India has reached a defining milestone in its journey towards defence self‑reliance, with more than 65 per cent of its defence equipment now manufactured domestically. This marks a decisive shift from decades of high import dependency to a robust indigenous production base.

The transformation has been driven by the Aatmanirbhar Bharat initiative, rising procurement budgets amounting to ₹1.72 lakh crore in 2024‑25, and flagship projects such as BrahMos and Akash which have become symbols of India’s technological maturity and operational credibility.

The surge in indigenous production has been remarkable. Defence manufacturing touched ₹1.27 lakh crore in FY 2023‑24, representing a 16.7 per cent increase over the previous year. This growth reflects not only the scaling up of production lines but also the integration of advanced technologies into India’s defence ecosystem.

The expansion is part of a broader national ambition to raise domestic manufacturing to ₹3 lakh crore by 2029, ensuring that India’s armed forces are equipped with systems designed and produced within the country.

Exports have also reached record levels, underscoring India’s emergence as a credible supplier in the global defence market. Defence exports are estimated to have climbed to ₹38,424 crore in FY 2025‑26, with Indian‑made systems now being exported to more than 80 countries.

This includes a wide range of platforms such as missiles, artillery systems, drones, and electronic warfare equipment. The export surge demonstrates India’s ability to compete internationally and reflects growing confidence among foreign buyers in the reliability and cost‑effectiveness of Indian systems. 

The government has set a target of achieving ₹50,000 crore in exports by 2029, a figure that appears increasingly attainable given current momentum.

Policy support has been central to this transformation. The Defence Acquisition Procedure (DAP) 2020 and the Positive Indigenisation Lists have streamlined procurement processes, ensuring that domestic manufacturers are prioritised over foreign suppliers.

These measures have reduced bureaucratic delays and created predictable demand for Indian firms, encouraging them to invest in capacity expansion and innovation. The lists have also signalled to industry the specific categories of equipment where indigenous production is expected, thereby aligning private sector strategies with national priorities.

The role of the private sector and research and development has been equally critical. Through initiatives such as Innovations for Defence Excellence (iDEX), the government has fostered a culture of innovation, enabling start‑ups and smaller firms to contribute to defence technology development. 

Liberalised foreign direct investment norms have further encouraged collaboration, allowing Indian companies to access global expertise while retaining control over sensitive technologies. This combination of policy incentives and industry participation has created a dynamic ecosystem where innovation thrives and operational requirements are met with speed and efficiency.

Operational success has validated these efforts. Indigenous systems have proven their worth in real‑world scenarios, most notably during Operation Sindoor in 2025. The exercise highlighted the effectiveness of Indian‑made platforms in counter‑terrorism and high‑intensity combat situations.

From precision missile strikes to advanced air defence responses, the operation showcased the reliability of domestically produced systems and reinforced confidence in India’s ability to defend itself without reliance on foreign suppliers. The lessons from Operation Sindoor have accelerated the push for indigenisation, with the armed forces now more inclined to adopt homegrown solutions across domains.

This defence revolution is not merely about numbers or targets; it represents a strategic recalibration of India’s national security posture. By reducing dependence on imports, India has enhanced its autonomy in decision‑making and reduced vulnerability to external supply chain disruptions.

The integration of indigenous systems also ensures that sensitive data and operational control remain firmly within national hands, a critical factor in an era of cyber warfare and hybrid threats.

Furthermore, the export success positions India as a responsible stakeholder in global security, offering affordable and reliable systems to partners across Asia, Africa, and beyond.

The trajectory ahead is ambitious yet achievable. With clear policy direction, rising budgets, and proven operational success, India is on course to expand domestic defence manufacturing to ₹3 lakh crore and achieve exports worth ₹50,000 crore by 2029.

This transformation is reshaping India’s defence industry into one that is resilient, innovative, and globally competitive, ensuring that the country’s armed forces are equipped with sovereign capabilities while simultaneously contributing to international security.

Agencies