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September 16, 2025 | Gaurab Majumdar, Global Electronics AssociationEstimated reading time: 1 minute
With a defence budget of $82.05 billion (2025–26) and a massive $223 billion earmarked for aerospace and defence spending over the next decade, India is rapidly positioning itself as a major player in the global defence and aerospace market.
At the core of this transformation lies electronics, the unseen force powering advanced avionics, guided missile systems, radar and surveillance, secure communications, and space exploration. Electronics are the nerve center of every mission-critical system, whether it’s an air-launched cruise missile or a deep-space satellite. To support this evolution, the Global Electronics Association works closely with Indian stakeholders to align manufacturing practices with global reliability standards, drive workforce certification, and facilitate industry collaboration in high-reliability sectors.
The New Backbone of India’s Defence
The Indian aerospace and defence sector is shifting from buyer to builder. Key state-run enterprises such as Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), and BEML are leading this transformation. In FY 2022–23, these companies recorded significant production increases: HAL by 19%, BEL by 12%, BDL by 9%, and BEML by 8%, a clear reflection of expanding domestic capability.
According to industry projections:
- The EMS sector in defence and aerospace is growing at a CAGR of 32% (2021–26E)
- Electronics consumption in aerospace and defence is expected to reach $70–72 billion in the next decade
- The demand for aerospace and defence electronics is growing at a 38.1% CAGR, outpacing many civilian sectors
India is not just assembling imported subsystems; it is building complex systems, subsystems, and platforms with increasing domestic value addition. From PCBs and embedded systems to RF modules, power electronics, and cable harness assemblies, India’s electronic manufacturing ecosystem is being fortified to support this strategic expansion.
To continue reading this article, which originally appeared in the September 2025 edition of SMT007 Magazine, click here.
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