India’s defence leap: From indigenous production to global exports, redefining national security

India’s defence sector has seen a notable transformation over the last 11 years, as government reports highlight rapid growth in domestic production, expanded exports and a more inclusive military structure.

According to a press briefing from the government on June 10, the defence budget has climbed from Rs 2.53 lakh crore in 2013–14 to Rs 6.81 lakh crore in 2025–26 . In parallel, indigenous defence manufacturing reached a record Rs 1.27 lakh crore in 2023–24—an increase of 174 per cent over the 2014–15 level.

Simultaneously, exports have surged more than 30-fold, growing from just Rs 686 crore nearly a decade ago to approximately Rs 23,622 crore in 2024–25.

Officials say production now meets about 65 per cent of defence requirements, compared to a heavy earlier dependence on imports. The Ministry of Defence signed 193 contracts worth Rs 2.09 lakh crore in 2024–25, with 177 contracts awarded to domestic firms for Rs 1.69 lakh crore.

The private sector’s role in defence output has also risen, contributing roughly 21 per cent, while over 430 licensed firms and 16,000 MSMEs now support a broad industrial base.

Another area of shift has been gender inclusion. Around 11,000 women now serve as officers in the armed forces, up from approximately 3,000 in 2014. In addition, 507 women have been granted permanent commissions to advance career progression.

Beyond mere numbers, the period has included doctrinal and operational changes. Reports highlight enhanced counter-terrorism actions and strategic border operations undertaken to protect internal security.

Challenges for India’s defence sector

Despite notable gains, India’s sector still faces major hurdles. These include quality control, delays in project execution, limited R&D spending, and a need for deeper integration between defence PSUs and private industry. India also remains dependent on foreign technology for jet engines, stealth systems, and advanced sensors.

Additionally, while defence indigenisation has increased in scale, true technological self-reliance will require consistent investment in research, talent retention, and long-term strategic planning.

Still, the changes over the past decade suggest India is positioning itself as both a regional power and a more assertive player in the global defence ecosystem.