Indian defence Public Sector Undertakings (PSUs) Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Mazagon Docks Limited (MDL) continue to be listed among the world's top 100 arms-producing companies, according to the latest report by the Stockholm International Peace Research Institute (SIPRI). However, these three companies together accounted for only 1.1% of global arms sales in the previous year.
The report, released on Monday, indicates a sharp rise in global arms revenues, reaching a record $679 billion in 2024, a 5.9% increase. This surge in demand is attributed to the conflicts in Ukraine and Gaza, escalating global and regional geopolitical tensions, and increasing military expenditures by various nations. Over the period spanning from 2015 to 2024, the revenues of the top 100 arms manufacturers have increased by 26%.
HAL, BEL, and MDL, all Defence Public Sector Undertakings (DPSUs), have demonstrated growth in arms revenue. HAL secured the 44th rank with $3.8 billion in arms sales, BEL was 58th with $2.4 billion, and MDL was 91st with $1.2 billion, marking an overall increase of 8.2%. In comparison, the combined arms revenues of the three Indian companies in the Top 100 increased to $6.7 billion, a 5.8% increase. Comparatively, the nine Chinese companies listed clocked $103 billion.
The top five companies in the list are Lockheed Martin, RTX (Raytheon), Northrop Grumman, BAE Systems (UK), and General Dynamics (US). The top 100 list is dominated by 39 US companies, accounting for $334 billion. China is next with eight companies totaling $88 billion.
Hindustan Aeronautics Limited (HAL), headquartered in Bengaluru, saw its arms revenues rise to $3.71 billion in 2023, a 6.9% increase from $3.47 billion the previous year, retaining its 43rd rank. HAL's revenues are mainly from manufacturing light combat aircraft and helicopters. Bharat Electronics Limited (BEL), also headquartered in Bengaluru, recorded $1.94 billion in 2023, a 0.5% increase from $1.93 billion in 2022, but its rank fell to 67 from 65. Mazagon Dock Shipbuilders Ltd (MDL), based in Mumbai, experienced a 12.4% growth in arms revenues, reaching $1.09 billion in 2023 from $0.97 billion in 2022, and its rank improved to 94 from 96.
The rise in arms sales globally is fueled by geopolitical tensions and the Russian invasion of Ukraine. This has led to increased demand for weapons and military services. The United States remains the top arms producer, with 51 companies contributing $354 billion in sales, representing 59% of the global total.
Despite the increase in global arms revenue, some industry leaders, such as Lockheed Martin and RTX, experienced declining revenues due to complex, multi-tiered supply chains. Smaller manufacturers have demonstrated greater agility in responding to demand.
