India's indigenous defence production hit a record ₹1,27,434 crore in FY 2023-24, a 174 per cent surge from ₹46,429 crore in 2014-15.

The rise in the defence budget, from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26, underlines India’s determination to strengthen the country’s military infrastructure.

Read in Hindi: वैश्विक रक्षा विनिर्माण केंद्र के रूप में तेजी से उभर रहा है भारत

To reduce dependency on foreign countries, both the public and private segments of the industry have demonstrated consistent year-on-year growth, attributed to far-reaching policy reforms, enhanced ease of doing business, and a strategic focus on indigenisation over the past decade.

India now exports to over 100 nations, including to United States, France and Armenia. Defence Public Sector Undertakings and other PSUs accounted for approximately 77 per cent of total production, while the private sector contributed 23 per cent. The share of the private sector, which increased from 21 per cent in FY 2023-24 to 23 per cent in FY 2024-25, reflects the sector's growing role in the defence ecosystem of the country.

As a result, exports too saw a growth of ₹2,539 crore or 12.04 per cent over the exports figures of FY 2023-24. India aims to achieve defence manufacturing worth ₹3 lakh crore and ₹50,000 crore in defence exports by 2029, reinforcing India's role as a global defence manufacturing hub while boosting economic growth. Therefore, India's defence production sector is poised for continued acceleration in the years ahead, making the country Atmanirbhar.

Before the policy reforms were initiated, India’s defence sector faced significant bottlenecks. Procurement processes were slow, resulting in critical capability gaps. Dependence on imports was high, straining foreign exchange reserves and exposing vulnerabilities during global disruptions.

Earlier, private sector participation was limited due to restrictive policies, dominance of defence PSUs, and lack of technology access. Defence exports were not that high, valued at only ₹686 crore in FY 2013 14, positioning India primarily as an importer rather than a producer in the global defence market. To meet these challenges, the Ministry of Defence's draft Defence Production & Export Promotion Policy sets the compass for making India a top global defence manufacturer by encouraging R&D, rewarding innovation and IP creation, promoting industry-academia linkages, supporting MSMEs and setting export ambitions. The policy stitches together production, technology, and market access into one roadmap.

Anchored in the vision of Aatmanirbhar Bharat, India launched a series of reforms to build a self-reliant, globally competitive defence industry. Faster procurement through streamlined Defence Acquisition Procedures, followed by the Defence Acquisition Council, giving the nod for acquisitions.

Promoting indigenous production via Positive Indigenisation Lists, liberalised FDI norms for automatic route up to 74 per cent and up to 100 per cent through the government route, and the ₹1 lakh crore Research, Development and Innovation Scheme, fostering collaboration among DPSUs, private companies, MSMEs, and startups.

Boosting defence exports with simplified licensing, covering platforms such as bulletproof jackets, Dornier aircraft, Chetak Helicopters, fast interceptor boats, and lightweight torpedoes.

India has undertaken a series of landmark reforms to transform the defence procurement ecosystem. The twin frameworks, the Defence Acquisition Procedure 2020 and the Defence Procurement Manual 2025, together form the backbone of this transformation, ensuring speed, transparency, innovation, and self-reliance across both capital and revenue procurements.

The Defence Acquisition Procedure 2020 represents a transformative policy framework that serves as both a rulebook and a strategic roadmap for modernising the acquisition process while fostering a globally competitive domestic defence industry. Designed to overcome legacy challenges such as delays and import dependence, it embeds clarity and indigenous innovation into every stage of acquisition.

Building upon the DAP framework will help provide goods and services required by the Armed Forces for operational preparedness, worth approximately ₹1 lakh crore. Effective, 1 November, DPM 2025 introduces industry-friendly reforms aimed at ensuring fairness, transparency, and accountability in procurement and participation from domestic enterprises.

Key highlights include: Ease of Doing Business, which entails standardized procedures across all Armed Forces and MoD organizations to reduce delays; Support for Innovation and Indigenisation, fostering collaboration with industry and academia; Industry-friendly provisions, such as lower liquidated damages, 0.1 per cent per week for indigenisation projects, guaranteed orders for indigenous products for up to five years, and the removal of the outdated No Objection Certificate from erstwhile Ordnance Factory Board; and Digital Integration and Transparency, which have led to improved e-procurement systems and data-driven monitoring, ensuring accountability and efficiency in procurement processes.

Together, DAP 2020 and DPM 2025 represent a unified, forward-looking procurement architecture that aligns India’s defence acquisition process with the twin goals of operational readiness and industrial self-reliance. The integration of capital and revenue procurement ensures faster delivery of critical systems to the Armed Forces while empowering Indian industry to scale up innovation, manufacturing, and exports.

This comprehensive procurement ecosystem marks a decisive shift towards making India a global hub for defence production and innovation, driving the realisation of Aatmanirbhar Bharat in the strategic domain.

India recorded its highest-ever defence production of ₹1.54 lakh crore in FY 2024-25. The country is on track to achieve a target of ₹1.75 lakh crore in defence production in the current fiscal year, while it aims to reach ₹3 lakh crore in defence production by 2029, further establishing itself as a global defence manufacturing hub.

Two corridors, Uttar Pradesh Defence Industrial Corridor and Tamil Nadu Defence Industrial Corridor, are the lifelines of this transformation. Together, they have attracted investments worth over ₹9,145 crore, with 289 MoUs signed, unlocking ₹66,423 crore in potential opportunities, as of October this year.

