New Delhi, Dec. 22 -- India's focus on defence has sharpened steadily over the past few years. Operation Sindoor in May brought renewed attention to the country's defence capabilities and strengthened the outlook for domestic defence manufacturers.

After clocking 11% and 14% CAGR growth between FY19 and FY25, India's defence production and exports are projected to expand at a much faster 19-20% CAGR between FY25 and FY29.

Markets have clearly bought into this optimism. The Nifty India Defence Index has delivered a blistering 54% CAGR over the past five years, far outpacing the broader Nifty 50's 13% CAGR over the same period.

Within the broader defence umbrella, drones have emerged as a key growth theme. The war in Ukraine has undersco...