Bharat Electronics Ltd (BEL) shares rose by ₹2.70 or 0.86 per cent to ₹316.80 as of 10.42 am IST today, as investors respond positively to recent defence sector growth forecasts.

According to a recent expert analysis from PwC’s Aerospace, Defense and Space practice, India plans to increase its defence spending from the current 1.9 per cent of GDP to approximately 4 per cent by 2047. The report, presented by Captain Vishal Kanwar, Managing Director at PwC India, highlights significant growth opportunities for major defence public sector undertakings (DPSUs) including Bharat Electronics.

Captain Kanwar emphasised that India aims to transform into the third-largest global defense spender following the US and China, with plans to boost defense exports to ₹1.5 trillion by 2047. This strategic shift includes increasing modernisation allocation from the current 22 per cent to 40 per cent of the defence budget.

Experts noted that India’s defence exports have shown remarkable growth with nearly 100 per cent CAGR for private companies over the past three years. Government initiatives like the Defence Production and Export Promotion Policy (DPEPP) and ‘Make in India’ are positioning India as a credible exporter of cost-effective defence equipment.

As a key player in India’s defence electronics sector, BEL is well-positioned to benefit from this anticipated expansion in defence spending and the government’s push toward greater indigenisation of defence manufacturing.

Published on May 2, 2025