India's Aerospace And Defence Sector Enters High-Growth Phase: PwC

New Delhi, Jun 8 (KNN) India's aerospace and defence (A&D) sector is entering a high-growth phase driven by robust demand, rising exports and strong policy support, but execution capacity could emerge as the key challenge to sustaining momentum, according to a PricewaterhouseCoopers (PwC) India report released on Monday.
 
Report Highlights Strong Growth Prospects For A&D Sector
 
The study, titled 'Accelerating Aerospace and Defence Manufacturing through Operational Excellence and Supply Chain Resilience', was unveiled at the ET Aerospace & Defence Manufacturing Summit 2026 in Bengaluru.
 
According to the report, the A&D sector is expected to play a significant role in India's ambition of becoming a USD 30 trillion economy by 2047, supporting the substantial expansion of the country's manufacturing base.
 
Rising Order Books Create Execution Pressures
 
While domestic defence production reached a record Rs 1.54 lakh crore in FY25 and Indian defence products are now exported to nearly 100 countries, growing order books are placing increasing pressure on manufacturers' delivery capabilities.
 
The report noted that major defence manufacturers currently face order book-to-revenue multiples ranging between 1.71 times and 6.88 times, translating into execution backlogs of two to seven years. In certain segments, existing orders could take between five and ten years to fulfil.
 
PwC India said the sector's primary challenge has shifted from generating demand to executing projects efficiently and at scale.
 
Dinesh Arora, Partner and Leader Advisory, PwC India, said companies will need to move beyond incremental capacity expansion and strengthen planning, shopfloor productivity, supplier coordination and digital integration to meet growing demand.
 
Six Priority Areas Identified For Sectoral Growth
 
To address execution bottlenecks, the report identified six priority areas for transformation: supply chain efficiency, operational excellence, planning and governance, research and development acceleration, workforce productivity and digital integration.
 
According to the study, strengthening these capabilities can help manufacturers improve productivity, enhance supply chain resilience, reduce rework and achieve globally competitive delivery standards.
 
Digital Integration Key To Future Competitiveness
 
Captain Vishal Kanwar, Aerospace, Defence and Space Leader, PwC India, said the sector's next phase of growth will depend on its ability to execute projects with consistency, speed and precision while scaling operations.
 
He noted that companies investing in modernised operations, stronger planning systems and digitally connected supply chains would be better positioned to convert current order pipelines into timely and high-quality output.
 
The report concludes that operational excellence and supply chain resilience will be critical for transforming India's aerospace and defence manufacturing sector into a globally competitive growth engine.
 
(KNN Bureau)