A day before the budget 2025 was introduced, the defense stocks saw a good jump on 31 January. Garden Reach Shipbuilders, Paras Defense, Bharat Electricals Limited, Hindustan Aeronautics, Majgaon Dock, Cochin Shipyards, Bharat Dynamics shares showed up to 6.5 percent. This was more and more during the day. It is expected that the allocation for the defense sector in the budget will be more this time.
Market experts believe that the upcoming budget has the strength to give a new shape to India’s defense landscape by giving preference to modernization, self -reliance and technological advocacy. Increased investment and strategic policy initiatives can not only strengthen national security but also establish India as a very powerful country in the global defense market.
Garden Reach Shipbuilders are the biggest boom
On January 31, the highest number of 6.5 percent rose on BSE was seen in the shiyars of Garden Reach Shipbuilders & Engineers. This was followed by Paras Defense and Majhgaon dock shipbuilders. Paras Defense rose by more than 6 percent and Majhgaon Dock was about 6 percent. India Electronics rose 5 percent. Cochin Shipyard, Hindustan Aeronautics and India dynamics jumped 4 percent. Defense shares may rise further during the budget being presented on 1 February.
India’s defense spending increased by 8.1 percent CAGR in a decade
According to data from the Ministry of Defense, India’s defense spending in the last decade has increased by 8.1 percent of the annual growth rate (CAGR). This expenditure was Rs 2.85 lakh crore in the financial year 2014-15. It increased to Rs 6.22 lakh crore in FY 2024-25.
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Amey Belorkar, fund manager of Defense and Aerospace Venture Fund of IDBI Capital Markets & Securities, says, “We guess that the budget of FY 2025-26 is important to gain India’s progress in the direction of budget defense and self-reliance in aerospace sectors The role will play a big expansion in both areas. More emphasis on emerging areas like defense and space technology can open big opportunities for private investment. “