Revenue from the sales of arms and military services by the 100 largest weapons-producing companies worldwide rose by 5.9% last year, with demand boosted by the wars in Ukraine and Gaza, and global and regional geopolitical tensions, as per a global report released on Monday.

The combined arms revenues of three Indian companies mentioned in the list increased by 8.2% to $7.5 billion (£5.6bn) on the back of domestic orders, according to the Stockholm International Peace Research Institute (SIPRI), a Sweden-based global think-tank.

Hindustan Aeronautics (at 44th spot), Bharat Electronics (58th) and Mazagon Dock Shipbuilders (91st) figure on the list.

Lorenzo Scarazzato, researcher with the SIPRI Military Expenditure and Arms Production Programme said: “Last year global arms revenues reached the highest level ever recorded by SIPRI as producers capitalised on high demand.”

For the first time since 2018, all of the five largest arms companies increased their arms revenues, SIPRI reported.

They were Lockheed Martin Corp. (US), RTX (US), Northrop Grumman Corp. (US), BAE Systems (UK) and General Dynamics Corp. (US).

The report showed that “although the bulk of the global rise was due to companies based in Europe and the US, there were year-on-year increases in all of the world regions featured in the top 100. The only exception was Asia and Oceania, where issues within the Chinese arms industry drove down the regional total.”

For the first time, nine of the top 100 arms companies were based in the Middle East, with combined arms revenues of $31bn (£23.4bn). Arms revenues in the region grew by 14%.

Scarazzato said: “Although companies have been building production capacity, they still face challenges that could affect costs and delivery schedules.”