India’s defence sector has undergone a remarkable transformation over the past decade, emerging as a stronger, more self‑reliant and globally credible force, announced PIB.

Guided by Atmanirbhar Bharat, sustained reforms, investment and indigenous innovation have strengthened defence capabilities.

The domestic defence industrial base has expanded significantly. As India marks its 80th Independence Day, this transformation reflects growing confidence in India’s ability to safeguard sovereignty and contribute to global security.

The defence budget has seen a 3.1‑fold growth, rising from ₹2.53 lakh crore in 2013–14 to ₹7.85 lakh crore in 2026–27. Capital expenditure has increased 2.3‑fold, from ₹94,587.95 crore in 2014–15 to ₹2.19 lakh crore in 2026–27, enabling sustained modernisation of the armed forces.

This investment has driven indigenous defence production, which reached a record ₹1.78 lakh crore in 2025–26, with 76 per cent of production from public‑sector entities and 24 per cent from the private sector.

Exports have expanded dramatically, rising 56‑fold from ₹686 crore in FY2013–14 to ₹38,424 crore in FY2025–26. India now exports defence systems to more than 80 countries, marking a growth of over 5,500 per cent in twelve years.

The private sector contributed ₹17,353 crore or 45.16 per cent of exports, while Defence Public Sector Undertakings contributed ₹21,071 crore or 54.84 per cent. The government has set ambitious targets of ₹3 lakh crore in annual defence production and ₹50,000 crore in exports by 2029.

Defence research and development has also strengthened the technological foundation. Allocation rose from ₹13,716.14 crore in 2014–15 to ₹29,100.25 crore in 2026–27, an increase of over 112 per cent. Since 2022–23, 25 per cent of the R&D budget has been opened to industry, start‑ups and academia. 

Testing facilities across 24 DRDO laboratories are now accessible through the Defence Testing Portal, a digital platform that allows domestic manufacturers and innovators to request paid access to specialised infrastructure.

Key initiatives are expanding India’s defence industrial capacity through indigenous manufacturing, modern infrastructure and greater private‑sector participation. The Defence Acquisition Council has accorded Acceptance of Necessity for over ₹6 lakh crore of DRDO‑designed, Indian industry‑manufactured systems.

Major acquisitions include 97 TEJAS MK‑1A fighter jets worth ₹62,000 crore and 156 LCH Prachand helicopters worth ₹62,700 crore, strengthening aerospace and defence manufacturing capabilities. The Defence Acquisition Procedure 2020, Defence Procurement Procedure 2016 and Defence Procurement Manual 2025 have streamlined procurement, accelerated approvals and prioritised indigenous projects. 

The Draft Defence Acquisition Procedure 2026 proposes simpler categories and indigenous content requirements of up to 60 per cent.

Innovation has been boosted through schemes such as iDEX, ADITI and the Technology Development Fund. iDEX, with a ₹498.78 crore outlay, has engaged 676 start‑ups, MSMEs and innovators, resulting in 551 design and development contracts by March 2026.

The ADITI scheme, approved with a ₹750 crore outlay, provides financial support to accelerate innovative defence technologies. The Technology Development Fund offers grants of up to ₹50 crore, with 80 projects worth ₹334 crore under implementation and an additional ₹500 crore corpus sanctioned for deep technology.

Technology transfer and industry participation have expanded. DRDO’s Development cum Production Partner framework has transferred technologies to 134 companies. Over 2,180 technology transfer agreements have been signed, and more than 2,780 intellectual property rights have been opened for industry use as of March 2026.

Indigenisation has been strengthened through ten Positive Indigenisation Lists covering 5,521 items, and platforms such as the Srijan Defence Equipment Empowerment Program have listed over 41,000 vendors and 2.7 lakh products.

Defence industrial corridors in Uttar Pradesh and Tamil Nadu have attracted investments of ₹42,057 crore and ₹32,699 crore respectively, with significant grounding realised. The BrahMos Integration and Testing Facility in Lucknow has begun missile manufacturing.

Ease of doing business reforms have extended industrial licence validity to 18 years, with lifetime validity now granted under the Arms Act. The revamped Defence Exim Portal enables end‑to‑end application processing, automated verification, real‑time tracking and secure payment integration. 

Foreign direct investment limits have been raised to 74 per cent under the Automatic Route and up to 100 per cent via the Government Route, attracting inflows of ₹6,670.59 crore by March 2026.

Operational self‑reliance has been strengthened. The Indian Army has achieved roughly 91 per cent self‑sufficiency by indigenising 159 of 175 ammunition variants. India has successfully tested the Agni‑4 and ICBM Agni‑5 ballistic missiles, validating operational parameters.

Indigenous precision‑strike capabilities have been demonstrated through the TARA Glide Weapon and RudraM‑II missile. DRDO has advanced systems such as the Kusha Long Range Air Defence Missile and Very Short‑Range Air Defence System, and tested integrated air‑defence systems combining interceptors, short‑range weapons and laser technologies. A 12‑minute ground test of an actively cooled scramjet combustor has supported hypersonic missile development.

Maritime defence has advanced with the commissioning of 12 warships and submarines, including INS Surat, INS Nilgiri and INS Vaghsheer. INS Mahendragiri, a stealth frigate with over 75 per cent indigenous content, has entered service.

SHACHI, the first of 11 Next Generation Offshore Patrol Vessels, has been launched, while INS Dunagiri, INS Sanshodhak and INS Agray have completed the indigenous Sandhayak‑class survey fleet. 

DRDO has successfully tested the Naval Anti‑Ship Missile–Medium Range and demonstrated multi‑layered Ballistic Missile Defence capability, strengthening India’s ability to counter aerial and maritime threats.

India’s defence transformation has built greater depth across military preparedness, manufacturing and internal security. It reflects a clear shift towards self‑reliance, technological capability and global confidence.

Stronger indigenous production, research and innovation are enhancing defence capacity across land, air and maritime domains. Growing exports and strategic partnerships are reinforcing India’s role as a reliable global defence partner.

With continued investment in advanced technologies and domestic manufacturing, India is building the capabilities needed to meet future security requirements and strengthen its position as a technologically advanced defence power by 2047.

PIB