The Central government announced on Tuesday that India’s defence sector has undergone an “extraordinary transformation” over the past eleven years. Previously constrained in size and ambition, it has now evolved into a robust and self-reliant ecosystem, driven by strong political will and strategic foresight. This evolution has invigorated various aspects of the sector, from production and procurement to exports and innovation, as detailed in an official release.

The defence budget has consistently increased, soaring from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore by 2025-26. This remarkable growth signifies India’s dedication to reinforcing its military foundations, with an overarching goal of establishing a strong and self-sufficient nation.

Private industry is now playing a crucial role, with innovation taking center stage. The development of indigenous platforms, cutting-edge technologies, and dedicated defence corridors underscores the government’s commitment to long-term preparedness. The results are notable: record production levels, increased exports, targeted investments, and significant defence contracts all indicate a burgeoning defence ecosystem. India is not merely modernizing its forces; it is charting a new path where strength and self-reliance coalesce.

In the fiscal year 2023-24, India achieved its highest defence production ever, reaching ₹1.27 lakh crore—an impressive rise of 174% from ₹46,429 crore in 2014-15. This transition from reliance on imports to domestic production has been both strategic and rapid. With clear political direction and ongoing reforms, India has made substantial strides toward genuine self-reliance in defence, focusing on a robust industrial base rooted in indigenous design and manufacturing.

The government’s emphasis on domestic procurement has significantly elevated production levels. Both public sector undertakings and private firms are actively contributing to this new growth era. The range of indigenous products continues to expand, encompassing aircraft, missiles, surveillance systems, and artillery.

In 2024-25, the Ministry of Defence signed a record 193 contracts worth ₹2,09,050 crore, marking the highest number of contracts in a single year—177 of which were awarded to domestic industry, totaling ₹1,68,922 crore. This illustrates a decisive shift toward supporting Indian manufacturers and reinforcing the domestic defence ecosystem.

The focus on local procurement has also spurred job creation and technological advancements. Two Defence Industrial Corridors have been established in Uttar Pradesh and Tamil Nadu, attracting investments exceeding ₹8,658 crore and signing 253 MoUs with a projected investment potential of ₹53,439 crore by February 2025. These corridors, spread across 11 nodes in both states, are providing essential infrastructure and incentives to position India as a defence manufacturing hub.

Additionally, the government has introduced five Positive Indigenisation Lists aimed at limiting imports and promoting local production, covering over 5,500 items—with around 3,000 already indigenized as of February 2025. Key technologies that have been locally developed include artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters (LCHs), radars, and more. This structured initiative ensures that critical defence capabilities are now being built domestically.

Launched in April 2018, the Innovations for Defence Excellence (iDEX) program has cultivated a dynamic ecosystem for innovation in the defence and aerospace sectors. By engaging MSMEs, startups, individual innovators, R&D institutes, and academic institutions, iDEX has allocated grants of up to ₹1.5 crore to foster the development of advanced technologies. The Armed Forces have also procured 43 items worth over ₹2,400 crore from startups and MSMEs supported by iDEX, highlighting the increasing confidence in indigenous innovation for defence preparedness.

To further bolster self-reliance in defence technology, ₹449.62 crore has been allocated to iDEX for 2025-26, including its sub-scheme Acing Development of Innovative Technologies with iDEX (ADITI). By February 2025, 549 problem statements had been released, encompassing 619 startups and MSMEs, resulting in 430 iDEX contracts signed, as detailed in the government report.