Goldman Sachs has adopted an optimistic stance on India’s aerospace and defence sector, emphasizing significant export opportunities and a positive change in the industry's environment. With the government targeting to increase defense exports to over Rs. 50,000 crore (US$ 5.63 billion) by FY29 from ₹. In FY24, 23,600 crore (US$ 2.66 billion) has led the brokerage to rank private sector firms above their public sector counterparts. Its leading investment choices feature Solar Industries, Bharat Electronics, Data Patterns, and PTC Industries. Concurrently, Bharat Dynamics has been rated as Sell because of margin strains and restricted earnings outlook. The Nifty Defence index has risen almost 23% in CY25, compared to a slight 5% increase in the Nifty 50, bolstered by advances of up to 38% in certain defence stocks. Goldman Sachs forecasts that private defense companies will achieve a 32% compound annual growth in earnings per share from FY25 to FY28, in contrast to 13% for public sector entities, fueled by global supply chain connections, the integration of advanced technologies such as AI-driven systems and UAVs, and a growing Total Addressable Market anticipated to surpass Rs. 10,00,000 crore (US$ 112 billion) during the upcoming 20 years. Although private entities encounter increased working capital requirements, the brokerage sees them as more well-positioned to seize long-term opportunities in exports and indigenisation, even with potential risks from policy changes and fluctuations in global demand.