Rising geopolitics and indigenisation push place India’s defence sector in a structural growth cycle

The broader market has seen significant corrections recently (Sensex plunging 1,470 pts, Nifty below 23,200), making defence a potential defensive play with strong fundamental tailwinds. Geopolitical tensions, as highlighted by the Israel-Iran conflict, further underscore the importance and potential for defence spending.

• •India's defence sector is experiencing a new growth phase.
• •Growth is driven by rising global security concerns, government initiatives for domestic manufacturing, and a strong procurement pipeline.
• •Opportunities are expanding for Indian manufacturers, particularly in export markets.
• •The nation is strengthening its self-reliance in defence production.
• •Risk flag: Potential for government policy changes or budget reallocations.