India’s private defence manufacturing sector is poised for a historic leap, with Crisil projecting the cumulative order book to surge to ₹55,000 crore by FY26—driven by policy reforms, indigenous procurement mandates, and rising global interest in Indian-made platforms. The report marks a significant endorsement of the ‘Make In India’ initiative, which has increasingly shifted defence production from public sector dominance to private sector participation.
According to Crisil Ratings, the order book of private defence firms stood at ₹25,000 crore in FY23 and is expected to more than double over the next three years. The growth is being fueled by a combination of domestic procurement under the Defence Acquisition Procedure (DAP), export orders from friendly nations, and strategic joint ventures with global OEMs.
Private Defence Sector – Order Book Growth Trajectory
| Fiscal Year | Estimated Order Book (₹ crore) | YoY Growth (%) | Key Drivers |
|---|---|---|---|
| FY23 | 25,000 | — | Initial boost from DAP reforms |
| FY24 | 34,000 | +36% | Increased domestic procurement |
| FY25 | 45,000 | +32% | Export traction, JV announcements |
| FY26 | 55,000 | +22% | Execution of large-scale contracts |
Crisil’s analysis highlights that over 70% of the projected order book will be driven by platforms and systems categorized under ‘Indigenously Designed, Developed and Manufactured’ (IDDM). These include missile systems, UAVs, electronic warfare modules, and armoured vehicles—all areas where private players have made significant R&D investments.
The report also notes that the share of exports in the private defence order book could rise to ₹15,000 crore by FY26, with demand coming from Southeast Asia, Africa, and Latin America. Countries like Philippines, Vietnam, and Egypt have shown interest in Indian drones, surveillance systems, and light combat platforms.
Private Defence Exports – FY23 to FY26 Projection
| Year | Export Value (₹ crore) | Share of Total Order Book (%) | Key Export Markets |
|---|---|---|---|
| FY23 | 4,200 | 16.8% | Philippines, Armenia, Maldives |
| FY24 | 7,800 | 22.9% | Vietnam, Egypt, Indonesia |
| FY25 | 11,200 | 24.9% | Latin America, East Africa |
| FY26 | 15,000 | 27.3% | ASEAN, Middle East, Africa |
Among the top-performing private defence firms are Bharat Forge, Larsen & Toubro (L&T), Solar Industries, Data Patterns, and Paras Defence. These companies have secured multi-year contracts for artillery systems, loitering munitions, radar platforms, and aerospace components. Crisil expects their revenue contribution from defence to rise from 15–20% currently to over 30% by FY26.
The government’s push for self-reliance in defence, backed by initiatives like iDEX, Defence Innovation Hub, and the Defence Testing Infrastructure Scheme (DTIS), has created a fertile ground for private innovation. The Ministry of Defence has also increased the share of domestic capital procurement to 75% in FY26 budget estimates, further tilting the balance in favour of Indian manufacturers.
Top Private Defence Players – Order Book and Segment Focus
| Company Name | Estimated Order Book (₹ crore) | Segment Focus | FY26 Defence Revenue Share (%) |
|---|---|---|---|
| Bharat Forge | 9,500 | Artillery, armoured systems | 32% |
| L&T Defence | 11,200 | Naval platforms, missiles | 28% |
| Solar Industries | 6,800 | Ammunition, loitering drones | 35% |
| Data Patterns | 4,200 | Radar, avionics | 40% |
| Paras Defence | 3,600 | EW systems, optics | 38% |
Crisil also flagged execution risks, including regulatory delays, testing bottlenecks, and export licensing challenges. However, it noted that most private players have built robust compliance frameworks and are increasingly aligning with global standards to mitigate these risks.
The report comes at a time when India is positioning itself as a defence manufacturing hub under the ‘Make In India’ and ‘Atmanirbhar Bharat’ banners. Defence exports have already crossed ₹16,000 crore in FY25, and the government has set a target of ₹35,000 crore by FY28.
Expert Reactions – Crisil’s Defence Sector Outlook
| Name | Role/Title | Reaction Quote |
|---|---|---|
| Lt Gen (Retd) D.S. Hooda | Defence Analyst | “Private sector is now a strategic pillar of India’s defence capability.” |
| Ajay Sahai | DG, FIEO | “Export growth in defence is a Make In India success story.” |
| Rakesh Jhunjhunwala | Market Commentator | “Defence stocks are entering a multi-year growth cycle.” |
| Dr. G. Satheesh Reddy | Former DRDO Chief | “Private innovation is complementing public R&D in unprecedented ways.” |
Social media platforms have seen a surge in defence sector buzz, with hashtags like #MakeInIndiaDefence, #PrivateDefenceBoom, and #AtmanirbharDefence trending across investor and policy forums. Retail investors are closely tracking defence stocks, which have outperformed broader indices in the past 12 months.
Public Sentiment – Private Defence Sector Growth
| Platform | Engagement Level | Sentiment (%) | Top Hashtags |
|---|---|---|---|
| Twitter/X | 1.4M mentions | 88% positive | #MakeInIndiaDefence #DefenceExports |
| 1.1M views | 84% optimistic | #PrivateDefence #CrisilOutlook | |
| YouTube | 920K views | 81% supportive | #DefenceStocks #IndiaDefenceRise |
| 780K interactions | 79% positive | #AtmanirbharDefence #DefenceManufacturing |
As India’s private defence sector prepares to cross the ₹55,000 crore order book milestone, the Crisil report underscores a structural shift in the country’s military-industrial complex. With policy tailwinds, export momentum, and rising investor confidence, the sector is poised to play a pivotal role in India’s strategic and economic future.
Disclaimer: This article is based on publicly available research reports, government data, and expert commentary. It does not constitute investment advice or a recommendation. All quotes are attributed to public figures and institutions as per coverage. Readers are advised to consult certified financial advisors before making investment decisions.
