Public administration, defence and security

Stratum 7 · Apex

Public administration, defence and security

Public administration raises taxes and borrowing and turns them into law, order, defence, regulation and public services, buying heavily from contractors along the way. General government spending is the largest single block of demand in most economies, averaging about 43% of GDP across OECD countries⁵. Its most comparable worldwide slice, military spending, reached a record US$ 2,887 billion in 2025, 2.5% of world GDP, with the US alone accounting for 33% (SIPRI).¹

India. India was the world's fifth-largest military spender in 2025 at US$ 92.1 billion¹, and its 2026-27 Union Budget gives defence a record ₹7.85 lakh crore, 14.67% of central government spending, including ₹2.19 lakh crore of capital outlay². Total central spending is budgeted at ₹53.5 lakh crore, of which ₹12.2 lakh crore is capital expenditure, a large order book for construction, defence and digital contractors (budget estimates)³.

Where ₹100 of public administration, defence and security output goes

Where ₹100 of public administration, defence and security output goes Every rupee of sales is paid out to someone along the chain. This splits ₹100 of output by who finally receives it, so you can see how exposed the industry is to commodity, chemical and energy prices. Commodities ₹1.4 Chemicals…

Price links with supplier industries

Price links with supplier industries How the industries this one buys from shape its prices: the share of its costs they make up, and how their prices have moved together. Tap a row for the charts. Hover or tap ? for what each measure means. Supplier industry Cost share Raw-material mix…

Follow one offering through the chain

Follow one offering through the chain 7 Example story · 6 steps · India Running India's 2024 general election Follow the world's largest election from the law and the voting machines to school booths, police and the count. 1 / 6 · Revenue, borrowing and accountability Parliament writes the rules…

Buys directly from

Buys directly from Aerospace and defence Construction and infrastructure Healthcare services Education and research Finance: banking, insurance, markets Software and IT services Telecommunications Transport and logistics Water and sanitation Waste and recycling Depends on through its suppliers…

Value chain, from upstream to the customer

Value chain, from upstream to the customer Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Revenue, borrowing and accountability Tax and customs authorities 5 · Chokepoint Assess and collect income tax, GST and customs duties that…

What the whole chain draws on

What the whole chain draws on Every commodity, chemical and energy tile named by the enterprises above; ×n shows how many of them depend on it. Open any tile for its full detail. Commodities (11) Oil Crude oil ×3 St Steel ×2 Ti Titanium REE Rare earths Al Aluminium W Tungsten Ga Gallium H₂O Water…

Chokepoints and risks

Chokepoints and risks Military spending has risen for 11 straight years to US$ 2,887 billion, crowding other budgets as geopolitical tension persists 1 . India depends on imports for many key weapons systems and on a few global suppliers of engines, titanium and rare earth magnets. Single national…

Sources

Sources Trends in World Military Expenditure, 2025 SIPRI, 2026 Ministry of Defence allocated an all-time high of Rs 7.85 lakh crore in Union Budget 2026-27 Press Information Bureau, Ministry of Defence, 2026 Summary of Union Budget 2026-27 Press Information Bureau, Government of India, 2026 Fiscal…

