India's defence sector is on the cusp of a 'super cycle' of growth, driven by escalating geopolitical conflicts and a strong policy push towards indigenous manufacturing, with major players like BEL, HAL, and BDL poised for significant order inflows and technological advancements.
'The share of the private sector is at its all-time high of around Rs 42,000 crore in FY26, reflecting its expanding role in the defence ecosystem.'
After lagging behind the broader market over the past three and six months, defence sector stocks have regained ground, reversing their performance from the past month. Concerns about slowing order inflows, execution hurdles, supply chain disruptions, and high valuations had weighed on the sector.
Pakistan has increased its defence budget by 17.6 per cent to PKRs 3,000 billion for the upcoming fiscal year, as announced by Finance Minister Muhammad Aurangzeb. The federal budget, estimated at PKRs 18,771 billion, targets 4 per cent GDP growth, with significant allocations for debt service and pensions. Prime Minister Shehbaz Sharif highlighted economic stability and ongoing discussions with the IMF, while the opposition protested Imran Khan's incarceration during the budget session.
'DRDO has been directed to license missile technologies to the private sector.'
Larsen & Toubro Ltd (L&T) is deepening its push into data centres and defence manufacturing while keeping an eye on emerging opportunities in nuclear and thermal power, chairman and managing director SN Subrahmanyan said. The engineering and construction conglomerate has invested around Rs 2,200 crore in data centres, with 32 megawatts (Mw) already operational.
Kalyani Strategic Systems' subsidiary, Agneyastra Energetics Ltd, has commenced construction of a Rs 1,500-crore defence manufacturing facility in Andhra Pradesh, aiming to enhance India's indigenous defence capabilities and generate employment.
The remarkable rise of smallcaps reflects the emergence of a broad set of specialised businesses operating in industries where the sectoral tailwinds remain considerably stronger than macroeconomic headwinds, points out Debashis Basu.
An Indian Army contingent, Navy warships INS Tarkash and INS Ikshak, and a naval band are participating in Seychelles' Golden Jubilee National Day celebrations. Prime Minister Narendra Modi is attending as the Guest of Honour, underscoring the strong strategic partnership and defence cooperation between India and the archipelago nation.
Adani Group and Brazilian aerospace firm Embraer have selected Dholera, Gujarat, as the location for a final assembly line for Embraer's regional jets. This strategic collaboration, formalised by an MoU in January, aims to boost India's Regional Transport Aircraft programme and align with the Aatmanirbhar Bharat initiative and UDAN scheme. Embraer sees immense potential in the Indian market across various aviation segments.
In 2025-26, the government allocated Rs 6,81,210 crore for defence budget.
The planned India-Japan annual summit, featuring Japanese PM Sanae Takaichi and Indian PM Narendra Modi, has been moved from Guwahati to New Delhi due to logistical issues and Takaichi's tight schedule. The summit, scheduled for July 1-3, aims to boost bilateral ties with discussions on investment, supply chain deals, energy resilience, and strategic oil reserves, accompanied by a delegation of 50 Japanese companies.
An innovation roadmap, a mechanism to double annual bilateral trade within next five years, and a joint artificial intelligence framework were among 13 outcomes to emerge from wide-ranging talks between Prime Minister Narendra Modi and President Emmanuel Macron on Sunday.
The visit was expected to project Assam as the gateway to Southeast Asia and reinforce the state's emergence as a preferred investment destination.
India's defence expenditure surged to $92.1 billion in 2025, making it the world's fifth-largest military spender, according to SIPRI data. This 8.9 per cent year-on-year rise was primarily driven by operational and procurement needs following heightened regional tensions with Pakistan in May 2025.
Prime Minister Narendra Modi's visit to Italy concluded with the elevation of India-Italy relations to a Special Strategic Partnership, focusing on enhanced cooperation across various sectors.
Prime Minister Narendra Modi and US President Donald Trump are set to hold comprehensive talks focusing on a bilateral trade deal, defence cooperation, and energy and critical minerals sectors during the G7 summit in Evian-les-Bains, France.
'Exploration should be made easier and companies should be given operational flexibility.'
