India’s indigenous defence production reached an all-time high of Rs 1,27,434 crore in FY 2023–24, marking a 174 per cent rise from Rs 464.29 billion in FY 2014–15. The Ministry of Defence said the growth reflects sustained policy reforms, higher budget allocations and a strong push for Atmanirbharta under Prime Minister Narendra Modi. The defence budget has increased from Rs 2.53 trillion in FY 2013–14 to Rs 6.81 trillion in FY 2025–26, strengthening the military-industrial base.

Both public and private sectors have reported steady expansion, supported by simplified procurement, improved ease of doing business and indigenisation initiatives. DPSUs and PSUs accounted for 77 per cent of total production, while the private sector’s share rose from 21 to 23 per cent year-on-year. India now exports defence equipment to more than 100 countries, with exports rising 12 per cent in FY 2024–25 to Rs 236.22 billion.

Prior to these reforms, India faced slow procurement, high import dependence and limited private-sector participation. The Defence Production & Export Promotion Policy (DPEPP) aims to position India as a global manufacturing hub by supporting R&D, industry-academia partnerships and innovation through schemes such as iDEX and the Rs 1 lakh crore RDI initiative.

Major policy frameworks—DAP 2020 and DPM 2025—have together transformed defence procurement. DAP 2020 prioritises indigenous systems, accelerates approvals and incorporates new-age technologies such as AI, cyber and space. DPM 2025 streamlines revenue procurement with standardised processes, reduced delays, industry-friendly clauses, guaranteed orders and full digital integration.

India recorded its highest-ever defence production of Rs 1.54 trillion in FY 2024–25 and aims to reach Rs 3 trillion by 2029. Defence corridors in Uttar Pradesh and Tamil Nadu have attracted investments worth Rs 91.45 billion, unlocking opportunities of more than Rs 660 billion.

The ecosystem continues to expand with DRDO’s enhanced funding for deep-tech projects, the creation of seven new defence companies from erstwhile ordnance factories and the participation of over 16,000 MSMEs. Investment interest remains strong, with 788 industrial licences issued to 462 companies and export authorisations increasing nearly 17 per cent year-on-year.

In FY 2024–25, the Ministry of Defence signed 193 procurement contracts worth Rs 2090.5 billion—its highest ever—of which Rs 1,68,922 crore went to the domestic industry. Recent approvals by the Defence Acquisition Council include critical systems for all three Services, ranging from missiles, torpedoes and radars to autonomous systems and battlefield platforms, all under the Buy (Indian-IDDM) category.

India’s defence exports, rising to Rs 236.22 billion, reflect growing global confidence in platforms such as patrol boats, helicopters, radars, sub-systems and lightweight torpedoes. Export reforms—including OGELs, digital authorisations and simplified SOPs—have made the process faster and more predictable.

With rising production, expanding exports, stronger indigenous capabilities and record domestic procurement, India’s defence sector is on a steady path toward becoming a global hub for manufacturing, innovation and strategic partnerships—firmly advancing the vision of Atmanirbhar Bharat.