The global defence industry witnessed a historic high in revenues during 2024, even as the fortunes of its major players diverged sharply. According to the latest data from the Stockholm International Peace Research Institute (SIPRI), worldwide earnings from arms sales soared to an unprecedented $679 billion. This marks a significant 5.9% increase from the previous year, fueled by persistent international conflicts and heightened military spending.
India's Defence PSUs Post Impressive Growth
Within this booming market, India's state-owned defence giants made remarkable strides. While the nation's overall presence on the global stage is still developing, its growth trajectory in 2024 was pronounced. Three key public sector undertakings (PSUs)—Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Mazagon Dock Shipbuilders Limited (MDL)—collectively achieved a robust 8.2% growth in revenue. Their combined earnings reached $7.5 billion, signalling a strengthening domestic industrial base and successful execution of key projects.
Contrasting Fortunes: China's Struggle in the Arms Trade
In a striking contrast, Chinese defence companies faced headwinds and struggled to maintain momentum. The SIPRI report indicates a decline in their revenues, a shift attributed to several complex factors. These include increasing international scrutiny and restrictions on technology transfers, internal economic pressures, and perhaps a market saturation for certain export lines. This downturn for China occurs alongside India's surge, highlighting a notable recalibration within the Asian defence manufacturing landscape.
Drivers of the Global Arms Boom
The record-breaking global revenue figure of $679 billion did not emerge in a vacuum. Analysts point to a potent mix of geopolitical triggers that have compelled nations to bolster their militaries:
- Ongoing Conflicts: The protracted war in Ukraine and the intense hostilities in Gaza have created sustained demand for ammunition, replacement systems, and advanced weaponry.
- Great-Power Rivalries: Strategic competition between major nations, particularly in the Indo-Pacific and Europe, has accelerated military modernization programs.
- Widespread Rearmament: A wave of increased defence spending is evident across Europe and parts of Asia, as countries seek to enhance their sovereign security postures in an unstable world.
The data, released by SIPRI on December 02, 2025, underscores a world investing heavily in its security apparatus. For India, the performance of its defence PSUs offers a promising glimpse into the potential of its 'Make in India' initiative in the critical defence sector, even as it navigates a complex and competitive international environment.
