Shares of Defence companies rose by nearly 7% on Tuesday, 13 May, after Prime Minister Narendra Modi called for “Made in India” defence equipment in a national address on Monday following the pause in India-Pakistan military activity.

Bharat Electronics Ltd (BEL) shares rose 4.39% to an intraday high of Rs 337 on Tuesday.  Bharat Dynamics Ltd shares rose 6.56% to Rs 1,673. Shares of Hindustan Aeronautics and Solar Industries rose 3.9% and 2.24%, reaching intraday highs of Rs 4,617.1 and Rs 13,587, respectively.

In his statement on Monday, Prime Minister Modi stated that Operation Sindoor against Pakistan is far from done and that the time has come for ‘Made in India’ defensive equipment.

“India has showcased its excellence in new-age warfare. The time has come for ‘Made in India’ defence equipment,” he said.

The Prime Minister stated that India has adopted a zero-tolerance attitude towards terrorism.

His quest for indigenous defence capability coincides with a surge in India’s domestic defence output. In FY24, the country’s defence manufacturing reached Rs 1.27 lakh crore, a 174% increase from 2014-15. 

The Make in India initiative played a significant role in this growth. In the same fiscal year, defence exports reached a record Rs 21,083 crore, a thirty-fold increase over the previous decade. Shipments were sent to over 100 nations.

Air Marshal SB Deo (retired), former Vice Chief of the Indian Air Force, said that the push for defence self-reliance began in 2014, but the government’s stance has altered dramatically in recent years.  He cited successful indigenous programs such as the Akash missile and drone manufacture in Bengaluru as proof that India’s industrial base is capable of satisfying military needs.

India and Pakistan agreed to suspend military operations on Saturday, 10 May, beginning at 5 pm. On Monday, 12 May, the Director General of Military Operations (DGMO) discussed the situation.  

In his address, PM Modi stated that India will only discuss terrorism and Pakistan-occupied Kashmir (PoK) with Pakistan in the future.  “Water and blood cannot flow together,” he remarked, referring to the Indus Water Treaty, which remains in limbo following the terrorist attacks in Pahalgam.

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