With the Government’s Increased Defence Investment, HAL, BHEL, and BEL Are Poised for Significant Growth in 2025
- Indian government is increasing defence budget by 30% in the upcoming budget.
- BHEL, HAL, and BEL poised for exponential growth with the new allocations.
- HAL’s LCA Tejas and Light Utility Helicopters (LUH) projects move forward.
- BHEL leading the charge with the highest order book for 2025.
As India continues its push to strengthen its defence capabilities, the government is set to allocate an additional 30% to the defence sector in the upcoming budget, providing a significant boost to companies involved in defence manufacturing. With this increase, the total defence budget is expected to rise from Rs 6.30 lakh crore in fiscal year 2024-25 to Rs 8.5 lakh crore in 2025. According to experts, this is the perfect time to invest in India’s ‘Make In India’ initiative, which aims to make India self-reliant in defence production.
BHEL’s Role in Expanding ‘Make in India’
Bharat Heavy Electricals Ltd. (BHEL), India’s largest power generation equipment manufacturer, is poised for substantial growth, thanks to the government’s focus on ‘Make in India’ and its strong presence in the defence sector. BHEL is not only expanding its footprint in power and thermal sectors but is also making significant strides in aerospace, defence, and oil & gas. Recently, the company secured orders for electric buses and battery storage systems, while its plans to partner with global firms for local manufacturing will further propel its expansion into new industries.
HAL Gears Up for Key Defence Milestones in 2025
Hindustan Aeronautics Limited (HAL) is preparing for significant advancements in its LCA Tejas and helicopter projects as it ramps up production for 2025. With two LCA Tejas assembly lines in Bengaluru and a third in Nashik, HAL is set to produce eight aircraft annually at each facility. A senior HAL official, speaking to Marksmen Daily on the condition of anonymity, confirmed that the first LCA Tejas from the Nashik plant is expected to roll out this year.
In Bengaluru, the first LCA Mk-1A is already in production and undergoing trials, with plans for its participation in Aero India 2025, starting February 10. HAL is also close to finalizing a contract to supply Light Utility Helicopters (LUH) to the Indian Army and Air Force, aimed at replacing the aging Cheetah and Chetak fleets. These efforts align with India’s push for self-reliance in defence manufacturing under the ‘Make in India’ initiative.
Order Books for 2025: Who’s Leading the Charge?
As the defence sector grows with increased budget allocations, companies like BHEL, HAL, and BEL are seeing record-breaking order books for 2025. According to Marksmen Daily’s findings:
- BHEL leads with an order book of Rs 1.6 lakh crore.
- HAL follows closely with Rs 95,000 crore in orders.
- BEL has secured orders worth Rs 75,000 crore.
Marksmen View
The anticipated budget announcement is expected to further boost these numbers, positioning these companies for explosive growth in the coming year. With these developments, 2025 is shaping up to be a year of significant transformation for India’s defence sector, supported by strategic investments, expanding capabilities, and a strong push for self-reliance.
