Valued at USD 27.1 Bn in 2024, the market is projected to reach USD 54.4 Bn by 2033, growing at a 6.99% CAGR. The report is segmented by security, service and application, and profiles 17 companies.
The India aerospace and defence market was valued at USD 27.1 Bn in 2024 and is projected to reach USD 54.4 Bn by 2033, growing at a CAGR of 6.99%.
India Aerospace and Defence Market was valued at USD 27.1 Billion in 2024 and is expected to reach USD 54.4 Billion by 2033, at a CAGR of 6.99% during the forecast period 2024 - 2033.
The Aerospace and Defence sector in India involves building aircraft, ships, spacecraft, weapon systems, and defense equipment. Aerospace and defense (A&D) companies sell their products and supporting services and sustainment programs to governments and private companies and other end use industries.
The Aerospace and Defense sector in India is rapidly growing and propelling the growth of the manufacturing sector from the front by manufacturing defense equipment of international quality standards and establishing technologically advanced manufacturing facilities.
Several Indian Aerospace and Defense equipment manufacturing companies have proven themselves capable of providing first-time correct quality comparable to global standards.
India Aerospace and Defence Market Growth Factors
Indian Aerospace and Defence industry is at an inflexion point because of the modernisation and indigenisation programmes undertaken by all three services of one of the largest military forces in the world. An increase in the defense budget of India coupled with increasing governmental support for indigenous defense manufacturing is expected to drive the market growth during the forecast period.
For instance, the Government of India’s Finance Ministry allocated INR 6.21 lakh crore for the Ministry of Defence during the in FY 2024 budget. This marks a 4.3% increase from the previous year, constituting 13.04% of the Union Budget. Thus, growth in defense budget is expected to drive the market growth during the forecast period.
An increase in the number of space programs within the country is expected to drive market growth significantly during the forecast period. For instance, India has launched 424 foreign satellites in the last nine years and noting that the space budget has more than doubled.
Additionally, factors such as growing commercialization in the aerospace and defense sector, growing international collaborations, growing focus on space exploration missions, expansion of defence and aerospace services and development of advanced technologies are expected to boost the production and sale of aerospace and defence equipment’s in India, thereby driving the market growth.
An increase in the number of national security concerns and border threats is also expected to drive the demand for defence and aerospace machinery, devices and equipment during the forecast period. Growing national security concerns and border disputes have encouraged collaboration between the Indian Government and the market players and have led to the formation of several joint ventures to effectively serve the requirements of the Indian Armed Forces.
India Aerospace and Defence Market: Restraints
Various factors such as the high cost of newer technologies, shrinking budgets, rising operational costs, infrastructure management, MRO (Maintenance, Repair and Overhaul) and a complex global supply chain, lack of high end technologies, lengthy and time consuming processes are creating challenges for India Aerospace and Defence Market.
India Aerospace and Defence Market: Opportunities
Supportive government policies such as the Make in India Initiative, Production Linked Incentive Scheme, Defence Testing Infrastructure Scheme are boosting the production and sale of aerospace and defence equipment in India.
For instance, the Government of India have launched Defence Testing Infrastructure scheme to boost domestic defence and aerospace manufacturing with the aim to set up Greenfield Defence Testing Infrastructure as a common test facility for government assistance to promote domestic defence production and bridge the gaps in defence testing infrastructure in the country. Such supportive government policies are expected to create lucrative opportunities for the market during the forecast period.
Additionally, The Indian aerospace and defence market is creating significant opportunities for Indian and foreign companies across the supply and values chain. India has the third-largest armed forces in the world, and its defence budget is about 1.90% of its GDP.
India is one of the largest importers of conventional defence equipment and spends about 40% of its total defence budget on capital acquisitions. About 70% of its defence requirements are met through imports. Thus these factors are expected to create lucrative opportunities for many global players to enter in Indian Market.
India Aerospace and Defence Market: Segmentation Analysis
India's Aerospace and Defence market is segmented by security, service, application and region. By Security, India's aerospace and defense market is segmented into cybersecurity, homeland security, border security and others.
