The India aerospace and defence market is witnessing remarkable growth, driven by various government initiatives like 'Make in India' and increased defence budgets. As of 2025, the market size was estimated at USD 30.72 Billion and is projected to grow at a CAGR of around 7.10% through 2035. This growth is expected to propel the market to attain USD 61.00 Billion due to the heightened defence requirements, technological advancements, and the emphasis on indigenous manufacturing and self-reliance.
Directed-energy weapons and hypersonic missile systems have been successfully tested by the Defence Research and Development Organisation (DRDO), boosting the country's strategic ability. The Combat Air Teaming System (CATS) Warrior, an unmanned combat aerial vehicle designed by Hindustan Aeronautics Limited (HAL), showcases advancements in autonomous systems. The Aero India 2025 show featured the latest technologies, such as AI-based solutions and stealth aircraft, demonstrating India's focus on innovation and international cooperation. These technologies, combined with greater private sector involvement and international collaborations, establish India as an emerging leader in the international aerospace and defence sector.
The growth in defence exports and the development of two defence industrial corridors in Uttar Pradesh and Tamil Nadu are two main factors augmenting the demand for aerospace and defence innovations in India. The corridors are leading to the formation of clusters for manufacturing and innovation, attracting both indigenous and foreign firms. Defence exports increased to more than INR 16,000 crore in FY24, a sign of increasing international faith in India's capabilities, thus driving the growth of the India aerospace and defence market.
The Indian military is significantly advancing its electronic warfare and unmanned aerial vehicle (UAV) capabilities, focusing on enhancing border surveillance and tactical responsiveness. Simultaneously, the development of dual-use airfields and drone testing corridors in states like Andhra Pradesh and Gujarat is accelerating. These infrastructures are designed to support indigenous drone manufacturing, facilitate rapid deployment, and encourage private-sector innovation aligned with national security and self-reliance goals under the Make in India initiative.
Aerospace component and MRO (Maintenance, Repair, and Overhaul) service demand is also on the rise. India's commercial aviation industry is thriving with growth in fleet size by airlines such as IndiGo and Air India. In support of this growth, India is creating its own local MRO capacity, lowering reliance on global hubs and reducing operational costs for carriers. For example, Air India and Tata Advanced Systems signed an MoU in February 2024 to build a 35-acre MRO complex at Kempegowda International Airport, supporting wide-body and narrow-body aircraft maintenance, operational by early 2026.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
7.1%
Value in USD Billion
2026-2035
*this image is indicative*
|
India Aerospace and Defence Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
30.72 |
|
Market Size 2035 |
USD Billion |
61.00 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
7.10% |
|
CAGR 2026-2035 - Market by Region |
South India |
8.1% |
|
CAGR 2026-2035 - Market by Region |
East India |
7.6% |
|
CAGR 2026-2035 - Market by Platform |
Aerospace |
7.5% |
|
CAGR 2026-2035 - Market by Offerings |
Communication Systems |
8.3% |
|
2025 Market Share by Region |
West India |
27.2% |
India is experiencing a shift towards indigenization with the "Aatmanirbhar Bharat" drive. Major platforms such as the LCA Tejas, HAL Prachand, and INS Vikrant demonstrate the increasing design and manufacturing capability of India. The trend diminishes foreign dependence and creates self-reliance in key systems. AI and drone technology is transforming battlefield strategies, propelling the demand of the India aerospace and defence market. Unmanned Aerial Vehicles (UAVs), autonomous observation systems, and AI-driven analytics are being more used for border patrols, intelligence gathering, and combat.
The space industry is gravitating more towards new innovations, led by ISRO and private players under the IN-SPACe initiative. Startups are placing satellites in orbit, developing propulsion systems, and creating Earth observation platforms. India's moon and Mars missions have generated a generation of aerospace entrepreneurs and drawn big funding. Defence-tech startup growth is accelerating innovation, thereby boosting the India aerospace and defence market expansion. More than 300 startups are currently operating in the defence sector with the support of the iDEX (Innovations for Defence Excellence) platform. These companies are creating next-generation systems in communications, robotics, smart armour, and cyber defence.
India is accelerating indigenous UAV initiatives for combat and strategic surveillance. DRDO Rustom and TAPAS BH-201 UAVs are under advanced stages of testing. Defence Acquisition Council sanctioned more than ₹4,000 crore for UAV purchases in 2023. Companies such as ideaForge (NETRA V4 UAV) are collaborating with forces. These UAVs increase border surveillance, lower troop exposure, and are evidence of India's inclination towards unmanned aerial solutions.
