India’s defence sector is witnessing an unprecedented boom as nine state-owned defence companies have accumulated orders worth over Rs 5 lakh crore for the first time, leaving them unable to accept fresh contracts. The central government’s decision to spend 75 percent of the total defence procurement budget domestically has driven annual purchases of nearly Rs 2 lakh crore, while defence exports continue to grow rapidly.
HAL Leads With Rs 2.6 Lakh Crore Order Book
Hindustan Aeronautics Limited (HAL) holds the largest order book at Rs 2,60,960 crore, covering aircraft manufacturing for the Air Force and Navy along with helicopter production and maintenance. HAL would need 8 to 9 years to complete these orders, meaning any new contract would only begin after a decade unless the company sets up fresh manufacturing facilities.
BEL and BEML Secure Major Defence Contracts
Bharat Electronics Limited (BEL) has secured orders worth Rs 73,400 crore for radars, missile components, and defence communication systems for all three armed forces. Bharat Earth Movers Limited (BEML) has received Rs 16,395 crore in orders for manufacturing various categories of military vehicles.
BDL and MIDHANI Drive Missile and Alloy Production
Bharat Dynamics Limited (BDL) holds orders worth Rs 25,962 crore for guided missiles, underwater systems, and military equipment. Mishra Dhatu Nigam Limited (MIDHANI) has Rs 2,440 crore in orders for specialised steel and alloys required for naval vessels and other defence equipment.
Defence Exports Surge to 100 Countries
India’s defence exports have grown to Rs 38,424 crore in 2025-26, with approximately 100 countries now purchasing defence equipment from India. The modernisation of the three armed forces along with paramilitary and police forces has further boosted domestic demand for defence equipment. The rise in indigenous defence production is expected to generate substantial direct and indirect employment while also saving foreign exchange through reduced imports.
