The impact of COVID-19 on the world GDP as well as India’s has been severe, predicting -5% growth - the worst since Independence. Rohit Beri, Director, Aerospace & Defence Practice, Frost & Sullivan, takes us through the focus points of the economic impact in the defence sector. He focuses on the changing economic scenarios, and how it is likely to affect defence spending levels now and in the near future. While spending had been flat from 2009-2013, there was steady growth, almost 70 billion dollars in 2019. However, the purse strings might be tightened in the short to medium terms, before pre-pandemic level financial stability is assured in FY 2021. He also addresses the structural reforms for the defence sector announced as part of the stimulus package, and the growth opportunity that has arisen of this crisis.