New Delhi, Sep 9 : India's defence export is estimated to grow at 18 per cent CAGR (compound annual growth rate) from FY24-FY30, driven by the 'Make in India' initiative and thrust on local manufacturing.

According to global investment firm Jefferies, which cited factors such as geopolitical tensions and the government's push to indigenisation the defence sector, opportunities are growing for Indian defence companies.

The report further said that the government is also building bilateral relations to promote exports in the global market.

Between FY24 to FY30 (estimated), the potential market opportunity for Indian defence companies is expected to rise at 14 per cent CAGR, the report stated.

'On one hand, the Indian government is emphasising indigenisation of defence. On the other hand, export of defence equipment is also being encouraged. This will increase the order inflow in the defence sector,' the report mentioned.

India's defence spending will double between FY24 and FY30. This will further push share prices of defence companies in the coming future.

Defence companies will get opportunities worth $90 billion to $100 billion in the Indian market in the next 5 to 6 years. In 2022, India's defence expenditure was 10 percent of the US expenditure and 27 percent of China's expenditure.

India is the second largest importer of defence equipment in the world. Country's share in the total arms imports in the world is 9 per cent.

India's defence exports have increased 14 times to $2.6 billion between FY 2017 and FY 2024.

India's export basket of defence products includes missiles, radars, naval systems, helicopters, and surveillance equipment.

Last week, in a huge boost to local defence manufacturing, the Centre approved 10 capital acquisition proposals amounting to Rs 1,44,716 crore, including for the modernisation of the Indian Army's tank fleet with a futuristic Main Battle Tank.

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, accorded Acceptance of Necessity (AoN) for 10 capital acquisition proposals amounting to Rs 1,44,716 crore.

Of the total cost, 99 per cent is from indigenous sources under the 'Buy (Indian)' and 'Buy (Indian-indigenously designed, developed and manufactured)' categories, the ministry said in a statement.

The move clears the path for the procurement of future-ready combat vehicles (FRCVs), air defence fire control radars, Dornier-228 aircraft, next-generation fast patrol and offshore patrol vessels.

/IANS