India’s defense sector has seen a promising upswing, with the nation’s top arms manufacturers recording an impressive 8.2 percent increase in revenues for 2024, amounting to a combined total of $7.5 billion. This growth was highlighted in the latest annual report from the Stockholm International Peace Research Institute (SIPRI), which tracks global arms production and expenditures.
Among the Top 100 global arms producers, only three Indian companies made the cut: Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Mazagon Dock Shipbuilders Limited (MDSL). These firms play a crucial role in contributing to both national and international defense efforts.
Hindustan Aeronautics Limited continues to uphold its position as India’s largest defense manufacturer, achieving arms revenues of $3.8 billion. Despite this success, HAL experienced a slight decline in its global ranking, dropping from 42nd to 44th, primarily due to a marginal 0.3 percent decrease in defense earnings. Notably, while HAL is also involved in civilian aviation and space projects, a staggering 95 percent of its total revenue of $4 billion was attributed to arms production.
In contrast, Bharat Electronics Limited showcased the most robust growth among Indian defense firms, with arms revenues surging by 23.6 percent to reach $3.8 billion. This notable increase was largely fueled by rising domestic demand for advanced radars and electronic warfare systems. As a result of this growth, BEL climbed ten places in the global rankings, moving from 68th to 58th position. Defense manufacturing constituted a significant 89.9 percent of BEL’s total revenue of $2.75 billion.
Mazagon Dock Shipbuilders Limited also demonstrated strong performance, with a 9.38 percent rise in defense revenue, totaling $1.12 billion. MDSL, which specializes in the construction of submarines and warships, retained its global ranking at 91, with 89.8 percent of its total revenue of $1.37 billion coming from arms production.
On a global scale, SIPRI’s report indicates that arms revenues among the Top 100 producers reached an astonishing $679 billion in 2024, representing a 5.9 percent increase compared to previous years. This growth was primarily driven by companies in Europe and the United States. Notably, Lockheed Martin led the global market with arms sales totaling $62 billion, followed by other large American corporations. BAE Systems from the UK secured the fourth position, while Russia’s Rostec and China’s AVIC ranked seventh and eighth, respectively.
In terms of military expenditure, SIPRI has observed that India’s defense budget for 2024 stands at $86.23 billion. This figure significantly surpasses that of its regional neighbor, Pakistan, which allocated $10.165 billion for defense, but remains less than China’s extensive military spending of $313.67 billion.
The growing revenues and strategic advancements within India’s defense industry reflect a broader commitment to strengthening national security and enhancing capabilities in a competitive global landscape.
