India’s defence sector has witnessed unprecedented growth, with production reaching a record ₹1.27 lakh crore in FY 2023-24, marking a 174% increase since 2014-15. According to a Ministry of Defence report, defence exports have also surged to ₹21,083 crore, expanding 30 times in a decade as part of India’s efforts to become a global defence manufacturing hub. The country now exports military equipment to over 100 nations, with top buyers including the USA, France, and Armenia.
The government has set ambitious targets of achieving ₹3 lakh crore in defence production and ₹50,000 crore in exports by 2029. This growth is driven by the "Make in India" initiative, which has significantly boosted domestic production. The Defence Ministry report highlights that 65% of defence equipment is now manufactured within the country, compared to a decade ago when 65-70% of military hardware had to be imported.
India’s expanding defence portfolio includes cutting-edge indigenous systems like the Dhanush Artillery Gun, Main Battle Tank Arjun, Light Combat Aircraft Tejas, Advanced Light Helicopter, Akash Missile System, and naval assets such as aircraft carriers, submarines, and offshore patrol vessels. The surge in military production is reflected in the increase in India’s defence budget, which rose from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26.
A key highlight of India’s growing defence exports is the supply of 'Made in Bihar' boots, now worn by the Russian Army. The country’s defence exports also include bulletproof jackets, Dornier Do-228 aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes. Defence exports grew by 32.5% year-on-year, jumping from ₹15,920 crore in FY 2022-23 to ₹21,083 crore in FY 2023-24.
India’s defence industrial base now comprises 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed companies, and approximately 16,000 MSMEs, with the private sector contributing 21% of total defence production. To further promote innovation, the Ministry of Defence has allocated ₹449.62 crore to the Innovations for Defence Excellence (iDEX) initiative, launched in 2018. Under iDEX, grants of up to ₹1.5 crore are provided to encourage the development of cutting-edge military technology.
With India's growing self-reliance in defence, experts believe the country is positioning itself as a major player in the global arms industry. The shift from being an importer to an exporter of military equipment marks a significant transformation in India's defence capabilities and strategic influence on the world stage.