InvestorQ : Can you tell me about the Rs.28,000 worth of orders to be given out by Defence Ministry. How will it impact stocks like HAL, Bharat Dynamics, Cochin Shipyards and others?
Dia Deshpande made post

Can you tell me about the Rs.28,000 worth of orders to be given out by Defence Ministry. How will it impact stocks like HAL, Bharat Dynamics, Cochin Shipyards and others?

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Sam Eswaran answered.
6 months ago
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In an example of extremely quick decision making, the Indian Defence Ministry has already approved the purchase of weapons and military equipment to the tune of Rs.28,000 crore over the next couple of years. This announcement assumes special significance as the border stand-off with China continues despite the best peace efforts from the Indian side.

For now, what matters is that this massive defence order spells good times for Indian defence companies. There is a reason to it. The salivating good news for the Indian defence manufacturing companies is that out of this total allocation, nearly Rs.27,000 crore will be allocated to acquiring defence equipment and weapons from domestic suppliers only.

This will be seen as a boost for the Atma Nirbhar plan laid out by the government last year. These orders will include an Airborne Early Warning Systems by DRDO for the Indian Air Force, next generation offshore patrol vessels for the Indian Navy and modular bridges for the Indian Army. All these are expected to be delivered by 2024.

Most Indian defence companies in the PSU segment will be the obvious beneficiaries as they will be the port of first call for any of these orders due to genuine security concerns. Such orders may be further farmed out by these PSU companies. The sum and substance is that all these defence companies will be kept busy over the next few years.

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