India's Defence Capex Holds 0.5% GDP, Fuels Modernization & Export Growth

• India's defence capital spending is projected to remain at 0.5% of nominal GDP, consistent with historical trends.
• Defence capital expenditure (capex) is prioritized, expected to rise at a 17-18% CAGR over the medium term and 10% CAGR long term.
• India's defence and aerospace sector is undergoing a structural modernization cycle, driven by geopolitical conflicts and ageing military assets.
• Defence production has exceeded $17.6 billion, with a target of $36 billion by 2029, focusing on capability creation.
• Significant export opportunities exist due to global defence dynamics, with exports increasing fifteen-fold in eight years and aiming to double to Rs 500 billion in five years.

Why It Matters: India's defence spending shows long-term modernization and export potential.