs. 4,985.8 on Friday. HAL’s order book improved to Rs. 1,89,300 crores against the previous year’s order book position of Rs. 94,127 crores as of 1st April 2024.
HAL is involved in the design, development, manufacture, repair, overhaul, upgrade, and servicing of a wide range of products, including aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures.
The company’s role is to serve as a key base for national policy to achieve self-reliance in the design, development, manufacturing, and production of the latest sophisticated aircraft fitted with the latest weapons and aeronautical equipment to meet the requirements of the Indian Armed Forces.
Between 1942 and 1945, HAL overhauled more than 1,200 different varieties of aircraft and 3,800 piston engines of aircraft, including models like the Fortress, Liberator, Mitchell Bombers, Dakota & Commando, transport aircraft Catalina, amphibious aircraft, and piston engines fitted to these aircraft.
Bharat Electronics Limited
With a market cap of Rs. 2.85 lakh crores, the stock moved down by nearly 1 percent on BSE to close in the red at Rs. 391 on Friday. As of 1st April 2025, BEL reported an order book of Rs. 71,650 crores.
For FY26, the management expects a minimum order inflow of Rs. 27,000 crore, excluding QRSAM. If the QRSAM contract is awarded during the year, it is expected to contribute an additional Rs. 30,000 crore, taking the total potential inflow to over Rs. 50,000 crore. 0BEL is among the elite group of PSUs that has been conferred the Navratna status.
Following India’s independence, the government introduced a comprehensive industrial policy that enabled the setup of infrastructure for manufacturing key products. It was from this authority that BEL was established in 1954 under the Ministry of Defence to address the specialized electronic requirements of the Indian Defence.
Over the years, BEL has evolved into a multi-product, multi-technology, multi-unit conglomerate, delivering cutting-edge systems and products that support the armed forces in securing the nation’s borders.
Its offerings span across radars & fire control systems, missile systems, communication & C4I systems, electronic warfare & avionics, naval systems & antisubmarine warfare systems, electro-optics, tank electronics & gun upgrades, and strategic components.
Bharat Dynamics Limited
With a market cap of Rs. 70,820 crores, the stock moved down by nearly 2 percent on BSE to close in the red at Rs. 1,932 on Friday. In FY25, BDL secured orders worth Rs. 6,668 crores, and the order book position (provisional & unaudited) of the company as on 1st April 2025 is around Rs. 22,700 crores. BDL was established as the manufacturing base for guided missile systems and related equipment for the Indian Armed Forces.
Since its inception, BDL has collaborated closely with DRDO & foreign Original Equipment Manufacturers (OEMs) to manufacture and supply a wide range of missiles and allied equipment to the Indian Armed Forces.
Over the years, BDL has emerged as one of the few companies globally with advanced facilities capable of manufacturing and supplying guided missiles, underwater weapons, airborne products, and allied defense equipment for the Indian Armed Forces. The company also provides Product Life Cycle Support and Refurbishment/Life Extension of vintage Missiles.
To further strengthen its capabilities, BDL has established a “Warhead” manufacturing facility at its Bhanur unit, equipped to produce all warheads required for its range of products.
Mazagon Dock Shipbuilders Limited
With a market cap of Rs. 1.37 lakh crores, the stock moved down by nearly 1 percent on BSE to close in the red at Rs. 3,398 on Friday. As of 31st March 2025, MDSL’s total order book stood at Rs. 32,260 crores.
Mazagon Dock is one of the leading shipbuilding yards in India. Since its takeover by the government in 1960, the company has experienced significant growth, emerging as India’s premier warship-building yard, manufacturing Navy warships and offshore structures for the Bombay High.
It holds the distinction of being the only Indian shipyard to have constructed both destroyers and conventional submarines for the Indian Navy and was also among the first in the nation to manufacture corvettes (Veer & Khukri Class).
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Defence stocks likely to benefit as India’s defence budget set to grow 500% appeared first on Trade Brains.