India’s annual defence production has surged upwards to reach an all-time high of ₹1.78 lakh crore.
Key Achievements
- Rise in Private Sector Participation: The private sector’s contribution to defence production has grown to 24% (around ₹42,000 crore).
- Reduced Import Dependence: Nearly 65% of defence equipment is now produced domestically.
- Historic Export Milestones: Defence exports skyrocketed from just ₹686 crore in 2013–14 to a record ₹38,424 crore in 2025–26 (5500% growth).
- Expanding Global Footprint: Indian defence products are now exported to over 80 countries.
- Development of Indigenous Defence Technologies:
- Aircraft- Tejas Mk-1(Indigenous fighter aircraft)
- Missile- Akash, Rudram, Mission Shakti (Anti- Satellite Missile), Long Range- Antiship Hypersonic Missile, etc.
- Helicopter: LCH Prachand.
- Aircraft Carrier: INS Vikrant
- Submarines: INS Arighaat, INS Vagsheer, etc.
Initiatives/reforms paved ways for Defence Transformation
- Expanded Defence Budget: The overall defence budget surged from ₹2.53 lakh crore in 2013–14 to ₹7.85 lakh crore in 2026–27.
- Simplified Procurement: Defence Acquisition Procedure (DAP) 2020 and the Defence Procurement Manual (DPM) 2025 simplified procurement and mandated higher indigenous content.
- FDI Reforms: The Foreign Direct Investment (FDI) limit in the defence sector was increased to 74% under the Automatic Route and up to 100% via the Government Route.
- Corporate Reforms: The 200-year-old Ordnance Factory Board (OFB) was dissolved and reorganised into seven new Defence Public Sector Undertakings (DPSUs) to enhance efficiency.
- Defence Industrial Corridors: New manufacturing hubs were established in the Uttar Pradesh corridor and Tamil Nadu corridor.
- Innovation Ecosystem: The Innovations for Defence Excellence (iDEX) scheme successfully engaged 676 startups and MSMEs to develop cutting-edge indigenous technologies.
