As defence orders surge, can manufacturers keep pace? A new PwC study warns that execution bottlenecks could delay deliveries for years to come.
India’s aerospace and defence (A&D) industry is experiencing strong growth driven by rising domestic demand, expanding exports and government support, but execution constraints may emerge as a major obstacle to sustaining that momentum, according to a new study by PwC India.
The report, titled Accelerating Aerospace and Defence Manufacturing through Operational Excellence and Supply Chain Resilience, was released at an event in Bengaluru on June 8, 2026. It highlights growing concerns that large order books could strain production and delivery capabilities across the sector.
According to the study, India’s defence manufacturing industry has reached a critical stage where execution capacity, rather than demand generation, is becoming the primary challenge. The country currently exports defence products to nearly 100 nations, while domestic defence production reached a record ₹1.54 trillion in FY25.
However, the report notes that major manufacturers are carrying substantial order backlogs, with order book-to-revenue multiples ranging from 1.71 to 6.88 times. Existing commitments represent execution backlogs of between two and seven years, while some segments may require as long as five to ten years to fulfil current orders.
“India has the opportunity. Now it must build the execution engine to match it,” said Dinesh Arora, Partner and Leader Advisory at PwC India. He said companies will need to strengthen planning, productivity, supplier coordination and digital integration to manage expanding order pipelines effectively.
From an electronics manufacturing perspective, the findings underscore the growing importance of resilient supply chains, advanced production systems and digital technologies in defence production. Defence electronics, avionics, sensors, communication systems and embedded technologies are expected to see increased demand as production scales up.
To address capacity constraints, the study identifies six priorities: supply-chain efficiency, operational excellence, planning and governance, research and development, workforce productivity, and digital integration. According to Captain Vishal Kanwar, companies that improve these capabilities will be better positioned to convert expanding order books into timely and competitive deliveries.
