Lighthouse Canton flags India defense sector as structural multi-year theme as spending hits $92.1 billion
INDA•Budget allocation and capital acquisition increase
Union Budget 2026-27 set defense allocation at INR 7.85 lakh crore, up 15%; capital acquisition exceeded INR 2.19 lakh crore.
About 75% of capital acquisition, roughly INR 1.39 lakh crore, is reserved for domestic industry, supporting mid- and small-cap suppliers outside benchmark indices.
Defense exports rise and government target set higher
Defense exports hit INR 38,424 crore in FY 2025-26, up 62.66%; the government set a target of INR 50,000 crore by 2029.
India defense sector flagged as a multi-year structural theme
Lighthouse Canton analysis flagged India’s defense sector as a multi-year structural theme, driven by higher global military spending and a shift toward strategic self-sufficiency.
India’s defense expenditure reached USD 92.1 billion in 2025, ranking fifth globally, according to SIPRI’s 2026 Yearbook.