Additive manufacturing (3D printing) is picking up pace for component making and prototyping. HAL and DRDO are implementing 3D-printed titanium components for fighter aircraft and missile systems. Bharat Forge is investing in metal 3D printing for artillery hardware. The process lowers the cost, increases accuracy, and shortens development timelines. The Indian Navy is experimenting with 3D-printed spare parts on ships to improve readiness and lower logistical costs.
India is converging dual-use satellite technologies both for civilian and defense purposes. ISRO's Cartosat satellites acquire high-resolution imagery for military purposes. These activities are coordinated by the Indian Defence Space Agency established in 2019. In 2022, India successfully tested the "Mission Shakti," an ASAT weapon, demonstrating space defense capabilities. Private companies such as Pixxel are sending hyperspectral imaging satellites supporting strategic surveillance, environmental monitoring, and battlefield awareness in real-time.
The EMR’s report titled “India Aerospace and Defence Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Platform
Key Insight: Military aviation is the most prominent segment of India's defence aerospace platform segment, propelled by massive purchases of fighter aircraft, helicopters, and UAVs. Major programs such as the Tejas program and Apache and Rafale purchases strengthen military air capabilities. Increasing geopolitical tensions and the Indian Air Force's modernization guarantee continued investment, making military aviation the cornerstone of India's defence aerospace expenditure.
Market Breakup by Offerings
Key Insight: Weapons and ammunition dominate offerings because of ongoing demand for indigenously made, modernised weapons among all three defence forces. Domestic manufacturing of rifles, missiles, and artillery has witnessed growth under 'Make in India.' DRDO joint ventures and foreign defence OEM partnerships further boost local capabilities, making weapons and ammunition the core segment in India's defence procurement.
Market Breakup by Service
Key Insight: Manufacturing, design, and engineering take a lead because of a strong thrust for indigenous production and self-sufficiency. Organisations like HAL, BEL, and private sector majors like Tata and L&T commit huge investments in domestic design and assembly of defence platforms. Government policies favouring IP ownership and technology transfer further enhance this segment's leadership in aerospace and defence development.
Market Breakup by Region
Key Insight: Regionally, South India is at the forefront, with Karnataka and Telangana becoming defence production hubs. Bengaluru is home to HAL, DRDO, and ISRO centres, fuelling aerospace innovation and production. Hyderabad's ecosystem facilitates missile and aviation production. State incentives, well-developed infrastructure, and effective public-private partnership make South India the leading region in India's aerospace and defence ecosystem.
|
CAGR 2026-2035 - Market by |
Region |
|
South India |
8.1% |
|
East India |
7.6% |
|
West India |
XX% |
|
North India |
XX% |
Tejas, Rafale, and UAVs drive India’s military aviation sector leadership.
Military aviation is led by huge procurement projects such as Tejas, Rafale, and Apache helicopters. The concentration on aircraft warfare capabilities and border patrols ensures ongoing governmental investment, thus boosting the growth of the India aerospace and defence market. HAL's aircraft manufacturing and DRDO's UAV advancements lock in military aviation's position still further, with focus on indigenisation, fleet growth, and autonomous combat readiness defining the segment's dominance.
India's space industry develops at the fastest rate with ISRO's increased satellite launches, PSLV missions, and private players such as Skyroot Aerospace. Space-based surveillance and communication defence applications are increasing. Private investment and the government's Defence Space Agency increase space technology growth, making it the fastest-growing aerospace-defence integration platform.
Missile, rifle, and artillery production sustain weapons’ dominance in defence spending.
Ammunition and weapons lead as more and more advanced artillery, missiles, and small arms are procured under Make in India initiative. Indigenous platforms such as Akash, Pinaka, and joint ventures with companies such as SSS Defence fuel this. Modernisation requirements in army, navy, and air force push consistent investment, making this segment the hub of India's war readiness.
Communication systems increase at the highest rate due to battlefield operations digitization and adoption of encrypted, real-time data networks. Defence networks such as AFNET and BNET, and satellite-based communication devices, take top priority for secured command and control. DRDO and private players are driving secure communication solutions at the fastest rate, making it the fastest-growing offering.
Indigenous design and production efforts solidify this segment’s market dominance.
Manufacturing dominates due to localised production of platforms like Tejas jets, Akash missiles, and Arjun tanks. HAL, L&T, and Tata lead in engineering capabilities. Government incentives for design IP ownership and defence corridor developments strengthen the segment’s lead, supported by DRDO’s R&D pipeline and reduced dependency on foreign systems, thereby bolstering the India aerospace and defence market development.
MRO services are growing fast to facilitate ageing fleet upgrades and minimize downtime. Steadily rising indigenisation of spares and defence MRO-specific zones in Tamil Nadu and UP fuel this sector. HAL and private companies are expanding repair facilities to cater to domestic and export customers, making MRO the fastest-growing service.
