Reason Why Defence Sector Is Booming | Buy On Dips Defence Stock | Make In India |

Описание: War is not good for anyone, but Weapons do provide security in an uncertain world. And defence stocks can provide stability in your portfolio.

Defence budget –

2020–2021
The allocation for defence during the fiscal year 2020–2021 stood at ₹471,378 crore (equivalent to ₹5.5 trillion or US$69 billion in 2023).[9] This amounted to an increase of nearly 9%.

2021–2022
The allocation for defence during the fiscal year 2021–2022 was ₹478,196 crore (equivalent to ₹5.3 trillion or US$67 billion in 2023), an increase of 1% over the previous year.

2022–2023
The allocation for defence during the fiscal year 2022–2023 stood at ₹525,166 crore (equivalent to ₹5.5 trillion or US$69 billion in 2023), an increase of nearly 10% over the previous year.

2023–2024
The defence expenditure for fiscal year 2023–2024 stood at ₹593,538 crore (US$74 billion).[14]

India changed the stance from import to make in India.
Make in India – A success towards Indian manufacturing companies


Impact

Prime Minister Narendra Modi and President Joe Biden have reaffirmed their unwavering commitment to strengthen and diversify the India-US Major Defence Partnership. This strategic alliance is set to enter uncharted territories, marked by expanded cooperation in cutting-edge domains such as space and artificial intelligence (AI), alongside an accelerated collaboration in the defence industry.
One of the most significant milestones in this partnership is the recent completion of the Congressional Notification process on August 29, 2023. This milestone paved the way for negotiations on a groundbreaking commercial agreement between GE Aerospace and Hindustan Aeronautical Limited (HAL). This agreement aims to manufacture GE F-414 jet engines within India’s borders. In a joint statement issued on Friday evening at the end of the bilateral talks, both leaders underscored their shared resolve to support this remarkable co-production and technology transfer proposal, emphasizing the importance of expeditious progress.

Furthermore, a second Master Ship Repair Agreement has been applauded by both sides, with the latest agreement signed by the US Navy and Mazgaon Dock Shipbuilders, Ltd., in August 2023. This agreement strengthens India’s position as a key hub for the maintenance and repair of forward-deployed US Navy assets, as well as other critical aircraft and vessels.

From import the stance was changed to manufacture in India under make in India and from manufacturing Now India exports to south east Asian countries.
India – export numbers
India exported defence items and technology worth a record Rs 13,000 crore in 2021-22, an impressive 54.1 per cent rise over the previous year, a top defence ministry official said on Friday.

Investing in stocks can be attractive to some investors for several reasons, but it's essential to understand that any investment carries risks, and you should conduct thorough research or consult a financial advisor before making any investment decisions. Here are some reasons why some investors may consider investing in defense stocks:

Steady Demand: Defense companies often have a stable and consistent demand for their products and services. Governments around the world allocate budgets for defense and national security, which can provide a reliable source of revenue for defense companies.

Government Contracts: stability Many defense companies secure contracts with government agencies, providing them with a guaranteed stream of income. These contracts can be long-term and substantial, offering financial.

Global Tensions: Increased global tensions or conflicts can drive governments to invest more in their defense capabilities. This can lead to increased spending on defense products and services, benefiting defense companies.

Political Stability: Government support is crucial for defense companies, and they tend to enjoy a stable regulatory environment due to their strategic importance.
Industry consolidation: The defense industry has seen consolidation over the years, leading to larger, more stable companies with diversified revenue streams. This can reduce the risk associated with investing in smaller, more specialized companies.

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