The arms industry saw a big increase in demand, reaching $597 billion in sales for the top 100 armament companies in 2022. This surge is due to the tensions caused by Russia's invasion of Ukraine. A report from the Stockholm International Peace Research Institute (SIPRI) revealed these numbers, emphasizing how global events affect the arms market.

Notably, Indian defense public sector undertakings (PSUs) such as Hindustan Aeronautics (HAL), Bharat Electronics (BEL), and Mazagon Docks (MDL) have secured positions among the top 100 arms-producing companies, a list largely dominated by formidable entities from the United States and China.

While the global demand for arms experienced a significant upswing, the top 100 armament companies saw a 3.5% decline in real-term revenues compared to 2021, as reported by the Stockholm International Peace Research Institute (SIPRI). This dip is attributed to production lagging behind the heightened demand for military hardware and services.

In the global rankings, Hindustan Aeronautics Limited (HAL) secured the 41st position with arms sales totaling $3.4 billion, while Bharat Electronics Limited (BEL) stood at 63rd with $1.9 billion, and Mazagon Docks Limited (MDL) held the 89th position with $1 billion in sales.

These rankings underscore the significant orders placed by the Indian armed forces, amounting to 14 lakhs. However, despite this, the combined sales of these three Indian companies constituted only 1% of the global arms sales totaling $597 billion in the past year.

These companies are expected to make more money soon. The Ministry of Defence gave the green light on November 30 to buy more military equipment, including 97 Tejas fighter jets and around 150 Prachand helicopters. This big deal is worth Rs 2.23 lakh crore and is meant to make the Indian armed forces stronger.

According to the official statement, “Defence Acquisition Council approves capital acquisition proposals worth Rs 2.23 lakh crore to enhance the operational capabilities of the Armed Forces 98 percent to be sourced from domestic industries in a major boost to ‘Aatmanirbharta’ in defence. Procurement of Light Combat Helicopters & Light Combat Aircraft Mk 1A from HAL gets a nod. Medium Range Anti-Ship Missiles for the surface platform of the Indian Navy accorded approval. Acquisition of Towed Gun System cleared to replace Indian Field Gun.”

Hindustan Aeronautics Limited (HAL) serves as the domestic supplier for the Tejas and Prachanda aircraft. In response to this news, HAL's shares closed 1.65% higher at Rs 2,382.30, experiencing an intra-day surge of over 4%, while Cochin Shipyard concluded nearly 4% higher at Rs 1,206 apiece on the BSE.

This development coincides with a crucial meeting scheduled to be chaired by Defence Minister Rajnath Singh. The project, estimated at around Rs 55,000 crore, is intended to augment the existing fleet of 83 Tejas jets.

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