Global Defence Market Boom to Benefit India's Growing Arms Manufacturing Push
Global weapons market to hit $162B by 2035. India's defence manufacturing sector poised to benefit from rising demand under Atmanirbhar Bharat push.
India stands to capitalise significantly from the projected surge in the global weapons and ammunition market, which is expected to grow from USD 59.16 billion in 2025 to USD 162.11 billion by 2035, according to a new SNS Insider report.
The forecast comes at a crucial time for India's defence manufacturing ambitions under the Atmanirbhar Bharat initiative, as the country seeks to reduce import dependency and become a major arms exporter. With the global market growing at a compound annual growth rate of approximately 10.6%, Indian defence manufacturers could tap into expanding opportunities both domestically and internationally.
The market expansion is being driven by rising geopolitical tensions, modernisation of armed forces worldwide, and increased defence spending across nations. This trend aligns with India's own defence modernisation efforts and the government's push to achieve USD 25 billion in defence exports by 2025.
Three key implications emerge for India. First, the growing global demand creates export opportunities for Indian defence companies like Bharat Electronics Limited, Hindustan Aeronautics Limited, and private players such as Tata Advanced Systems and Mahindra Defence. These firms could leverage India's cost advantages and technical capabilities to capture market share.
Second, the market growth validates India's strategic shift towards indigenous defence production. The government's production-linked incentive schemes for defence manufacturing and the recently announced defence corridors in Uttar Pradesh and Tamil Nadu are well-positioned to benefit from this global trend.
Third, increased global competition in the weapons market could provide India with more options for technology transfer partnerships and joint ventures, potentially accelerating the development of critical defence technologies like advanced missiles, electronic warfare systems, and unmanned platforms.
The report highlights particular growth in areas where India has established capabilities, including small arms, ammunition, and electronic systems. However, India will need to continue investing in research and development and quality certifications to meet international standards and compete effectively.
Key factors to monitor include how India's defence export policies evolve, the success of ongoing Make in India defence projects, and whether Indian companies can secure significant contracts in the expanding global market while maintaining their domestic supply commitments.