Defence ETFs: Top Defence Index Funds in India (2026)
List of Best Defence ETFs in India 2026
Defence ETF Stock Screener
Defence ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape
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@tickertapetickertapeShowing 1 - 2 of 2 results
| NameStocks (2)↓ | ↓Sub-SectorSub-Sector↓ | ↓Market CapMarket Cap↓ | ↓Close PriceClose Price↓ | ↓PE RatioPE Ratio↓ | ↓1D Return1D Return↓ | ↓1M Return1M Return↓ | ↓6M Return6M Return↓ | ↓1Y Return1Y Return↓ | ↓PB RatioPB Ratio↓ | ↓Return on EquityReturn on Equity↓ | ↓ROCEROCE↓ | ↓Dividend YieldDiv Yield↓ | ↓Debt to EquityDebt to Equity↓ | ↓Volatility vs NiftyVolatility vs Nifty↓ | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. | Groww Nifty India Defence ETFGROWWDEFNC | EquityEquity | 51.0151.01 | 88.9088.90 | -- | -1.80-1.80 | -3.13-3.13 | -2.95-2.95 | 12.4612.46 | -- | -- | -- | -- | -- | 1.701.70 | |
| 2. | Motilal Oswal Nifty India Defence ETFMODEFENCE | EquityEquity | 7.337.33 | 97.6997.69 | -- | -1.40-1.40 | -3.03-3.03 | -2.77-2.77 | 12.7812.78 | -- | -- | -- | -- | -- | 1.681.68 |
Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.
Union Budget 2026-27 Allocations Related to the Defence Sector
Union Budget 2026–27 continued the government’s focus on strengthening national defence capabilities through sustained funding, modernisation priorities, and investments in strategic technologies while maintaining fiscal prudence.
- Overall defence outlay: The total budget for defence in FY 2026–27 was set at ₹6 lakh crore+ (comprising both revenue and capital components), underlining sustained investment in defence capabilities.
- Capital expenditure focus: A notable portion of the defence budget was allocated to capital expenditure, which supports the procurement of modern weapons systems, aircraft, naval vessels, armoured platforms, and critical defence infrastructure. This capital push aligns with ongoing modernisation agendas.
- Indigenisation and domestic production: The Budget reiterated support for Atmanirbhar Bharat defence manufacturing, encouraging greater participation of Indian firms (including MSMEs), improved technology partnerships, and supply chain integration with domestic industries. Schemes that promote localisation and technology transfer continue to be emphasised in budgetary planning.
Overview of Top Defence ETFs in India
Motilal Oswal Nifty India Defence ETF
Motilal Oswal Nifty India Defence ETF tracks the Nifty India Defence Index, providing exposure to companies engaged in defence manufacturing, aerospace, electronics, and strategic equipment. The ETF reflects India’s growing defence production ecosystem, supported by rising government spending, export expansion and the push for indigenisation under Make in India initiatives.
Groww Nifty India Defence ETF
Groww Nifty India Defence ETF replicates the Nifty India Defence Index, providing diversified access to leading defence and aerospace companies. It captures trends such as increasing domestic procurement, higher defence exports and multi-year order pipelines across public and private manufacturers, aligning with India’s focus on strengthening local defence capabilities.
What are Defence ETFs?
Defence ETFs invest in companies that operate in aerospace, defence manufacturing and related technologies. They track an index that includes firms supplying equipment, systems, and services to the defence and security sectors. These ETFs offer diversified exposure to defence-focused businesses through a single traded unit.
How to Invest in Defence ETFs?
Investing in Defence ETFs in India using Tickertape is a straightforward process. Tickertape is a powerful stock analysis and screening tool that helps you make informed investment decisions. Here’s how you can use Tickertape to invest in Defence ETFs:
- Sign Up and Log In: You can create an account on the Tickertape or log in if you already have one.
- Search for Defence ETFs: Go to Tickertape Stock Screener and search for the ‘Defence ETF’.
- Use Filters: You can apply over 200 filters to get stocks sorted based on criteria like market cap, P/E ratio, and more to create Defence ETFs list.
- Analyse Stock Data: Tickertape provides comprehensive data on each stock, including financials, performance metrics, future projections, red flags, and more. You can review this data to assess each company’s health and potential in depth.
- Add to Watchlist: You may keep track of potential investments by adding them to your watchlist.
- Invest Through Your Broker: Once you’ve decided on a stock, you can place a buy order through your brokerage account linked to Tickertape.
You can stay updated with each of your favourite stocks’ alerts and announcements with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!
Advantages of Investing in Defence ETFs in India
Focused Exposure
Production Growth
Export Exposure
Recent Performance
Receive real-time market alerts for timely decisions
Monitor your portfolio from the palm of your hands
Watchlist stocks and mutual funds to stay updated
Risks of Investing in Defence ETFs in India
Sector Concentration
Policy Dependence
Tracking Difference
Turnover Risk
Factors to Consider Before Investing in Defence ETFs
Defence Spending
Export Orders
Domestic Production
Index Caps
Conclusion
Defence ETFs offer a way to track the performance of companies participating in India’s growing defence ecosystem, capturing trends in increasing domestic production, export growth, and policy support for indigenisation. Their performance reflects broader industry dynamics rather than individual stock moves. To analyse and compare different defence-linked ETFs using detailed metrics, sector filters, and historical data, investors can explore the Tickertape ETF Screener, which streamlines research across funds with industry context and performance insights.
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Frequently Asked Questions on Defence ETFs
What are defence sector ETFs?
Defense sector ETFs are exchange-traded funds that track indices comprising companies involved in defence manufacturing, aerospace, electronics, technology and related services. They provide listed exposure to India’s defence ecosystem through a single fund.What are the best defence sector ETFs?
As per 19th October, 2026, the following are the best defence sector ETFs in India:Disclaimer: The above defense ETFs list in India is for educational purposes only and should not be considered investment advice.
Is it worth investing in defence sector ETFs?
A defence ETF in India reflects factors such as defence production, exports, government procurement and order flows. Its performance also depends on index composition, company valuations and execution across underlying defence businesses.Disclaimer: This is for informational purposes only and does not constitute any investment advice.
Are defence sector ETFs suitable for long-term investors?
A defense stock ETF follows listed companies exposed to multi-year themes such as indigenisation, procurement cycles and manufacturing expansion. Suitability depends on individual goals, time horizon and tolerance for sector concentration and volatility.Disclaimer: This is not investment advice. Investors should assess their own financial circumstances before making decisions.
How do defence ETFs perform during war or geopolitical conflict?
A defense ETF can react to geopolitical developments through changes in sentiment, defence spending expectations and procurement priorities. However, actual performance also depends on valuations, earnings, order execution and broader market conditions.Disclaimer: Market behaviour during geopolitical events can vary widely. This response is for informational purposes only.
