Defence stocks could remain on investors’ radar after Prime Minister Narendra Modi, in his 12th consecutive Independence Day address, announced ‘Mission Sudarshan Chakra,’ an indigenous missile defence shield, and renewed his call for homegrown jet engines, signalling a fresh push for self-reliance in critical military technologies.
The announcement of ‘Sudarshan Chakra’ came days after Pakistan Army chief Field Marshal Asim Munir reportedly hinted at targeting Indian assets along the border, including Reliance Industries Limited’s Jamnagar refinery in Gujarat, in the event of any future military confrontation between the two neighbouring countries.
Announcing the launch of the new defence system, Modi said it will be aimed at neutralising enemy threats and enhancing India’s offensive capabilities.
The defence sector has been receiving a significant boost in recent years due to escalating geopolitical tensions, particularly in the Indo-Pacific region and along India’s borders with China and Pakistan.
During ‘Operation Sindoor,’ India showcased the strength of its indigenously developed defence systems and successfully intercepted drones and missiles launched by Pakistan. Modi’s announcements further highlight India’s commitment to producing critical military technologies entirely within the country and exporting them globally to friendly nations.
“In the next ten years, by 2035, I want to expand, strengthen, and modernise this national security shield. Drawing inspiration from Lord Shri Krishna, we have chosen the path of the Sudarshan Chakra,” PM Modi said at the ramparts of the iconic Red Fort.
“The nation will be launching the Sudarshan Chakra Mission, and the entire modern system should be researched, developed, and manufactured in India, harnessing the talent of our youth. This powerful system will not only counter terrorist attacks but also strike back at the terrorists,” he added.
This mission aims to develop a Dome-like defence system designed to safeguard critical sites, including civilian areas.
Though the prime minister did not elaborate on the new air-defence system, experts said it could be on the lines of Israel’s Iron Dome all-weather air-defence system, known as a highly effective missile shield.
PM Modi calls for home-grown jet engines for fighter jets
Modi further urged the youth of the country to develop jet engines within India, adding, “Today, I urge the young scientists, talented youth, engineers, professionals, and all departments of the Government that we should have our jet engines for our own Made in India fighter jets.”
His emphasis on developing an indigenous jet engine also assumes significance as it came amid some hitch in sealing a deal between Hindustan Aeronautics Limited (HAL) and US defence major GE Aerospace to jointly produce a jet engine to power the next generation of India’s combat aircraft.
GE Aerospace has faced delays in delivering its jet engines to HAL, which in turn has pushed back the aerospace company’s handover of Tejas fighter jets to the Indian Air Force.
India began work on an indigenous jet engine nearly 35 years ago under the Kaveri engine programme. Sanctioned by the Cabinet Committee on Security in 1989, the project was intended to power the country’s Light Combat Aircraft (LCA). However, the engine is still not ready for operational use.
Defence production hits all-time high
The annual defence production has soared to an all-time high figure of ₹1.5 lakh crore in the FY25. The milestone represents a robust 18% growth over the previous fiscal’s output of ₹1.27 lakh crore, and a staggering 90% increase since FY 2019-20, when the figure was ₹79,071 crore.
India’s domestically manufactured defence products are also gaining global traction, with exports also reaching a record high of ₹23,622 crore in FY 2024–25.
The government now aims to achieve annual defence exports worth ₹50,000 crore by 2029, further expanding its global footprint. Orders for the BrahMos missile surged after it played a crucial role in Operation Sindoor, targeting Pakistani military infrastructure, including air bases, army cantonments, and terror camps.
(With inputs from PTI, ANI)
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