Prime Minister Narendra Modi arrived in Sweden to hold talks on trade, technology, defence and other key sectors with his Swedish counterpart Ulf Kristersson.
India's foreign direct investment (FDI) inflows are projected to surpass $90 billion in 2025-26 (FY26), driven by robust policy reforms, free trade agreements, and strong economic growth, according to DPIIT Secretary Amardeep Singh Bhatia.
The Indian government is planning to develop an unmanned combat search and rescue aircraft for the Indian Air Force, designed to operate autonomously and in challenging terrains.
Under the defence partnership, India and the UAE are eyeing defence industrial collaboration and cooperation in advanced technologies, cyberspace training, special operations, interoperability of their militaries and counter terrorism.
The Indian Air Force (IAF) is establishing a maintenance facility for GE Aerospace's F404-IN20 jet engines, which power the Tejas light combat aircraft, with technical support from GE Aerospace. This initiative aims to enhance India's indigenous defence capabilities and reduce reliance on overseas repair centres.
A 23-year-old criminal, Nitin alias Chhota, wanted in a kidnapping-for-ransom case, was arrested in Gurugram after an encounter with police. He was injured in the exchange of fire and is currently hospitalised. The accused has a history of 17 criminal cases across Delhi and Haryana, including dacoity and murder.
The IAF's future operational concepts could involve indigenous Tejas combat aircraft coordinating in real time with multiple Ghatak RPSAs, each carrying a different mission payload ranging from electronic warfare systems and targeting sensors to precision munitions.
Prime Minister Narendra Modi will visit the UAE, the Netherlands, Sweden, Norway and Italy to deepen India's bilateral ties amid geopolitical changes.
'We won not (only) because we were able to carry out long-range precision strikes.' 'That is, of course, one of the reasons but we had better situational awareness about what's happening than Pakistan.'
Assam emerged as the fastest-growing large state with a remarkable 17.3 per cent nominal GDP CAGR over five years.
The Delhi High Court has asked a review committee to examine the blocking of the Cockroach Janta Party's X account, refusing to order its immediate unblocking but allowing the party's founder to appear before the committee.
'If you go by the capital expenditure, this is a good defence budget. But we will have to see if the government can keep defence spending at 2 per cent or higher in 2027-2028.'
Prime Minister Narendra Modi has begun a six-day tour of the UAE, the Netherlands, Sweden, Norway and Italy to strengthen bilateral relations amid geopolitical challenges. The trip will focus on energy security, trade, and technological cooperation.
India's three major listed shipyards - Mazagon Dock Shipbuilders Limited (MDL), Garden Reach Shipbuilders & Engineers Limited (GRSEL), and Cochin Shipyard Limited (CSL) - are poised for substantial growth, driven by a robust order pipeline from the Indian Navy and diversification into commercial and export markets.
Foreign secretary Vikram Misri on Friday shared key details on agreements between India and the UAE, stating that the UAE will store up to 30 million barrels of crude oil in India's strategic petroleum reserve following Prime Minister Narendra Modi's visit.
JPMorgan has downgraded Indian equities to 'neutral' from 'overweight', citing elevated valuations, rising earnings risks, and limited exposure to next-generation technology like AI. The brokerage believes other emerging markets offer more attractive risk/reward propositions despite India's strong structural growth story.
The Indian government is actively promoting manufacturing in the rapidly expanding aerospace sector, with collaborations between Indian and foreign companies leading to the establishment of new facilities.
If TVK MLAs and ministers are perceived as clean, or demonstrably cleaner than their predecessors, the credibility dividend will be enormous. The voter will feel rewarded, points out Ramesh Menon.
'Make-in-India played a key role in India's effective action against terrorism during Operation Sindoor.'
History is rarely decided by who has the biggest weapons, but by who has the better process. The same rule applies to investing, says Ramalingam Kalirajan.
India's newly formed Artificial Intelligence Governance and Economic Group (AIGEG) is set to advocate for a unified legal framework for AI companies, including developers of large language models and chatbot systems, alongside broader operational rules.
Over the years, India-EU ties have grown, and covered trade, investment, climate change, science and technology, space, digital, mobility, and connectivity.
