In a remarkable milestone for India, the financial year 2024-25 witnessed the country achieving its highest-ever defence production, amounting to ₹1.54 lakh crore. Alongside this achievement, defence exports surged to ₹23,622 crore. This significant progress marks a pivotal shift for India, transforming it from a major defence importer to an emerging manufacturing and exporting hub.
Reducing Import Dependency
Historically, India has been heavily reliant on imported defence equipment, which not only strained the national budget but also posed strategic risks during conflicts and global supply chain disruptions. Recognizing these challenges, India initiated a focused push towards indigenous development.
Push for Indigenous Development
The launch of the 'Make in India' initiative, followed by 'Atmanirbhar Bharat', ushered in a series of reforms aimed at fortifying the domestic defence sector. Key reforms included:
These measures have fostered private sector participation, enhanced MSME involvement, and bolstered R&D partnerships.
Defence Production Milestone
India's indigenous defence production reached a new height of ₹1.54 lakh crore in 2024-25, a significant leap from ₹46,429 crore a decade ago. The production ecosystem now includes over 460 licensed companies, with substantial contributions from private sector and MSME players.
Surge in Defence Exports
Defence exports experienced an extraordinary rise, reaching ₹23,622 crore in FY 2024-25. This represents a nearly 23-fold increase from 2014 levels, where exports were below ₹1,000 crore. India now exports a variety of items including artillery parts, coastal surveillance systems, light helicopters, and bulletproof gear to over 80 countries.
Increased Budgetary Allocation
The central government has demonstrated its commitment through a substantial increase in the defence budget, which climbed from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore for 2025-26. A significant portion is now allocated for capital expenditure and indigenously sourced equipment.
Vision 2029
Looking ahead, the government has set ambitious targets to achieve ₹3 lakh crore in total defence production and ₹50,000 crore in defence exports by 2029. These goals align with India's aspirations to become one of the top five defence producers globally.
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