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Defence Industry in Action Mode


One industry that will be sure to do better this year as compared to last year is the defence industry. With the US budget being above $850 Bn and other countries like Japan and Germany raising budgets to the highest levels in recent years. Thus, this year the Military Industrial Complex will be thriving.


For this level of spending, there are justified reasons one of them being the two regional conflicts that with every passing day have a large global impact. Another reason is that since many of these countries have been supplying ammunition and weapon systems to Ukraine and Israel their inventories need to be restocked.


The major worry going forward would be that if China pursues a military action towards Taiwan post elections then the countries that Taiwan would depend on to defend might be short of stock.


Even a neutral country like India is increasing this spending to become a developed nation having a modern fleet is necessary. Other countries have risen to become new buyers of the industry.


Thus, it can be probably said that next decade or so this spending is going to rise as the underlying volatility in geopolitics remains high.


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