Defence stocks surged by as much as 7% on Tuesday after Prime Minister Narendra Modi, in his address to the nation on Monday following the halt in military operations between India and Pakistan, urged for “Made In India” defence equipments. Modi also emphasized the need for increased self-reliance in the military, following India’s initiation of Operation Sindoor in response to the Pahalgam terrorist attack on April 22.
Bharat Electronics (BEL) shares rose by 4.5%, reaching an intraday high of ₹337.30 each during trading on Tuesday. Bharat Dynamics share price experienced a gain of 7.8%, touched an intraday high of ₹1,692.35. In addition, Hindustan Aeronautics shares (HAL shares) jumped by 4%, reaching an intraday high of ₹4,617 per share. Solar Industries experienced a rise of 2.2%, hitting intraday highs of ₹13,583.70. Mazagon Dock Shipbuilders shares climbed by 4%, reaching an intraday high of ₹3,022.30 each on the BSE.
Prime Minister Modi emphasized that India has demonstrated its capabilities in modern warfare. He stated that the moment has arrived for ‘Made in India’ defense products. The Prime Minister noted that India has enforced a policy of zero tolerance towards terrorism.
As reported by the media, his advocacy for local defense production coincides with rapid advancements in India’s domestic defense sector. Official data indicates that the nation’s defense manufacturing reached ₹1.27 lakh crore in FY24—a remarkable 174% increase since 2014-15—driven mostly by the Make in India initiative. Defense exports also achieved a record of ₹21,083 crore in the same fiscal year, marking a thirty-fold rise over the last ten years, with deliveries made to over 100 countries, according to reports.
Air Marshal SB Deo (retired), the former Vice Chief of the Indian Air Force, shared with CNBC-TV18 that the initiative for defense self-reliance has been in progress since 2014, but the government’s methods have notably evolved in recent years. He highlighted the success of indigenous projects such as the Akash missile and drone production in Bengaluru as proof that India’s industrial capacity can fulfill military needs.
