Budget 2021 Impact On Defence Sector: ICICI Securities Report

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.