India’s push for self-reliance in the defence sector is showing tangible results with a significant decline in imports and a record rise in exports. G Satheesh Reddy, Member of the National Security Advisory Board, highlighted that domestic sourcing of defence components and equipment has expanded remarkably over the past two decades.

Reddy noted that 20 to 25 years ago, India’s defence sector was heavily dependent on imports, with almost 90 per cent of capital expenditure spent abroad. The transformation, he said, reflects sustained policy focus on local manufacturing and indigenisation through initiatives such as Make in India and Atmanirbhar Bharat.

According to Reddy, the total Defence Budget stands at ₹6.81 lakh crore, of which ₹1.75 lakh crore has been allocated for capital expenditure. Impressively, ₹1.50 lakh crore of this amount was spent within the country in the previous financial year. The target for the coming year has been raised to ₹1.75 lakh crore, with a longer-term goal of ₹3 lakh crore by 2029. This signals the government’s firm commitment to bolstering domestic industrial capacity.

India’s defence exports reached ₹23,622 crore last year, marking a steady increase in global competitiveness. The government now aims to double these figures to ₹50,000 crore within two years. This growth has been driven by a mix of public sector undertakings and private players supplying a wide range of systems, including advanced missiles, UAVs, and radar equipment.

The defence manufacturing ecosystem in India now includes more than 2,000 tier-1 and tier-2 companies, along with another 20,000 tier-1, tier-2, and tier-3 firms.

This layered network reflects the growing integration of micro, small, and medium enterprises (MSMEs) into the broader defence supply chain. Both public and private sectors are contributing, demonstrating that the drive toward indigenisation is now industry-wide rather than limited to government agencies.

DRDO’s Director General for Production Coordination & Services Interaction, Chandrika Kaushik, urged start-ups and MSMEs to become active participants in defence development programmes. She emphasised that breakthrough innovation and rapid prototyping from smaller firms will be key to making India a globally competitive defence manufacturing hub.

Agencies