Defence stocks came under investors’ radar today, August 18, with names like Data Patterns, Zen Technologies, Bharat Dynamics, Garden Reach Shipbuilders, DCX Systems, ideaForge Technology, and Mazagon Dock Shipbuilders rising between 1% and 4% following the government’s strong push to manufacture critical military equipment locally in a bid to further reduce dependence on foreign technologies.
Prime Minister Narendra Modi, in his Independence Day address, announced ‘Mission Sudarshan Chakra’ and renewed his call for homegrown jet engines. The announcement of indigenous air-defence system came just days after Pakistan Army chief Field Marshal Asim Munir reportedly hinted at targeting Indian assets along the border.
During ‘Operation Sindoor,’ India showcased the strength of its indigenously developed defence systems by successfully intercepting 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.
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 suggested it could be on the lines of Israel’s Iron Dome all-weather missile shield, known for its high effectiveness.
Modi further urged Indian innovators and youngsters to develop jet engines within the country, ensuring that future defence technology is entirely home-grown and self-reliant.
Work on an indigenous jet engine began 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.
The defence sector has been receiving a significant boost in recent years, with increased budget allocations that have expanded orders for domestic defence companies and strengthened the nation’s borders amid escalating geopolitical tensions, particularly in the Indo-Pacific region and along India’s frontiers with China and Pakistan.
In FY25, the country achieved a milestone as annual defence production reached an all-time high of ₹1.5 lakh crore, representing robust 18% growth over the previous fiscal’s output of ₹1.27 lakh crore and an impressive 90% jump since FY20, when the figure was ₹79,071 crore.
India’s domestically manufactured defence products are also gaining global traction, with exports hitting a record high of ₹23,622 crore in FY25. 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 also surged after it played a crucial role in Operation Sindoor, targeting Pakistani military infrastructure, including air bases, army cantonments, and terror camps.
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