The central government plans to scale up indigenous defence production to ₹3 lakh crore and more than double defence exports to ₹50,000 crore by 2029, on the back of record production in 2024-25.

According to government data, India recorded its highest-ever defence production of ₹1.54 lakh crore in FY 2024-25, up from ₹1,27,434 crore in FY 2023-24. With this, indigenous defence production, including private-sector contributions, has witnessed 234% growth over the last decade. It may be noted that defence production accounted for ₹46,429 crore in 2014-15.  

Exports of domestically manufactured defence goods have also grown phenomenally over the last ten years, according to government data. “India’s defence exports reached a record ₹23,622 crore in FY 2024- 25 from less than ₹1,000 crore in 2014,” said a government statement.

“Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approximately. 77% of total production, while the private sector contributed 23%. The share of the private sector, which increased from 21% in FY 2023-24 to 23% in FY 2024-25, reflects the sector’s growing role in the defence ecosystem of the country,” the statement said.

“The government aims to achieve defence manufacturing worth ₹3 lakh crore and ₹50,000 crore in defence exports by 2029, reinforcing India’s role as a global defence manufacturing hub while boosting economic growth. Therefore, India’s defence production sector is poised for continued acceleration in the years ahead, making the country Atmanirbhar,” said the statement.

Rising defence prowess is fueling the growth of the defence manufacturing ecosystem. “16,000 MSMEs are emerging as the game-changers, strengthening indigenous defence capabilities. 788 industrial licenses have been issued to 462 companies,” said the government statement.

“India’s indigenous defence production hit a record ₹1,27,434 crore in FY 2023-24, a 174% surge from ₹46,429 crore in 2014-15, fuelled by Prime Minister Narendra Modi’s Atmanirbharta policies. The upward trajectory in defence production is the result of continued government support over the past decade in the form of huge allocation and policy-level support extended to India’s military industrial base,” the government statement added.  

The government has given a significant push to the defence budget over the last decade. “The rise in the defence budget, from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26, underlines the government’s determination to strengthen the country’s military infrastructure. In order to reduce dependency on foreign countries, both public and private segments of the industry have demonstrated consistent year-on-year growth, attributed to far-reaching policy reforms, enhanced ease of doing business, and a strategic focus on indigenisation over the past decade,” the statement said.  

It may be noted that India exports defence equipment to over 100 nations, including the United States, France and Armenia.