OmniScience Capital report identifies tectonic shift post Operation Sindoor; calls defence the next mega growth engine for India

Mumbai | 7 June 2025 — India’s defence sector is undergoing a paradigm shift, with capital expenditure expected to touch ₹64 lakh crore cumulatively by 2035, according to a new report by OmniScience Capital titled “Bharat Defence: A Turning Point.” The report cites Operation Sindoor as the critical inflection point in Bharat’s strategic doctrine, triggering an era of high-precision, software-integrated warfare that could transform both national security and industrial capability.

According to the report, Bharat’s defence production — which stood at ₹1.4 lakh crore in FY25 — is expected to more than double by FY29, crossing ₹3 lakh crore. This acceleration is being driven by a surge in government orders, increased private sector participation, and a shift towards export-led growth in defence equipment and systems.

Commenting on the findings, Dr. Vikas V. Gupta, CEO & Chief Investment Strategist at OmniScience Capital, said, “India’s defence sector is entering a phase of strategic depth and economic contribution. This is a national growth engine in the making — one that will demand discipline, innovation, and long-term thinking from policymakers, industry, and investors alike.”

The report highlights that government approvals in the past year alone include over ₹63,000 crore for Rafale Marine jets, ₹54,000 crore for various equipment, and ₹40,000 crore for ammunition. This, coupled with indigenous platforms like “Akashteer” and “Bharat Kavach,” underscores India’s evolving capability in integrated, real-time battle systems.

“In the next decade, India is likely to increase its defence expenditure to 3–4% of GDP, in line with global strategic trends,” the report states, adding that Bharat’s share in global defence exports could rise sharply, especially with the country setting an official export target of ₹50,000 crore by 2029. OmniScience analysts believe that number could be exceeded, given rising global confidence post-Operation Sindoor.

The report introduces the concept of Omni Defence — a broader strategic approach that includes cybersecurity, space, artificial intelligence, robotics, strategic minerals, energy, and logistics in addition to conventional warfare. It emphasizes the need for Bharat to build preparedness across the spectrum — from cyber and data infrastructure to nuclear and biological defence.

However, the report cautions against unchecked market exuberance. With listed defence sector companies trading at a median P/E of 57x and forward valuations remaining high, OmniScience advises investors to remain grounded and follow a scientific investing framework. “Look for capital multipliers — strong balance sheets, wide moats, and intrinsic value — not just momentum,” the report advises.

As India rises to become a $10 trillion economy by 2035, the report concludes, national security infrastructure must scale in parallel — not just to deter, but to dominate in the new age of geopolitical complexity.

Click to View Report : Operation Sindoor: An inflection point for Bharat’s Omni Defence Strategy