New Delhi: India’s defence sector has undergone a transformational change over the past decade to emerge as a stronger, more self-reliant and globally credible force with the country’s production of military hardware recording an over fourfold increase to touch Rs 1.78 lakh crore in 2025-26 compared with a mere Rs 4,746 crore in FY 2013-14, according to a government factsheet issued a day ahead of the country’s 80th Independence Day.
Defence production reached a record Rs 1.78 lakh crore in 2025–26.
While production from public-sector entities accounted for 76 per cent of this output, the private sector contributed the remaining 24 per cent.
Defence exports rose from a mere Rs 686 crore in FY 2013–14 to Rs 38,424 crore in FY 2025–26 with the country’s military hardware finding markets in more than 80 countries.
The private sector contributed Rs 17,353 crore or 45.16 per cent of total defence exports in FY 2025–26, while Defence Public Sector Undertakings contributed Rs 21,071 crore or 54.84 per cent.
The Union government has fixed targets of Rs 3 lakh crore for annual defence production and Rs 50,000 crore in exports by 2029.
The R&D allocation for the defence sector rose from Rs 13,716.14 crore in 2014–15 to Rs 29,100.25 crore in 2026–27, which represents an increase of more than 112 per cent.
Since 2022–23, 25 per cent of the defence R&D budget has also been opened to industry, start-ups and academia in order to accelerate innovation and modernise defence production.
Testing facilities across 24 Defence Research and Development Organisation (DRDO) laboratories are accessible through the Defence Testing Portal (DTP), a digital platform managed by the Ministry of Defence.
This portal lets domestic manufacturers, startups, and industries request paid access to specialised government testing infrastructure to support indigenous defence production.
The Defence Acquisition Council (DAC), India’s apex defence procurement body, is driving ‘Atmanirbhar Bharat’ through indigenous acquisitions. It has accorded Acceptance of Necessity (AoN) for more than Rs 6 lakh crore of DRDO-designed, Indian industry-manufactured systems.
Major indigenous acquisitions are strengthening combat capabilities. The approvals include 97 Tejas Mk-1A fighter jets worth Rs 62,000 crore and 156 LCH Prachand helicopters worth Rs 62,700 crore. These procurements expand India’s domestic aerospace and defence manufacturing capabilities.
Defence Acquisition Procedure (DAP) 2020 strengthened indigenous procurement and domestic manufacturing. It also expanded opportunities for Indian companies in defence design, development and production.
Defence Procurement Procedure (DPP) 2016 streamlined defence acquisitions while advancing ‘Make in India’. It laid the foundation for subsequent reforms in defence procurement.
Defence Procurement Manual (DPM) 2025 streamlined nearly Rs 1 lakh crore in revenue procurement. It enabled faster approvals, relaxed penalties for indigenous projects and assured long-term orders, the statement added.
(IANS)
