India’s defence industry posts historic highs in production and exports, with ambitious plans for growth and greater international confidence shaping the future of its self-reliance drive.
India’s defence industry has posted record production and export figures as the government pushes a long-running drive for self-reliance, according to an official factsheet released ahead of the country’s 80th Independence Day. Military hardware output climbed to Rs 1.78 lakh crore in 2025-26, more than four times the Rs 4,746 crore recorded in 2013-14, while exports rose to Rs 38,424 crore, up from Rs 686 crore in 2013-14.
The figures underline how much the sector has changed over the past decade. Public-sector undertakings still accounted for the larger share of domestic output, with 76% of production, but private firms also played a substantial role. In exports, the private sector supplied Rs 17,353 crore, or 45.16%, while Defence Public Sector Undertakings contributed Rs 21,071 crore, or 54.84%.
The government has set even more ambitious targets for the end of the decade, aiming for annual defence production of Rs 3 lakh crore and exports of Rs 50,000 crore by 2029. The export base has widened to more than 80 countries, according to the factsheet, which presents the gains as evidence of growing international confidence in Indian-made military systems.
Officials have also stepped up support for research, testing and procurement reform. Defence R&D funding has risen from Rs 13,716.14 crore in 2014-15 to Rs 29,100.25 crore in 2026-27, an increase of more than 112%. Since 2022-23, a quarter of the R&D budget has been opened to industry, start-ups and academia. The Ministry of Defence has also expanded access to testing facilities through a digital portal covering 24 DRDO laboratories, while the Defence Acquisition Council has approved more than Rs 6 lakh crore worth of indigenous systems. Among the biggest purchases are 97 Tejas Mk-1A fighter jets valued at Rs 62,000 crore and 156 LCH Prachand helicopters worth Rs 62,700 crore.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
