Mumbai: Defense stocks saw a sharp rise on Tuesday, May 13, after Prime Minister Narendra Modi spoke about boosting ‘Made in India’ defense equipment. This came after a short pause in military action between India and Pakistan. PM Modi said India must now focus on making its own weapons and defense systems.
In his address on Monday, PM Modi said, “India has shown its strength in modern warfare. The time has come for ‘Made in India’ defense equipment.” He also said India will now only discuss terrorism and Pakistan-occupied Kashmir (PoK) with Pakistan, not any other issues.
Stock Market Response
Following PM Modi’s speech, many defense company shares jumped. Bharat Electronics Ltd (BEL) rose 4.39 per cent to Rs 337. Bharat Dynamics Ltd increased by 6.56 per cent to Rs 1,673. Hindustan Aeronautics climbed 3.9 per cent to Rs 4,617.1, and Solar Industries gained 2.24 per cent to Rs 13,587.
This rise in defense stocks shows investor confidence in India’s plan to build more weapons at home.
Big Jump in defense Production and Exports
India’s defense production has grown fast in recent years. Official data says production touched Rs 1.27 lakh crore in FY24, which is a big 174 per cent increase from 2014–15. defense exports also reached Rs 21,083 crore, with Indian products going to over 100 countries.
This growth is due to the government’s ‘Make in India’ push, which began in 2014. Retired Air Marshal SB Deo said India’s industry is now strong enough to make advanced weapons like missiles and drones.
Peace Pause, But Focus on Security
India and Pakistan agreed to pause military actions on May 10. Their army officers held talks on May 12. But PM Modi made it clear that India will not ignore terrorism. He said, “Water and blood cannot flow together,” showing his firm stand on national security.