DRDO has become a frontline institution that is driving India’s defence revolution. The restructuring of Ordnance Factories and creation of seven defence companies was undertaken to enhance functional autonomy, improve efficiency, and increase self-reliance in the defence preparedness of the country.

The private sector is no longer a silent observer. From drones to avionics to cutting-edge electronics, companies both big and small are stepping up, while 16,000 MSMEs are emerging as the game-changers, proving that India's defence manufacturing is no longer just about the giants; it’s an ecosystem where every innovator has a role to play.

India has emerged as one of the most attractive destinations for defence investment. With 788 industrial licenses issued to 462 companies, the participation of the Indian industry in defence manufacturing is growing rapidly. The Department of Defence Production has streamlined business through a fully digital portal for export authorisations, leading to 1,762 approvals in FY 2024 25, compared to 1,507 in FY 2023-24, marking a 16.92 per cent year-on-year growth and a 17.4 per cent increase in the number of exporters. Combined with liberalised FDI norms, the PLI scheme, and modern defence corridors, India offers a compelling opportunity for both domestic innovators and global investors.

In 2024-25, the Ministry of Defence signed a record 193 contracts valued at ₹2,09,050 crore, marking the highest ever in a single financial year. Of these, 177 contracts, worth ₹1,68,922 crore, were awarded to the domestic industry, reflecting a decisive shift toward Indian manufacturers and a strengthened indigenous defence ecosystem. This emphasis on local procurement has also spurred employment generation and technological innovation across the sector.

India’s defence acquisition landscape has seen transformative growth, with record budgetary allocations, streamlined procedures, and a renewed focus on indigenisation across the Services. At least 65 per cent of defence equipment is now manufactured domestically, a significant shift from the earlier 65-70 per cent import dependency, showcasing India's self-reliance in defence. India's approach ensures that every procurement strengthens national industry, reduces import dependency, and enhances operational preparedness.

The Defence Acquisition Council has approved record volumes of indigenous procurements in recent years. Modernisation and indigenisation of the Armed Forces remain a key priority. In the Union Budget, an allocation of ₹1.72 lakh crore has been made under the Capital Head for the Defence Services, reflecting a 20.33 per cent increase over the actual expenditure of FY 2022-23 and a 9.40 per cent increase compared to the Revised Estimates of FY 2023-24.

In March, the DAC approved eight capital acquisition proposals worth over ₹54,000 crore, including the 1,350 HP engines for T-90 tanks and indigenously developed Varunastra torpedoes and Airborne Early Warning & Control systems.

In July, the DAC cleared 10 capital acquisition proposals valued at approximately ₹1.05 lakh crore, including Armoured Recovery Vehicles, Electronic Warfare System, Integrated Common Inventory Management System for the Tri-Services, Surface-to-Air Missiles, Moored Mines, Mine Counter Measure Vessels, Super Rapid Gun Mount, and Submersible Autonomous Vessels. All items approved are indigenous under the Buy category, emphasising indigenously designed, developed, and manufactured systems.

In August, the DAC approved proposals worth ₹67,000 crore to enhance the operational capabilities of the Armed Forces. Key approvals included Thermal Imager-based Night Sights for BMPs for the Army, Compact Autonomous Surface Craft, BrahMos Fire Control Systems, and BARAK-1 upgrades for the Navy, and Mountain Radars along with SAKSHAM upgrades for the Air Force. The DAC also cleared indigenous Medium Altitude Long Endurance RPAs for all three Services, and maintenance support for C-17, C-130J, and S-400 systems.

Continuing the momentum, in October, the DAC approved procurement proposals worth approximately ₹79,000 crore for the Army, Navy, and Air Force, reinforcing India’s sustained commitment to capability enhancement and self-reliance across all domains of national defence. A key indigenous highlight is the Advanced Light Weight Torpedoes developed by DRDO's Naval Science & Technological Laboratory for the Navy. The other approvals include the Nag Missile System Mk-II, Ground-Based Mobile ELINT System, and High Mobility Vehicles for the Army; Landing Platform Docks, and 30mm Naval Surface Guns for the Navy; and the Collaborative Long Range Target Saturation System for the Air Force.

India has actively simplified the export pathway, standard operating procedures for the export of Munitions List items have been rationalised, and a fully end-to-end online portal now processes export authorisations digitally, cutting time and paperwork for exporters. Open General Export Licences and a digital authorisation system have further eased routine exports.

Exports are more than commerce: they build trust, interoperability and long-term partnerships. India’s expanding export basket, supplied to friendly countries, is an instrument of outreach, seen in defence cooperation, logistics support, training and spares packages that accompany sales. The widening list of importers signals growing global confidence in Indian platforms.

India’s exports today are broad and practical, from bulletproof jackets, patrol boats and helicopters, to radars and lightweight torpedoes, showcasing the depth and diversity of India’s defence manufacturing. While combat aircraft programmes like Tejas continue on the path to operational maturity and export discussions, India’s current strength lies in a wide range of proven, operational systems and components.

Overall, India's strategic collaborations and bold policy initiatives are not just reforms; they represent the foundation of a new era in defence self-reliance and technological sovereignty. With domestic production and exports poised for remarkable growth, and cutting-edge technologies steadily integrating into the industrial ecosystem, the vision of India as a global defence manufacturing hub is no longer a distant aspiration; it is unfolding before us.

From the establishment of Defence Industrial Corridors to the expansion of export facilitation, every measure underscores India's commitment to reducing import dependency and promoting indigenous capabilities. Together, these efforts are shaping a resilient, technology-driven defence ecosystem that not only strengthens national security but also positions India as a trusted global partner in defence manufacturing and innovation.