India’s Defence Market to Grow Rapidly by 2030, Says Jefferies Report
A recent report by Jefferies predicts that the Indian defence market will grow at a 14% annual rate from 2024 to 2030. This growth is driven by the government’s focus on self-reliance and export opportunities.
India’s defence spending is expected to double between FY24 and FY30, with the market worth USD 90-100 billion in the next 5-6 years. Despite being one of the top three countries in terms of defence spending, India’s expenditure in 2022 was only 10% of the U.S. and 27% of China’s spending.
The report also highlights that India’s defence exports could rise to USD 7 billion by 2030, with key markets including Italy, Egypt, the UAE, Bhutan, Ethiopia, and Saudi Arabia. The Middle East, accounting for 33% of global arms imports, offers significant opportunities for India, with Qatar and Saudi Arabia making up 52% of the region’s imports.
Doubts Revealed
Jefferies -: Jefferies is a global investment bank that provides financial services like research, trading, and investment banking. They analyze markets and make predictions about future trends.
Defence Market -: The defence market includes all the businesses and activities related to the production and sale of military equipment and services. This can include things like tanks, airplanes, and weapons.
Self-reliance -: Self-reliance means depending on oneself or one’s own country for things instead of relying on others. In this context, it means India wants to produce its own defence equipment instead of buying from other countries.
Export Opportunities -: Export opportunities refer to chances for a country to sell its products to other countries. Here, it means India has chances to sell its defence equipment to other countries.
USD -: USD stands for United States Dollar, which is the currency of the United States. It is often used in international trade and finance.
Defence Exports -: Defence exports are military products and services that a country sells to other countries. This can include things like weapons, vehicles, and technology.
Italy, Egypt, Saudi Arabia -: These are countries in Europe, Africa, and the Middle East, respectively. They are mentioned as key markets where India might sell its defence products.