Indian defence stocks have surged significantly, driven by global military spending boosts, including Germany’s new spending package and the EU’s €800 billion rearmament plan. Notable gains were seen in shares of Garden Reach Shipbuilders (up 20%), Mazagon Dock, and Cochin Shipyard, reflecting a broader recovery in the sector amid geopolitical tensions, particularly the war in Ukraine. Analysts highlight that Indian defence companies are increasingly positioned as attractive suppliers due to their robust manufacturing capabilities and cost-effectiveness, which are critical as European nations seek to bolster their defence. The rally in stocks signals a growing confidence in the Indian defence sector, with potential for significant future contract wins, further enhanced by a reported 32.5% increase in Indian defence exports last financial year. This trend underscores the strategic shift towards India as a key player in the global defence landscape.
