**India Defence Sector Outlook: FY27** Expectations are set for a sharp increase in India’s defence budget in **FY27**. This potential hike aims to extend the government's strategic push for indigenisation and self-reliance in defence manufacturing. The sector is currently witnessing strong capital expenditure momentum. Growth is being further accelerated by rising export volumes and record-high order inflows across the industry. Based on this positive macro backdrop, **HAL**, **BEL**, and **Data Patterns** emerge as the top sectoral picks to ride the ongoing structural uptrend.