India’s defence sector has experienced a remarkable rise in output and exports, underpinned by government reforms and increased private sector participation, aiming for further growth and global reach by 2029.
India’s defence industry has posted another sharp rise in output and exports, reinforcing the government’s push to build a larger domestic military manufacturing base. The latest official figures show defence production at Rs 1.78 lakh crore in the 2025-26 financial year, up from Rs 43,746 crore in 2013-14, while exports jumped to Rs 38,424 crore from Rs 686 crore over the same period.
According to a background note released by the Press Information Bureau, the expansion reflects more than a decade of policy support under the Make in India and Aatmanirbhar Bharat programmes. The note says reforms including the Defence Acquisition Procedure 2020, positive indigenisation lists and the iDEX innovation scheme have helped deepen local manufacturing, draw in private suppliers and widen participation by start-ups and research groups.
Defence Minister Rajnath Singh welcomed the figures and said they pointed to the progress of India’s indigenous defence ecosystem. In comments posted on X and in remarks reported by Indian media, Singh linked the gains to Prime Minister Narendra Modi’s leadership and to the government’s effort to reduce reliance on imports.
The production base remains dominated by the state sector, which accounted for 76% of output, while private companies made up the remaining 24%. In exports, however, the private sector played a larger role, contributing Rs 17,353 crore, or 45.16%, against Rs 21,071 crore, or 54.84%, from defence public sector undertakings.
The government said Indian-made defence goods were now being sold in more than 80 countries, up from a much smaller export footprint a decade ago. It is targeting annual defence production of Rs 3 lakh crore and exports of Rs 50,000 crore by 2029, goals that would require another sustained expansion in manufacturing capacity, technology depth and overseas demand.
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