Defence Budget Boost: 16,000 MSMEs Set to Thrive as India Ramps Up Military Spending

India's defence sector is poised for significant growth as the government announces a 9.5% increase in the defence budget for 2025-26, rising to Rs 6.81 trillion. This boost is expected to benefit around 16,000 MSME suppliers in the defence industry. Defence Secretary Rajesh Kumar Singh highlighted that 75% of the capital expenditure budget will be allocated for procurement from domestic sources, with 25% dedicated to private domestic industry. The move aims to strengthen indigenous defence production and reduce reliance on imports. With domestic production reaching Rs 1.27 trillion in 2023-24 and exports surging to Rs 21,000 crore, India's defence industrial ecosystem is expanding rapidly, driven by policy reforms and streamlined licensing procedures.

 

Source: KNN India, Business Standard, Angel One