Among all of these, the border security segment held the highest market share in 2023 and is expected to keep its dominance during the forecast period owing to growing border disputes and geopolitical conflicts. Increasing threats from neighbouring countries and growing border disputes with China, Bangladesh and Pakistan are expected to boost the demand for aerospace and defense equipment in India.
To address these challenges, India has increased its military presence along the borders and improved its aerospace and defence infrastructure. The cybersecurity segment is expected to grow at substantial growth rates during the forecast period owing to increasing cyber-attacks and growing demand for safeguarding data and privacy.
By service, India's aerospace and defense market is segmented into Maintenance, Repair & Operations (MRO), Modelling, Training & Simulation (MTS) and Logistics. Among all of these services, Modelling, Training & Simulation (MTS) service held the highest market share in 2023 and is expected to keep its dominance during the forecast period.
A rapidly evolving threat environment necessitates efficient training courses that enable security and military forces to quickly pivot to changes. Repair & Operations (MRO) is expected to hold a substantial market share during the forecast period. As Indian forces strive to do more without increasing their costs, one critical area for improving performance is equipment maintenance, repair, and overhaul (MRO).
By Application, India's aerospace and defense market is segmented into land, air, and sea. Among all of these segments, the Air application segment held the highest market share in 2023 and is expected to keep its dominance during the forecast period driven by the burgeoning demand for advanced infrastructure and growing demand for advanced aircraft missiles.
The land segment is expected to hold a substantial market share during the forecast period. The land application segment includes small arms, tanks, armoured fighting vehicles, artillery, mine warfare and communication equipment.
Report Scope
| Feature of the Report | Details |
| Market Size in 2024 | USD 27.1 Billion |
| Projected Market Size in 2033 | USD 54.4 Billion |
| Market Size in 2023 | USD 25.5 Billion |
| CAGR Growth Rate | 6.99% CAGR |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Key Segment | By Security, Service, Application and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| India Scope | India |
| Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
India Aerospace and Defence Market: Regional Analysis
India Aerospace and Defence market is segmented into North India, South India, East India, and West India. Among all these regions, North India held a significant market share of India's Aerospace and Defence Market in 2022 and is expected to grow at a significant pace during the forecast period.
Northern states such as Punjab, J&K and Himachal Pradesh share borders with many neighbouring countries, growing border disputes with these countries driving the market growth of this region.
West India is expected to emerge as a potential region during the forecast period. States like Maharashtra, Gujrat, and Madhya Pradesh are playing a major role in driving the growth of this region. Increasing production and defence and aerospace equipment in these states and the presence of many naval and military bases are driving the market growth of this region.
Source: Custom Market Insights analysis.
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India Aerospace and Defence Market: Recent Developments
List of the prominent players in the India Aerospace and Defence Market:
These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.
The India Aerospace and Defence Market is segmented as follows:
By Security
By Service
By Application
Updated: January 2026 · Formats: PDF, Excel, PPT
The restraints of the Indian Aerospace and Defence market includes stringent regulations, counterfeiting of Aerospace and Defence devices, lack of advanced technology, high cost of defence technologies etc.
The major drivers for the India Aerospace and Defence market are supportive government policies, increasing defence budget, growing border disputes and changing geo political situations.
The "Services" category dominated the market in 2023.
The key players in the market are Bharat Forge companies in Ordinance Factory Board, Bharat Electronics Limited, Bharat Dynamics Limited, Hindustan Aeronautics Ltd, Mahindra, Reliance Defense, Adani Aerospace and Defense , Tata Power Strategic Engineering Division, Tata Advanced Systems Limited, Northrop Grumman Corporation, Thales Group, Lockheed Martin Corporation, Honeywell international, Inc., BAE Systems, The Boeing Company, United Aircraft Corp, Dassualt Aviation SA, Others.
The market is projected to grow at a CAGR of 6.99% during the forecast period, 2024-2033.
The India Aerospace and Defence Market size was valued at USD 27.1 Billion in 2024.
Author · Sr. Research Analyst
Ayush Kadam is a Senior Market Research Analyst at Custom Market Insights, with over seven years of experience in syndicated and custom market research. He specializes in market sizing, competitive intelligence, industry trends, forecasting, and strategic insights, helping clients turn complex data into actionable business decisions.
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