Relationship cards

• Construction and infrastructure: Government is construction's largest client: it plans, funds and approves most roads, railways, water networks and military works, so public capital budgets set much of the order book. The reverse flow is small, but permits, land and payment discipline from public agencies decide how fast that order book turns into revenue. (researched)
• Aerospace and defence: Governments are the defence industry's customer, regulator and often owner: world military spending reached about USD 2.9 trillion in 2025, and in India about 75% of the defence capital acquisition budget is reserved for domestic industry, so budgets and procurement rules set the industry's order book. (researched)
• Crude oil: Governments both burn oil, above all in their armed forces, and live off it: India's petroleum sector paid about ₹7.58 lakh crore to central and state exchequers in 2024-25, so an oil shock hits public budgets through tax cuts, state oil company losses and defence fuel bills at once. (researched)
• Healthcare services: Healthcare services buys from Public administration, defence and security; public administration, defence and security buys from Healthcare services; healthcare services depends on public administration, defence and security; public administration, defence and security depends on healthcare services.
• Real estate: Real estate buys from Public administration, defence and security; public administration, defence and security buys from Real estate; real estate depends on public administration, defence and security; public administration, defence and security depends on real estate.
• Telecommunications: Telecommunications buys from Public administration, defence and security; public administration, defence and security buys from Telecommunications; telecommunications depends on public administration, defence and security; public administration, defence and security depends on telecommunications.
• Vehicles, ships, rail, aircraft: Vehicles, ships, rail, aircraft buys from Public administration, defence and security; public administration, defence and security buys from Vehicles, ships, rail, aircraft; vehicles, ships, rail, aircraft depends on public administration, defence and security; public administration, defence and security depends on vehicles, ships, rail, aircraft.
• Waste and recycling: Waste and recycling buys from Public administration, defence and security; public administration, defence and security buys from Waste and recycling; waste and recycling depends on public administration, defence and security; public administration, defence and security depends on waste and recycling.
• Water and sanitation: Water and sanitation buys from Public administration, defence and security; public administration, defence and security buys from Water and sanitation; water and sanitation depends on public administration, defence and security; public administration, defence and security depends on water and sanitation.
• Data centres and cloud: Public administration, defence and security buys from Data centres and cloud; public administration, defence and security depends on data centres and cloud.
• Education and research: Public administration, defence and security buys from Education and research; public administration, defence and security depends on education and research.
• Finance: banking, insurance, markets: Public administration, defence and security buys from Finance: banking, insurance, markets; public administration, defence and security depends on finance: banking, insurance, markets.
• Machinery and equipment: Public administration, defence and security buys from Machinery and equipment; public administration, defence and security depends on machinery and equipment.
• Medical devices: Medical devices buys from Public administration, defence and security; medical devices depends on public administration, defence and security.
• Pharmaceuticals: Pharmaceuticals buys from Public administration, defence and security; pharmaceuticals depends on public administration, defence and security.
• Professional services: Professional services buys from Public administration, defence and security; professional services depends on public administration, defence and security.
• Semiconductors: Public administration, defence and security buys from Semiconductors; public administration, defence and security depends on semiconductors.
• Software and IT services: Public administration, defence and security buys from Software and IT services; public administration, defence and security depends on software and IT services.
• Transport and logistics: Public administration, defence and security buys from Transport and logistics; public administration, defence and security depends on transport and logistics.
• Aluminium: Public administration, defence and security depends on aluminium.
• Ammonium nitrate: Public administration, defence and security depends on ammonium nitrate.
• Aviation propulsion: Public administration, defence and security depends on aviation propulsion.
• Cement: Public administration, defence and security depends on cement.
• Chlorine: Public administration, defence and security depends on chlorine.
• Combustion road vehicles: Public administration, defence and security depends on combustion road vehicles.
• Construction chemicals: Public administration, defence and security depends on construction chemicals.
• Crushed stone: Public administration, defence and security depends on crushed stone.
• Data centres: Public administration, defence and security depends on data centres.
• Distribution grids, mini-grids and interconnectors: Public administration, defence and security depends on distribution grids, mini-grids and interconnectors.
• Energy in buildings: Public administration, defence and security depends on energy in buildings.
• Explosives and propellants: Public administration, defence and security depends on explosives and propellants.
• Fuel stocks and strategic reserves: Public administration, defence and security depends on fuel stocks and strategic reserves.
• Gallium: Public administration, defence and security depends on gallium.
• Internal combustion engines and gensets: Public administration, defence and security depends on internal combustion engines and gensets.
• Nitric acid: Public administration, defence and security depends on nitric acid.
• Rail traction: Public administration, defence and security depends on rail traction.
• Rare earths: Public administration, defence and security depends on rare earths.
• Reagents and high-purity lab chemicals: Public administration, defence and security depends on reagents and high-purity lab chemicals.
• Sand & gravel: Public administration, defence and security depends on sand & gravel.
• Ship propulsion: Public administration, defence and security depends on ship propulsion.
• Small-molecule APIs: Public administration, defence and security depends on small-molecule APIs.
• Steel: Public administration, defence and security depends on steel.
• Titanium: Public administration, defence and security depends on titanium.
• Tungsten: Public administration, defence and security depends on tungsten.
• Waste-to-energy: Public administration, defence and security depends on waste-to-energy.
• Water: Public administration, defence and security depends on water.
• Water treatment chemicals: Public administration, defence and security depends on water treatment chemicals.