India's Military Industrial Complex: A $100-billion Opportunity
With India's defence budget set to cross $100 billion, here's a look at the companies that will create multibagger wealth in the medium term.
India boasts of the world’s third largest military.
At a force count of around 1.8 million, it is also one of the most professional and experienced armed forces on earth. With wars and conflicts fought and won in varied geographies and climates, the Indian Armed Forces have always been a beacon of hope and pride for a billion people.
What makes it crucial for India is the fact that it is flanked by two nuclear armed neighbors - who are in turn, in friendly terms with each other. That means the lives of around 2.8 billion people, in one of the most densely populated places on earth are at stake, if a conflict arises of a certain magnitude.
And this is exactly why the Indian government is bolstering its armed forces like never before.
The Indian Military Industrial Complex
For decades after independence, India’s defence industry consisted of only public sector units (PSUs) which were fully owned by the government. During this time, the indigenous industry was relegated to making the most basic of weaponry - albeit at poor quality - to fill the needs of the military. This included parts for rifles, bullets, vehicles, guns and some aerospace components of Russian origin, while Hindustan Aeronautics Limited (HAL) was successful in partially developing and manufacturing some trainer aircraft.
But that would change drastically in the years to come.
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