What’s Fuelling India’s Military Stock Surge Amid Global Turmoil
© Photo : Indian Ministry of Defence
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India's defence stocks have remained in the fast lane in 2026 despite the downturn in the market over a range of geopolitical challenges, headlined by the closure of the Strait of Hormuz.
India's defence sector is currently benefiting from a long-term structural transformation rather than a short-term market rally. The government's continued emphasis on defence modernisation, indigenous manufacturing, and self-reliance under the Atmanirbhar Bharat initiative has created strong growth opportunities for domestic companies, an expert has said.
At the same time, global geopolitical tensions have increased the importance of defence preparedness across the world, leading to higher military spending and new export opportunities for Indian manufacturers. Companies are securing larger order books, improving execution capabilities, and expanding into international markets, stated Harpreet Sidhu, an aerospace and defence analyst at the London-headquartered GlobalData, a military data analysis company.
At the same time, global geopolitical tensions have increased the importance of defence preparedness across the world, leading to higher military spending and new export opportunities for Indian manufacturers. Companies are securing larger order books, improving execution capabilities, and expanding into international markets, stated Harpreet Sidhu, an aerospace and defence analyst at the London-headquartered GlobalData, a military data analysis company.
"The inclusion of companies such as Solar Industries India, MTAR Technologies, Astra Microwave Products, Aequs, Skyroot Aerospace, and Apollo Micro Systems in the Hurun India 500 reflects growing investor confidence in India’s evolving defence ecosystem," Sidhu told Sputnik India. "Investors increasingly view the sector as a strategic long-term growth story backed by strong government support, rising exports, and increasing private-sector participation."
His remarks came after India's defence stocks registered an average growth of 74% in the first six months of 2026. Additionally, the nation's giant's defence production reached a record $19 billion in the financial year 2025-26.
The confidence in India's military industrial complex is also being reflected in rising interest in its defence items: for instance, Vietnam and Indonesia are on the verge of signing deals to acquire the BrahMos missile, and the UAE has initiated talks with the Government of India to procure the widely acclaimed Indo-Russian projectile.
That's why Sidhu believes that crossing the $31 billion mark (defence production) within the next three years is both ambitious and achievable. India's defence production has already more than doubled over the last five years, demonstrating the sector's strong growth momentum.
The confidence in India's military industrial complex is also being reflected in rising interest in its defence items: for instance, Vietnam and Indonesia are on the verge of signing deals to acquire the BrahMos missile, and the UAE has initiated talks with the Government of India to procure the widely acclaimed Indo-Russian projectile.
That's why Sidhu believes that crossing the $31 billion mark (defence production) within the next three years is both ambitious and achievable. India's defence production has already more than doubled over the last five years, demonstrating the sector's strong growth momentum.
"Several factors support this outlook. Major military modernisation programmes are moving into production stages, defence exports continue to grow rapidly, and private companies and startups are playing an increasingly important role in the manufacturing ecosystem," he underlined.
Of course, achieving this milestone will require sustained policy support, timely project execution, and continued investment in indigenous capabilities. Defence exports will also be a key growth driver, helping Indian manufacturers expand beyond the domestic market, the observer concluded.
If the current trajectory continues, India is well-positioned to emerge as a major global defence manufacturing hub, and the $31 billion production milestone is certainly within reach by the end of this decade.
If the current trajectory continues, India is well-positioned to emerge as a major global defence manufacturing hub, and the $31 billion production milestone is certainly within reach by the end of this decade.
