Budget 2021 Impact On Defence Sector: ICICI Securities Report
Bharat Dynamics Ltd.’s Akash Weapon System, manufactured by the Defence Research and Development Organization, on display during the Aero India air show in Bengaluru. (Photographer: Dhiraj Singh/Bloomberg)  

Budget 2021 Impact On Defence Sector: ICICI Securities Report

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ICICI Securities Report

Key takeaway from defence capital expenditure (FY22) in Budget 2021 was approximately 18.8% increase in FY21RE vis-a-vis FY21BE.

Major contributor is navy (40% plus increase), followed by Indian Airforce (27% plus increase).

Army budget during the same period is nearly flat (up 2.5%) with 14% increase seen in construction.

FY22BE is largely similar to FY21RE; however, while Army witnessed 10% increase, Navy and IAF witnessed 11% and 3% reduction, respectively.

Biggest increase in Army’s budget (FY22BE over FY21RE) comes in the form of other equipment highlighting the possible increase in artillery, missiles, rockets (Pinaka), ammunitions.

Click on the attachment to read the full report:

ICICI Securities Defence Budget Update.pdf


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