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Is the Rafale Deal a Sign of a Turnaround in this Sector?
Oct 10, 2019

India's military spending as a percentage of GDP was at 2.4% of GDP in 2018.

This is low compared to the big spenders like Saudi Arabia, Israel, Russia, and the United States.

For long, the Indian military was focused on the strength of its personnel rather than the equipment that they had at hand.

However, recent government policy changes hint at this number increasing in the coming years. The changes are aimed at modernising weapons and reducing imports.

The recent Rafale procurement is a step in the right direction.

Going forward, we can expect a substantial increase in India's military spend. The opportunity for the sector is huge. Two of my 7 stocks to buy cater to this segment.

I believe these two stocks will be big beneficiaries of the Modi government's increased focus on defense.

Data Source: SIPRI, Forbes

*Data as on CY2018

This Chart Of The Day was published in The 5 Minute WrapUp - The One Stock I Like in this Market

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