Sector Snapshot · Aerospace & Defence

India's Defence Manufacturing Build-Out, at a Glance

A fast-read primer on where the sector stands today and where it's headed — the backdrop against which we benchmark every company's cost structure in this category.

US$ 34.7 bn
Production target by FY29
US$ 5.8 bn
Export target by FY29
US$ 12.4 bn
Production value, FY26 (Apr–Dec)
14.7%
Share of central govt. budget going to defence
74%
FDI allowed via automatic route

Production Is Scaling Fast

Domestic production has more than doubled in two years, and the government's FY29 target implies it nearly doubling again.

Defence Production (US$ billion)

FY24 → FY25 → FY29 target

14.8
FY24
17.6
FY25
34.7
FY29F

Who's Producing It — FY25

Share of total production value

DPSUs & other PSUs — 77%
Private companies — 23%

Exports Have Grown 34x in a Decade

From a near-standing start in FY14 to a Rs 30,000+ crore ambition for FY26 — private companies now drive more than 90% of that growth.

Defence Exports (Rs crore)

FY14 → FY25 actual → FY29 target

686
FY14
23,622
FY25
50,000
FY29 target

What's Pushing the Sector Forward

Three reinforcing forces — geopolitical demand, policy design, and capital commitment — are compounding at the same time.

Growth Factors
  • Ongoing territorial tensions with Pakistan and China
  • Push for technological parity with regional rivals
  • Reducing external dependence for procurement
Policy Support
  • FDI via automatic route raised to 74%
  • Defence Production & Export Promotion Policy 2020
  • Import embargo now covers 4,666 items
  • Record budgetary allocation to the sector
Investment
  • Expanding domestic production & distribution capacity
  • Rising R&D spend, incl. DRDO budget up ~8.5% YoY
  • Two dedicated Defence Industrial Corridors (UP, Tamil Nadu)

Recent Developments

A sample of the policy and industry-wide moves shaping the sector through early 2026.

Companies We Benchmark in This Sector

Listed Indian Aerospace & Defence companies in tDoBe's cost-benchmarking coverage.

Hindustan Aeronautics
Bharat Electronics
Bharat Dynamics
Garden Reach Shipbuilders
Data Patterns
Astra Microwave
Zen Technologies
Apollo Micro Systems
Sigma Advanced System
Paras Defence
Mishra Dhatu Nigam
AXISCADES Technologies
Unimech Aerospace
Cyient DLM
Centum Electronics
Avantel
Ideaforge Technology
MTAR Technologies
DCX Systems
NIBE

The Cost Benchmark — What We Actually FoundtDoBe Think Report

The market facts above are public background. What follows is tDoBe's own work: every "Other Expenses" line from these companies' own financial records, read by hand and sorted into one clear set of categories — not a keyword search, not each company's own way of reporting it.

10.8%
tDoBe Average — Other Expenses as % of net revenue
7.7×
Gap between the highest and lowest company
13
Cost categories, sorted by meaning
3.1%
Biggest single category — Miscellaneous & Others
FY24/25
Latest available financial records

Where Companies Land — Total Other Expenses

Each mark is one company's total Other Expenses as % of net revenue. No company is named here.

10.8%
0%5%10%15%20%

tDoBe Average by Cost Category

Ranked from biggest to smallest.

Miscellaneous & Others
3.1%
Repairs & Maintenance
1.0%
Travel & Conveyance
0.9%
Power & Fuel/Utilities
0.5%
Legal & Professional Fees
0.3%
Total Other Expenses
10.8%
Where the Cost Really Sits

Most of the cost in this sector sits under Miscellaneous & Others. A big share of this is money set aside for warranties, late deliveries, and payments that may not come through — normal in defence work, where contracts run for years and government payment cycles can be slow.

Why the Range Is So Wide

Some companies spend much more on Other Expenses than others, even within the same sector. Large, established manufacturers and smaller, newer companies often show very different numbers. Being in the same sector does not tell you where a company will land.

Why the Comparison Is Fair

We use each company's own standalone financial records — not group numbers, not each company's own labels. Every cost line is read by hand and placed into one common set of categories, so every company is compared the same way.

See Where Your Own Company Stands

This is the free, sector-wide view. It tells you where Aerospace & Defence stands as a whole — not where your own company stands against it, category by category, in rupees.

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$999
Your company, named, benchmarked against the sector. Every category broken out and explained. Delivered in about a week.
Consulting
$4,999
7 working days. We work straight from your own records, on the categories you want answered first.

A below-average number is a reason to call too — the benchmark keeps improving as we go.

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Compiled from public government and industry sources, February 2026 update · Figures rounded · tDoBe sector snapshot, for informational purposes · Cost Benchmark findings compiled from companies' own financial records, FY2024/25.