Knowledge Centre

Key Statistics

$ Billion*

Total Defence Budget (FY 2019-20)

$ Billion*

Capital Expenditure Allocation (FY 2019-20)

$ Billion*

Revenue Expenditure Allocation (FY 2019-20)


Growth in Expenditure in 2019-20 over 2018-19

Sector Snapshot

India maintains the second largest standing armed forces in the world by size, is the eighth largest spender on defence and the second largest importer of defence equipment (SIPRI, March 2019). Considering the size of Indian Defence Forces, and their modernisation needs, India has maintained a consistent defence spending pattern over the last decade to build defence capability, as also its defence industrial base.

8 – 10 % CAGR

Steady growth


Micro, Small and Medium Enterprises (MSMEs)


FDI permitted with Government approval

Defence Industrial Licences issued till end of FY 2018-19

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Latest News

  • Why India Cannot Ignore the F-35

    There have been comments recently on the MMRCA 2.0 acquisition program from the IAF top brass in light of changing economic calculations due to the coronavirus. It is worthwhile revisiting the contending aircraft in this contest, and its most noticeable absentee, the Lockheed Martin F-35. The F-35 is the only fighter jet available for purchase that is 5th generation and features stealth.

  • Will This be New Avtaar of HS 748 Avro in IAF

    While the Indian Air Force (IAF) wants to retire its Hawker Siddeley HS 748 turboprop Transport aircraft which was originally designed and initially produced by the British aircraft manufacturer Avro and later license-produced by the State-owned Hindustan Aeronautics Limited (HAL) but HAL has other plans to keep them going for next two decades.

  • Take On India's Fifth Generation Fighter Aircraft: AMCA

    When the Narendra Modi led Bharatiya Janata Party (BJP) came to power in 2014, there has been a shift in India’s Defence policy. Talks were going on inside the military to become self-reliant in the defence sector and how the new Modi government will address the issue.

  • Casting Doubt on Standards of Quality Control, Blaming Ordnance Factories Alone for Ammunition-Related Accidents Unfair

    The article Indian Army concerns over quality control, weekly ammunition – related accidents: Why Centre is pushing to corporatize OFB published on 23 May 2020 makes a number of sweeping statements which are incorrect and based on an understanding that is incomplete.

  • Third Aircraft Carrier Not Required As Military’s Focus Is On Land Borders: Sources

    India’s military engagements are focused on defending the Line of Actual Control (LAC) and dominate and prevent infiltration along the Line of Control (LoC), defence sources said questioning the need of a third aircraft carrier in the present circumstances and budgetary constraints.“The immediate requirement is to have a strong Army duly supported by a capable Air Force,” sources said.

  • There Will be no Delay in Supply of Rafale Jets to India: France

    There will be no delay in delivery of 36 Rafale jets to India as the timeline finalised for the supply of the fighter jets will be strictly respected, French Ambassador Emmanuel Lenain has said.France is reeling under swelling cases of coronavirus infection and there were apprehensions that the delivery of Rafale jets could be delayed due to the pandemic.

  • IAF Set to Raise Second LCA Squadron in Sulur

    The Indian Air Force is all set to raise its second squadron of the locally made light combat aircraft Tejas at Sulur in Tamil Nadu on May 27, people familiar with the development said. The IAF’s first Tejas squadron was raised at the Sulur air base in 2016 with two aircraft and more planes joined the fleet progressively.

  • Northrop Grumman Builds VLW Torpedo for U.S. Navy

    Northrop Grumman has successfully manufactured and tested the first industry-built Very Lightweight Torpedo for the U.S. Navy. The prototype torpedo is based on the Pennsylvania State University Applied Research Laboratory’s design that was distributed to defense industrial manufacturers in 2016.

  • The Pentagon’s Joint AI Center Wants to be Like Silicon Valley

    DarwinAI signed a partnership with Lockheed Martin, the world’s largest defense contractor, to work on explainable AI for solutions. Robotics company Sphero, the maker of BB-8 droid from Star Wars, spun out Company Six, which will focus on military and emergency medical applications.

  • Import Ban Not on Niche Tech: Army Vice Chief

    The Vice Chief of Indian Army, Lt Gen SK Saini, on Friday said the proposed ‘import ban’ list of military hardware will not restrict the forces to procure niche technologies from abroad.

