India’s defence sector is poised for a healthy growth in FY26 with entities operating in the segment expected to clock revenue expansion of 15-17 per cent, according to an analysis by rating agency ICRA. The growth momentum, it added, is primarily driven by strong execution progress on the back of a robust order book position, with order book/operating income (OB/OI) ratio at 4.4 times as of FY2025 end. Further, ICRA has also assigned a positive outlook to the sector on the back of government’s sustained budgetary outlay and policy support for defence. Expenditure on defence procurement from domestic vendors has increased from 61 per cent in FY2017 to about 75 per cent in FY2025. Meanwhile, it added, exports have grown by more than 15 times and at a healthy CAGR of 41 per cent to Rs 23,622 crore during FY2017-FY2025 period. While the land and ICT-based segments are expected to see increased private sector participation, per the ICRA report, the Defence Public Sector Undertakings (DPSUs) continue their dominance in the naval, aerospace and armaments segments. (ICE NEW DELHI)

Fonte notizia: Financial Express