3 Indian Defense PSUs in World's top 100 arms producing companies as per SIPRI report

In 2022, the world saw a significant spike in arms and military services sales, reaching a staggering $597 billion. This increase was largely driven by Russia's invasion of Ukraine and the resulting tensions across the globe.

 

 

 

According to the Stockholm International Peace Research Institute's (SIPRI) report, the arms industry's sales rose by 3.5% in real terms, marking the first increase since 2018.

 

The United States maintained its position as the top arms producer, with its 51 companies contributing $354 billion in sales, accounting for 59% of the global total. China's 12 companies followed closely behind, with sales of $105 billion, making up 18% of the global total.

The top five companies in terms of sales were all based in the US, including Lockheed Martin with $60 billion, Raytheon with $40 billion, Northrop Grumman with $33 billion, Boeing with $29 billion, and General Dynamics with $27 billion.

 

These figures highlight the significant role that the US plays in the global arms market and the continued demand for weapons worldwide.

 

According to the report, the rise in arms sales can be attributed largely to the ongoing conflict in Ukraine. This has prompted several nations to ramp up their military expenditures.

Nan Tian, a researcher at SIPRI, stated that the situation in Ukraine has been a defining moment for the international arms market.

 

It has emphasized the significance of having well-equipped and modern armed forces, leading to a considerable surge in the demand for weapons and military services.

Additionally, the report revealed that the arms industry is becoming increasingly concentrated, with the top 100 companies accounting for a staggering 85 per cent of global arms sales in 2022.

 

Notably, Indian defence public sector undertakings (PSUs) such as Hindustan Aeronautics (HAL), Bharat Electronics (BEL), and Mazagon Docks (MDL) have also made it to this list of top 100 arms-producing companies. 

 

Last year, HAL, BEL, and MDL all made significant strides in the global arms market. HAL secured the 41st spot with a whopping $3.4 billion in sales, while BEL followed closely behind at 63rd with $1.9 billion. Even MDL, coming in at 89th, managed to secure a respectable $1 billion in sales.

 

These impressive numbers were largely due to the massive orders placed by the Indian armed forces, which boasts a strong 14-lakh personnel. However, despite their notable achievements, the combined sales of these three companies only accounted for a mere 1% of the staggering $597 billion global arms market.