India is stepping up its defence modernisation and self-reliance drive, with the country’s defence sector recording strong growth in domestic production, exports and indigenous procurement during 2025–26.
Defence production reached a record ₹1.78 lakh crore in FY 2025–26, marking a significant rise from ₹43,746 crore in FY 2013–14. Defence exports also touched a record ₹38,424 crore, with Indian defence products reaching more than 80 countries.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: India’s expanding defence modernisation and self-reliance drive
Location: India
Authority/Organisation: Ministry of Defence / Government of India
Action Taken: Increased allocation, indigenous procurement and domestic defence manufacturing
Impact: Record production and exports alongside stronger domestic defence capabilities
The expansion comes alongside a higher allocation for defence in the Union Budget 2026–27. The Ministry of Defence has received an allocation of around ₹7.85 lakh crore, reflecting the government's continued emphasis on military preparedness, modernisation and strategic capability building.
A major focus of the defence strategy is reducing dependence on imports by expanding domestic manufacturing. Capital procurement is increasingly being directed towards Indian industry, with domestic procurement forming a substantial part of the modernisation pipeline.
The government has also continued to encourage private-sector participation, defence startups, research and development and indigenous production of critical military systems.
Editorial Analysis
Why This Matters
A stronger domestic defence industry can reduce India's dependence on overseas suppliers, improve supply-chain resilience and create capabilities that can support the armed forces during prolonged geopolitical disruptions.
Modernisation is taking place across multiple domains, including air power, naval capabilities, missiles, unmanned systems, cyber, space and electronic warfare.
Strategic infrastructure along India's borders remains another important part of the defence push. Investment in roads, bridges and other connectivity projects is intended to improve the movement of troops and equipment while strengthening India's ability to respond rapidly in difficult terrain.
The broader shift is aimed at building a defence ecosystem that can meet a larger share of India's military requirements domestically while also positioning the country as a defence exporter.
The rise in exports indicates that India's indigenous defence manufacturing base is increasingly moving beyond domestic requirements and entering international markets.
