New Delhi, 18 June (IANS). India’s defense sector is increasing rapidly at the present time and the income of the country’s defense companies will increase by 15-17 percent in FY 26. This information was given in a report released on Wednesday.
ICRA’s analysis stated that the reason for the good increase in income is the strong examination of orders. The order book/operating income (OB/OI) ratio of defense companies at the end of FY 25 was 4.4 times.
The report said that in the last few years, the government has implemented several policy initiatives keeping ‘self -reliant India’ to increase domestic defense production capabilities, encourage investment and expand exports.
These include liberalization of FDI policies in the defense sector, continuing the defense offset policy, establishing two defense industrial corridors and notification of five ‘positive indigenization lists’ and continuous efforts towards indigenization through online indigenization portal ‘creation’.
The report said, “Apart from this, the government has also increased the budget for the sector, emphasizing the capital outlay, which has increased from 8.29 percent CAGR in the last five years to Rs 1.92 lakh crore in the budget estimate (BE) of FY 2026.”
The report reported, “Expenditure on defense purchases from domestic vendors has increased from 61 percent to about 75 percent due to the government’s initiatives, while exports more than 15 times and 41 percent have a strong CAGR with a strong CAGR of FY 2017-Rs 23,622 crore during the period of 2025.”
Supriyo Banerjee, vice-president and co-group chief of ICRA’s corporate ratings, said, “The weighted average operating margin for FY 2026 is expected to be strong at 25–27 percent.”
-IANS
ABS/
