India’s defence production has witnessed remarkable growth, reaching ₹1.27 lakh crore in the financial year 2023-24. This achievement is a direct result of the "Make in India" initiative, which has transformed the country’s defence sector by promoting indigenous manufacturing.
Over the past decade, India has moved away from its earlier reliance on foreign suppliers, strengthening its self-reliance in military equipment and bolstering its national security.
A key driver of this growth has been the government’s strategic policies, which have encouraged private sector participation, technological innovation, and the development of advanced military platforms.
The increase in the defence budget, from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26, reflects India’s commitment to modernising its military infrastructure.
As a result, the country now manufactures a wide range of defence equipment, including warships, fighter jets, artillery systems, and cutting-edge weaponry.
One of the most notable developments in India’s defence sector has been the surge in defence exports. In the financial year 2023-24, exports reached ₹21,083 crore, a 30-fold increase over the past decade.
India now exports defence equipment to more than 100 countries, with the United States, France, and Armenia emerging as major buyers. The government has set an ambitious target of achieving ₹50,000 crore in defence exports by 2029, further solidifying India’s position as a key player in global defence manufacturing.
The Ministry of Defence has also signed a record number of contracts in 2024-25, with a total value exceeding ₹2,09,050 crore. Out of these, 92 percent were awarded to domestic companies, amounting to ₹1,68,922 crore.
This focus on indigenous production has strengthened the country’s defence industrial base, which now includes 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed companies, and approximately 16,000 micro, small, and medium enterprises (MSMEs).
Among the major defence acquisitions is the procurement of 156 Light Combat Helicopters (LCH) Prachand from Hindustan Aeronautics Limited (HAL), worth ₹62,700 crore. These helicopters are designed for high-altitude operations and feature over 65 percent indigenous content.
Additionally, the Indian Air Force has signed a contract to wet lease a KC-135 Flight Refuelling Aircraft, marking the first such arrangement for air-to-air refuelling training.
The Cabinet Committee on Security (CCS) has also approved the purchase of 307 Advanced Towed Artillery Gun Systems (ATAGS), developed by the Defence Research and Development Organisation (DRDO) in collaboration with private manufacturers.
With a range of over 40 kilometres, these artillery guns are expected to enhance the Indian Army’s firepower significantly.
India’s defence manufacturing capabilities have expanded through initiatives like the SRIJAN portal and the Positive Indigenisation Lists, which encourage the replacement of imported defence items with locally produced alternatives.
More than 14,000 items have been indigenised under SRIJAN, while over 3,000 components and subsystems have been included in the Positive Indigenisation Lists.
To further boost domestic production, India has established two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu. These corridors have attracted investments worth ₹53,439 crore, promoting the development of cutting-edge defence technology and creating new employment opportunities.
The Innovations for Defence Excellence (iDEX) programme, launched in 2018, has also played a crucial role in fostering technological advancements in the defence sector.
By engaging startups, MSMEs, and research institutions, iDEX has facilitated the development of next-generation military technologies, including artificial intelligence, quantum computing, and advanced surveillance systems.
The government’s focus on indigenous production has significantly reduced India’s dependence on defence imports.
Earlier, 65 to 70 percent of the country’s defence equipment was imported; today, 65 percent is manufactured domestically. This shift has strengthened national security while also contributing to economic growth.
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