Defence Manufacturing

The Airbus C295 is a medium-range twin-engine turboprop tactical transport aircraft. In 2021, India signed a $2.6 billion contract with Airbus to purchase 56 C-295 aircraft to replace its ageing Avro-748 fleet, out of which 40 will be Made-in-India.

India and South Korea have signed a series of key defence agreements to deepen military cooperation, expand joint production and strengthen ties in emerging areas like AI, cyber and autonomous systems. Defence Minister Rajnath Singh held high-level talks in Seoul, where both sides reviewed strategic ties across maritime security, technology partnerships and defence manufacturing. With defence exports nearing ₹40,000 crore and ambitious targets ahead, the visit signals a major step in India’s efforts to boost indigenous capabilities and global partnerships.

The NSE Defence Index has risen 20% in one month, fueled by India's strategic focus on defence spending. While long-term growth is anticipated, concerns about high valuations persist. Investors should balance their approach, remaining engaged while being mindful of market expectations.

Paras Defence and Space Technologies' share price rose 8% to a record high of ₹1,943.60 on May 19, continuing a five-day winning streak driven by strong demand for defence stocks amid geopolitical tensions. The stock has gained 32% in May and 142% since hitting a low in April.

Antique Stock Broking predicts a major boost for Indian defence shipyards driven by an order pipeline worth ₹8.45 trillion, with expectations of substantial orders for submarines and frigates, enhancing growth opportunities in the sector.

India's defence boost: State-run defence major HAL received the tender for 156 Light Combat Helicopters (LCH) in June last year. The IAF is the lead agency for this joint procurement.

DAC accorded acceptances of necessity (AoNs) or initial approvals to eight capital acquisition proposals amounting to more than ₹54,000 crore