India has sharply reduced its foreign defence spending from ₹70 to just ₹12 per ₹100 in capital procurement by 2026, according to official data shared by the Ministry of External Affairs, announced Indian Strategic Studies Foundation.

This marks a decisive shift in India’s defence strategy, showing how the country now builds more military gear at home instead of buying it from abroad. The transformation reflects a long-term policy drive towards self-reliance and strategic autonomy.

In 2010, India spent ₹70 out of every ₹100 on foreign weapons and parts. By 2026, that amount dropped to ₹12. This dramatic decline highlights the success of aggressive indigenisation policies and the prioritisation of local industry.

India now produces nearly 65 per cent of its required defence equipment domestically, a figure that underscores the scale of the manufacturing revolution. Policies such as “Make in India” have played a central role, enabling local companies to design and build tanks, guns, aircraft, and other critical systems.


The rise in defence exports has been equally striking. Data from the Press Information Bureau highlights a massive jump in selling Indian-made military items abroad. Defence exports grew from ₹686 crore in 2013–14 to ₹38,424 crore in FY 2025–26.

This exponential growth has positioned India as a credible supplier in the global defence market. Indian defence products now reach over 80 countries, ranging from missiles and radars to electronic warfare systems and naval platforms. Around 145 local firms now export military technology, compared to a very small group a decade ago, reflecting the rapid expansion of industry capacity.

The policy framework supporting this transformation has been robust. Successive Positive Indigenisation Lists have banned the import of hundreds of military items, compelling local production. 

The Defence Acquisition Procedure 2020 streamlined procurement processes, while the Defence Procurement Manual 2025 further simplified licensing and encouraged private sector participation. Budgetary allocations have been ring-fenced to ensure predictable demand for domestic firms, with nearly 80 per cent of capital acquisition expenditure directed toward indigenisation in FY25–26.

The private sector, MSMEs, and Start-Ups have been critical players in this ecosystem. Innovations for Defence Excellence (iDEX) has fostered R&D partnerships, while liberalised FDI norms have attracted investment.

The SRIJAN Defence Portal has facilitated the indigenisation of thousands of items, resulting in significant import substitution. Defence stocks have rallied in response, with companies such as HAL, GRSE, Paras Defence, and Zen Technologies gaining investor confidence.

India’s defence trajectory is now firmly aligned with the goal of expanding domestic manufacturing to ₹3 lakh crore and achieving exports worth ₹50,000 crore by 2029.

The challenge ahead lies in deepening technological self-reliance, ensuring that indigenisation moves beyond assembly to genuine innovation, and balancing selective foreign acquisitions with the broader objective of strategic autonomy.

The transformation from a heavily import-dependent nation to a rising exporter of defence systems marks one of the most significant shifts in India’s modern military history.

Agencies