homebusiness NewsIndian government aims for even more ambitious $77 billion spending in defence sector, says Paras Defence
Indian government aims for even more ambitious $77 billion spending in defence sector, says Paras Defence
Commenting on India's defence budget in comparison to global peers, Mahajan acknowledged the need for an increase to secure borders effectively. He pointed out, "A lot of countries have a much higher defence budget than we do, but we need to up that."
Amit Mahajan, the Director-Technical & R&D at Paras Defence and Space Tech, expressed optimism about the Indian government's commitment to boosting the nation's defence capabilities, in a recent interview with CNBC-TV18. Mahajan disclosed that the government could be planning to allocate an even more substantial budget of $77 billion to the defence sector, emphasising the tremendous opportunities this presents for Indian industries.
Mahajan said, "There is a big thrust given on the development part where we are doing complete development all by ourselves. The $77 billion value will be conservative, not aggressive at all."
He further said that this presents a massive opportunity for Indian companies, particularly for those with a focus on Indigenous Design and Development Manufacturing (IDDM), where Paras Defence has a distinguished track record spanning several decades.
"We have been an IDDM company for the last so many decades. All those companies which have been IDDM will benefit largely from these initiatives," Mahajan added, underscoring the potential windfall for domestic companies involved in defence manufacturing.
Expressing confidence in the trajectory of the defence sector, Mahajan stated, "Defence as a space is going to do well, looking at all the indigenization policies, Make In India, and Aatmanirbhar Bharat initiatives by the government." He predicted that this growth momentum would persist for the next 5-10 years, driven by the government's strategic focus on indigenous development and manufacturing.
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Anticipating strong revenue and profit growth, Mahajan confidently asserted, "We are confident of exhibiting strong revenue and profit growth."
Commenting on India's defence budget in comparison to global peers, Mahajan acknowledged the need for an increase to secure borders effectively. He pointed out, "A lot of countries have a much higher defence budget than we do, but we need to up that."
Paras Defence, aiming for niche areas, has set a growth target of 40% for FY24.
When asked about the segments driving this growth, Mahajan detailed, "About 50% would be coming in from optics and optronics systems, and 50% from defence engineering, which covers defence electronics, electromagnetic pulse, and heavy engineering."
Paras Defence and Space Tech, headquartered in Nerul, Navi Mumbai, India, currently boasts a market capitalization of Rs 3,076 crore, positioning itself as a key player in India's rapidly evolving defence landscape. With the government's increased focus on defence and indigenous manufacturing, the company is poised for significant expansion and success in the coming years.
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