通过卓越运营与供应链韧性提速航空航天与国防制造业发展

defence manufacturing throughoperational excellence and supplychain resilience June 2026 Foreword by PwC approximately 16 fold in order to meet the Viksit Bharat target of 25% of GDP. Aerospace and defence (A&D)manufacturing is uniquely positioned to be a catalyst in this leap—driving high-skill employment, deep-tech The policy architecture is firmly in place, anchored onAatmanirbharta,iDEX, PLI, Make-II, and the defence industrialcorridors. Demand is strong, with production touching a record high of₹1.54 lakh crore in FY25.2Yet, at the current This paper aims to contribute to the conversation around scaling A&D manufacturing through operational excellence and supply chain resilience. It offers data-driven diagnostics, practical transformation levers, and India-specific We believe India’s A&D sector can decisively shape the Viksit Bharat journey towardsAatmanirbharta. We hope thisreport empowers the defence manufacturing sector with the insights, frameworks, and conviction to act with the Dinesh AroraSanjay Dawar Advisory Leader, PwC India Message from ET 23 May 2026.4The numbers back this conviction. Defence exports reached a record₹38,424 crore in FY 2025–26—a 63% jumpover the previous year—while production crossed₹1.54 lakh crore. The next set of targets is already in sight—₹3 However, the sector stands at an inflection point. Recent global conflicts and supply chain disruptions have highlighted a fundamental reality: modern wars are won as much in factories as on the battlefield, by industries that this. What it needs now, is the ability to deliver consistently at world-class quality, cost, and pace. Current orderbook-to-revenue ratios across several DPSUs suggest at least 5–10 years of work to clear the backlog. Closing thisgap will be the real test of this decade. Nishant Kashyap Consulting Editor, ET Manufacturing Table of contents 01.Introduction5 Evolution of the global and Indian A&D manufacturing sector6 02. 03.A&D a key contributor in the Viksit Bharat agenda 05.Execution challenges across value chain impacting timely and 06.Priorities for manufacturing and supply chains for defence in India 08.How PwC can help Introduction materials, and capital escalate. Skilled labour shortages,strict regulatory framework, and increasing sustainabilityrequirements add to the complexity. have increased, output must improve significantly tosuccessfully fulfil the order book and exceed customerexpectations.Order book-to-revenue multiples rangefrom 1.71x to 6.88x, representing roughly 2 to 7 years enhancing quality) and throughput improvement(increase in production speed and volume withoutsacrificing standards) while establishing a resilient, self-sufficient supply chain are not just side projects. Theyare core enterprise capabilities essential to protecting excellence and building supply chain resilience in theA&D sector. By exploring relevant, need of the hourinterventions, we aim to empower industry leaders toenhance their capabilities, streamline processes, andunlock unprecedented value within their operations.Covering the full spectrum—from order receipt to order What strategic and structural operationalchanges across the value chain can help highest standards of product andservice quality? Given the strong demand outlook, how can supply chain in view of this growing demand? manufacturing sector Figure 1: Evolution of A&D industry over the last 100 years Multi-domain warfare •Great power rivalry resurges(US-China)•Emphasis on land/sea/air/cyberintegration•Tech introduced: Al in C2, quantumtech, autonomous systemsMulti-domainwarfare War on terror era •9/11 transforms global security•Intensified military actions in Asia•Tech introduced: UAVs (Predator,Reaper), IED counter measuresRise of terrorism Post cold-war shift •US military dominance•Tech supremacy and terrorism on rise•Tech introduced: Smart bombs, GPS-guidedmunitions, early C4ISR Reagan era & USSR fall •Massive US defense spend•USSR collapse & Gulf War•Tech introduced: Cruise missiles, GPS,early UAVs, real-time surveillance,CAD/CAM systems Cold war intensifies •Vietnam War & guerrilla tactics•Space race: militarisation begins•Tech introduced· Precision guided munitions,spy satellites, stealth aircraft (F-117) Early cold warCold-war period •Birth of nuclear deterrence (MAD)•Tech introduced: ICBMs, nuclearweapons, guided missiles, earlysatellites World War II •Total war & mass mobilisation •Strategic bombing•Tech introduced: Radar, jet engines, V-2rockets, atom bombs, code breakingmachines Interwar period •Rise of mechanised warfare•Tech introduced: Tanks, aircraftcarriers, radio comms, chemicalweaponsPeriod betweenWorld War I andWorld War II Figure 2: Evolution of A&D manufacturing through various industrial revolutions Source: PwC analysis This progression reshaped supply chains, workforce skills, quality systems, and the pace of innovation acrossthe sector. national security and driving innovatio