  • Different Ammunition to be Major Area in Banned List of Defence Imports: Army

    One of the major areas of the negative list of imports for defence equipment being made will be different types of ammunition, the army’s Master General of Ordnance Lieutenant General S K Upadhyay said on Friday.“None of these ammunition are niche technologies.

  • US Navy Awards USD 26.7 Million Contract to BAE Systems for Modifications on KC-130J Aircraft

    BAE Systems has announced it was awarded a prime position on a USD 26.7 million task order by the US Navy to install, integrate and test the Large Aircraft Infrared Countermeasures system on KC-130J aircraft, the company said. The task order includes install, integration, and testing on KC-130J aerial transport and refueling aircraft.

  • DOD Awards USD 485 Million Contract to Lockheed Martin for Department of Defense

    Lockheed Martin has announced it has been awarded a USD 485,000,000 contract for Department of Defense and Foreign Military Sales (FMS) Sniper, Infrared Search and Track (IRST), the company said. The contract includes resources required for the management, fabrication, upgrade/retrofit, integration support and testing and shipping of its non-developmental item (NDI) Sniper Advanced Targeting Pods (ATP) System, NDI LANTIRN Fixed Image Navigation Set upgrades, and the NDI IRST system.

  • Boeing Selects Leonardo and Thales to Provide Systems for RAF

    Boeing has selected Leonardo and Thales to deliver a UK sovereign Defensive Aids System (DAS) to the British Royal Air Force (RAF).

  • Rajnath Singh Urges MSMEs to Make India Self-Reliant in the Defence Sector, Says Local Has to be Focal

    Terming the MSMEs as the backbone of the Indian economy, keeping them strong is one of the priorities of the government, says defence minister Rajnath Singh.

  • Raytheon contracted for National Advanced Surface to Air Missile System

    Raytheon Co., one of the world’s largest defense contractors, has been contracted by the U.S. Department of Defense for National Advanced Surface to Air Missile System, best known as NASAMS.The $92,3 million contract, announced Thursday by the Department of Defense, covers sustainment, maintenance, training, refurbishment, overhaul, engineering services and spares to support ongoing operations of the NASAMS.Work locations and funding will be determined with each order, with an estimated completion date of Feb.

  • Time to Revisit the 2017 Report Recommending Comprehensive Changes

    To expedite military reforms, as suggested recently by Finance Minister Nirmala Sitharaman, in times of severe recession generated by Covid-19, the Ministry of Defence (MoD) could do well to dust off a three-year-old management and services expert committee report.

  • Lockheed Martin Gains Aegis Ashore Contract Modification

    Lockheed Martin Rotary and Mission Systems is to continue performing engineering design support services in support of its Aegis Ashore FMS contract for Japan. Under a $22.3 million contract modification from the US Missile Defense Agency, to be completed by 31 July 2020, Lockheed Martin will maintain planning efforts and risk-reduction efforts required to meet the scheduled IOC date of 2025 for the Aegis Baseline 9C2 system in Japan.

  • HAL Entering Naval Utility Helicopters Competition Will Erode Navy’s Operational Capability

    One of the important policy reforms announcements done by the government in defence manufacturing in India last week was allowing foreign original equipment manufacturers (OEMs) to invest up to 74 per cent Foreign Direct Investment (FDI) in defence ventures in India.

  • Rajnath Singh Lauds Role Played by SIDM, MSMEs in Fight against COVID-19 -

    Raksha Mantri Shri Rajnath Singh has appreciated the role played by Society of Indian Defence Manufacturers (SIDM) and other Micro, Small and Medium Enterprises (MSMEs) in Nation’s fight against global Coronavirus (COVID-19) pandemic.

Industry Voice

Customer Testimonails
Mr. Baba N Kalyani Immediate Past President, SIDM Chairman & Managing Director Bharat Forge Ltd

Make in India is a priority, and defence is a focus sector. The role for SIDM in this context is cut out; it is to focus on indigenisation, R&D, connecting industry, academia and research institutions, in addition to facilitating participation of small and medium scale industries in defence production.

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Customer Testimonails
Mr. Jayant D. Patil President, SIDM and Member of Board & Whole - time Director (Defence, L&T-NxT)

SIDM has been created to act as the single point of contact between the industry and the government. SIDM endeavours to work closely with the government on policy related issues, collaborate with experts from the industry, academia, R&D institutions, and through this, bridge the gap between the armed forces and the industry. SIDM also provides thought leadership, facilitates dialogue, convergences and consensus to resolve policy related issues and aid the flagship Make in India campaign.

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