Veteran investor Ramesh Damani remains bullish on India's defence and pharmaceutical sectors and sees downstream petrochemicals as another promising investment theme after strong earnings from companies in the space.
Speaking on the sidelines of the NDTV Profit Business Leadership Awards in Mumbai, Damani named the three sectors when asked about the next “sunrise sectors” for investors.
“We continue to remain productive on the defence sector, on the pharma sector,” Damani said.
He was particularly upbeat about downstream petrochemicals following the recent corporate earnings. “I think some of the results that have come out so far, I'm very enthused by the downstream petrochemical sector,” he said, adding that some companies had reported “extremely stunning numbers”.
Damani added that, overall, it was “a good time to invest”.
Defence Production, Exports Hit Records
Damani's optimism on defence comes as India's indigenous manufacturing and exports continue to scale new highs.
Indigenous defence production rose to a record Rs 1.78 lakh crore in FY26 from Rs 46,429 crore in FY15. Defence exports surged to a record Rs 38,424 crore in FY26 from Rs 686 crore in FY14, with Indian defence products now reaching more than 80 countries.
The defence budget has also increased from Rs 2.53 lakh crore in 2013-14 to Rs 7.85 lakh crore in 2026-27.
Also Read: India Strengthening Defence, Space Capabilities: PM Modi In 'Mann Ki Baat'
Pharma Exports Rise, Petrochemicals Get Policy Push
India's pharmaceutical exports have more than doubled over the past decade, rising from around $14 billion in FY15 to about $31 billion in FY26, according to government data. Indian medicines now reach more than 200 countries.
The momentum continued into the new fiscal year. Drugs and pharmaceutical exports rose 7.12% year-on-year to $2.66 billion in April 2026 from $2.49 billion a year earlier, Commerce Ministry data showed.
In chemicals and petrochemicals, production of major products increased to 58.62 million tonnes in FY25 from 45.64 million tonnes in FY16, representing a compound annual growth rate of around 2.8%.
The sector is also getting a fresh policy push. The Union Budget 2026-27 proposed supporting states in setting up three dedicated Chemical Parks with plug-and-play infrastructure, aimed at strengthening domestic production and reducing import dependence.
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