Presence of Key Organisation in South Indian Region Promotes Regional Growth
South India accounts for the largest share of India's A&D market and is home to key hubs such as Bengaluru, Hyderabad, and Chennai. They are hubs for aerospace R&D, manufacturing, and space missions. They are home to aerospace and defence giants such as HAL, ISRO, and several private companies, giving the area a high density of innovation ecosystem. Bengaluru alone produces more than 25% of India's aerospace output. It has well-established R&D ecosystems, skilled workforce, and advanced manufacturing infrastructure, thus boosting the India aerospace and defence market expansion.
North India, with the states of Uttar Pradesh leading the charge, is the most rapidly growing region owing to the committed defence corridor and mega-scale manufacturing units being established. This has attracted more than INR 24,000 crore worth of investment commitments. Sufficient land, dynamic policies, and increasing public-private partnerships are making it a strategic defence manufacturing hub.
Major India aerospace and defence market players are looking for strategic partnerships, technology transfer, and capacity addition. HAL, for example, is having collaborations with foreign OEMs for joint manufacturing and sourcing of components. Tata and Adani are investing in drone systems and large-capacity manufacturing facilities. The India aerospace and defence companies are proactively expanding with strategic takeovers, higher R&D expenditure, and winning government contracts under schemes such as Make in India. For example, Tata Advanced Systems has partnered with Lockheed Martin to produce C-130 aircraft parts, while Larsen & Toubro has designed indigenous defence hardware for the Indian Armed Forces. Several companies are setting up separate export departments and going for foreign partnerships to address global demand. Bharat Forge, for instance, has set up defence subsidiaries and is shipping out artillery systems. These initiatives support India's goal of emerging as a leading global defence exporter and innovation hub.
Founded in 1940 in Bengaluru, HAL dominates India's aerospace industry with indigenous aircraft, helicopters, engines, and avionics, serving defence and space organizations. It has certified production and R&D facilities globally. HAL has manufactured major platforms such as LCA Tejas, Dhruv helicopter, and Sukhoi-30MKI under license. It provides defence forces and space agencies in India and exports to Africa and Southeast Asia.
Founded in 1970 in Hyderabad, BDL produces strategic missile systems for India's defence forces and exports. It is India's only manufacturer of native missile systems such as Akash, Astra, and Nag. BDL serves the defence requirements of India and also exports to friendly countries, further consolidating India's geopolitical influence.
Founded in 1954 in Bengaluru, BEL supplies electronic warfare, radars, and communications systems. It provides tri-services and exports defence electronics internationally. BEL possesses state-of-the-art certifications and dominates India's digital battlefield infrastructure. It has developed indigenous projects like Akash Radar, naval sonars, and encrypted communication networks.
Established in 2007 in Hyderabad, TASL provides UAVs, aerospace parts, and missile systems via global collaborations. It exports to more than 25 nations, complementing the Make in India initiative with high-technology, certified manufacturing units. The company holds AS9100 and ISO 27001 certifications, reinforcing its focus on aerospace quality and information security in advanced defence programs.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the report include Airbus SAS, General Electric Company, Collins Aerospace, Defence Research & Development Organisation, Mahindra Aerospace Private Limited, and Adani Defence and Aerospace, among others.
Download your free sample report on the India Aerospace and Defence Market Forecast 2026–2035. Discover emerging trends, competitive insights, and opportunities shaping India’s defence future. Make informed decisions with expert-backed research and stay ahead in a dynamic sector.
Upto 15% Off
USD
$2499 $2249
$3999 $3599
$4999 $4249
$5999 $5099
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2025, the India aerospace and defence market reached an approximate value of USD 30.72 Billion.
The market is projected to grow at a CAGR of 7.10% between 2026 and 2035.
The key players in the market includes Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Bharat Electronics Limited (BEL), Tata Advanced Systems Limited, Airbus SAS, General Electric Company, Collins Aerospace, Defence Research & Development Organisation, Mahindra Aerospace Private Limited, and Adani Defence and Aerospace, among others.
The communication systems segment by offerings is gaining traction and anticipated to expand with an 8.3% CAGR through 2035.
India’s aerospace and defence companies are accelerating indigenisation through strategic joint ventures—like TASL and Dassault producing Rafale fuselages in Hyderabad—and expanding manufacturing, exports, and MRO capabilities, backed by government corridors and AI-Cyber R&D initiatives.
Key trends include indigenous manufacturing, drone capability expansion, rising private sector participation, AI integration in defense tech, and growing defense exports. Strategic partnerships and government support are transforming India into a global aerospace and defense hub.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Platform |
|
| Breakup by Offerings |
|
| Breakup by Service |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Small Business Bundle
Growth Bundle
Enterprise Bundle
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share