India Defence News, New Delhi – India’s defence sector has undergone a transformative evolution, propelled by the "Make in India" initiative launched in 2014. According to the latest data shared by the Government of India on March 29, 2025, defence production reached an unprecedented ₹1.27 lakh crore in FY 2023-24, while exports soared past ₹21,000 crore. This remarkable growth reflects India’s shift from import dependency to a robust, self-reliant defence manufacturing hub with a growing global footprint.
Indigenous production, defence exports, self-reliance, and Atmanirbhar Bharat define this journey, underpinned by strategic policies, private sector innovation, and ambitious targets for 2029.
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Surge in Indigenous Defence Production
India’s defence production hit a record ₹1.27 lakh crore in FY 2023-24, marking a staggering 174% increase from ₹46,429 crore in FY 2014-15. This milestone, driven by the Make in India initiative, highlights the nation’s focus on indigenous manufacturing.
The Ministry of Defence (MoD) data shows that 65% of defence equipment is now produced domestically, a significant leap from the earlier 65-70% import dependency.
A robust industrial base, comprising 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed companies, and 16,000 MSMEs, has fueled this growth, with the private sector contributing 21% to total production.
Key platforms developed include the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Light Combat Aircraft (LCA) Tejas, and naval assets like destroyers and submarines. The government aims to scale production to ₹3 lakh crore by 2029, cementing India’s position as a global defence manufacturing hub.
| Year | Production Value (₹ Crore) | Growth (%) |
|---|---|---|
| FY 2014-15 | 46,429 | - |
| FY 2023-24 | 1,27,434 | 174% |
| Target 2029 | 3,00,000 | - |
Unprecedented Growth in Defence Exports
India’s defence exports have surged 30-fold over the past decade, rising from ₹686 crore in FY 2013-14 to a record ₹21,083 crore in FY 2023-24. This represents a 32.5% year-on-year increase from ₹15,920 crore in FY 2022-23.
Make in India Powers Defence Growth
— PIB India (@PIB_India) March 30, 2025
Production hit ₹1.27 lakh crore in FY 2023-24, Exports cross ₹21,000 crore
➡️ India's defence production reached ₹1.27 lakh crore in FY 2023-24, marking a 174% rise since 2014-15, driven by the Make in India initiative
➡️ Ministry of… pic.twitter.com/jKRX4DzxlZ
With exports now reaching over 100 countries, including top buyers like the USA, France, and Armenia, India’s diverse portfolio—featuring bulletproof jackets, Dornier (Do-228) aircraft, and lightweight torpedoes—demonstrates its manufacturing prowess.
Notably, ‘Made in Bihar’ boots are now part of the Russian Army’s gear, showcasing India’s high standards.
The government targets ₹50,000 crore in exports by 2029, driven by strategic policy interventions and a focus on self-reliance. Over two decades, exports grew 21 times, from ₹4,312 crore (2004-14) to ₹88,319 crore (2014-24).
| Period | Export Value (₹ Crore) | Growth Multiple |
|---|---|---|
| FY 2013-14 | 686 | - |
| FY 2022-23 | 15,920 | - |
| FY 2023-24 | 21,083 | 30x (decade) |
| 2004-14 Decade | 4,312 | - |
| 2014-24 Decade | 88,319 | 21x |
| Target 2029 | 50,000 | - |
Record Defence Contracts in 2024-25
In 2024-25, the MoD signed a record 193 contracts worth over ₹2,09,050 crore, nearly double the previous high. Of these, 177 contracts (92%) valued at ₹1,68,922 crore (81% of total value) were awarded to domestic industries, aligning with the Atmanirbhar Bharat vision. Key acquisitions include:
- Light Combat Helicopters (LCH) Prachand: Contracts worth ₹62,700 crore for 156 helicopters, with 66 for the Indian Air Force and 90 for the Indian Army. Featuring over 65% indigenous content, this deal supports 250 MSMEs and creates over 8,500 jobs.
- Advanced Towed Artillery Gun System (ATAGS): Approved for ₹7,000 crore, this includes 307 units and 327 towing vehicles, developed by DRDO with Bharat Forge and Tata Advanced Systems.
- Wet Leasing of KC-135 FRA: A first-of-its-kind lease with Metrea Management to train IAF and Navy pilots in air-to-air refuelling.
| Item | Value (₹ Crore) | Units | Indigenous Focus |
|---|---|---|---|
| LCH Prachand | 62,700 | 156 | 65%+ indigenous content |
| ATAGS | 7,000 | 307 | Buy Indian-IDDM category |
| Total Contracts | 2,09,050 | 193 | 92% domestic contracts |
Innovations and Indigenisation Efforts
The Innovations for Defence Excellence (iDEX) initiative, launched in 2018, has fostered a thriving ecosystem with ₹449.62 crore allocated for 2025-26. Engaging 619 startups and MSMEs, iDEX has signed 430 contracts and supports technologies like AI and quantum systems. Meanwhile, the SRIJAN platform has indigenised over 14,000 of 38,000 listed items, and Positive Indigenisation Lists (PILs) have localised over 3,000 of 5,500 items, including artillery and radars.
The SAMARTHYA event at Aero India 2025 showcased 33 indigenised items, such as the RudraM II Missile and Naval Anti-Ship Missile, highlighting India’s innovation strides.
Strategic Initiatives and Future Targets
India’s defence sector is bolstered by initiatives like the Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, attracting ₹8,658 crore in investments, and liberalized FDI policies allowing up to 74% automatic investment. The MAKE Projects initiative, with 145 projects underway, drives indigenous design, while a 75% domestic procurement allocation (₹1,11,544 crore) reinforces self-reliance.
Looking ahead, India aims for ₹3 lakh crore in production and ₹50,000 crore in exports by 2029, leveraging its growing capabilities and global demand for Made in India defence solutions.
Conclusion
India’s defence sector is a shining example of self-reliance and innovation, with production hitting ₹1.27 lakh crore and exports crossing ₹21,000 crore in FY 2023-24. The Make in India initiative, coupled with strategic policies and private sector dynamism, has transformed India into a global defence powerhouse. As it targets ₹3 lakh crore in production and ₹50,000 crore in exports by 2029, India is poised to enhance national security, boost economic growth, and solidify its role as a trusted partner in the international defence market.
SOURCE : GoI