India's Defence Production Reaches All-Time High

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(pib.gov.in)

The government has introduced several initiatives to enhance defence production and self-reliance.

The Indian government has introduced several initiatives to enhance defence production and self-reliance, focusing on investment, domestic manufacturing, and simplified procurement. Measures like relaxing FDI limits and prioritising local production highlight a strong commitment to strengthening the defence sector.

Once dependent on foreign suppliers, India is now emerging as a key player in indigenous defence manufacturing. This shift ensures that India not only meets its security needs but also builds a strong defence industry that supports economic growth.

India's defence production has reached ₹1.27 lakh crore in FY 2023-24, reflecting a 174 percent increase since 2014-15, driven by the government's "Make in India" initiative. As per the data released by the Ministry of Defence, defence exports reached an all-time high of ₹21,083 crore in FY 2023-24, growing 30 times over the last decade, with exports to over 100 countries.

Strategic policies have fuelled this momentum, encouraging private participation, technological advancements, and the creation of advanced military platforms. The increase in the defence budget, from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26, highlights India's commitment to enhancing its military infrastructure.

With the indigenous production of advanced warships, fighter jets, artillery systems, and state-of-the-art weaponry, India is now a key player in the global defence manufacturing landscape. According to the Ministry of Defence, defence exports have increased from ₹686 crore in FY 2013-14 to an all-time high of ₹21,083 crore in FY 2023-24, a 30-fold increase over the past decade.

The focus on self-reliance in defence manufacturing has greatly decreased India's reliance on foreign suppliers. By implementing strategic policies and fostering domestic innovation, the country is creating advanced military platforms, enhancing both its national security and economic development.

The Department of Defence Production (DDP) and the Department of Military Affairs (DMA) have issued five Positive Indigenisation Lists (PILs), which set fixed timelines beyond which procurement will be restricted to domestic manufacturers. Out of over 5,500 items listed, more than 3,000 have been indigenised as of February 2025, as per official data. According to the Ministry of Defence, key indigenised technologies include artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters (LCHs), radars, wheeled armoured platforms, rockets, bombs, armoured command post vehicles, and armoured dozers.

Two Defence Industrial Corridors (DICs) have been established in Uttar Pradesh and Tamil Nadu to enhance defence manufacturing. These corridors offer incentives to businesses investing in the sector.