India's Defence Production Up 174% To Hit Record Rs 1.27 Lakh Crore, Boosting Aatmanirbhar Push

India has achieved another feat in its aspiration to become self-reliant in defence production and reduce dependency on foreign countries under Make-In-India initiative. The country’s indigenous defence production hit

a record Rs 1,27,434 crore in FY 2023-24, a 174% surge from Rs 46,429 crore in 2014-15. The record production is driven by continued government support in the form of huge allocation, enhanced ease of doing business, and a strategic focus on indigenisation over the past decade.

During the past one decade, India’s defence budget grew from Rs 2.53 lakh crore in 2013-14 to Rs 6.81 lakh crore in 2025-26.

India now exports to over 100 nations, including to United States, France and Armenia. Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for approx. 77% of total production, while the private sector contributed 23%. The share of the private sector, which increased from 21% in FY 2023-24 to 23% in FY 2024-25, indicates the sector’s growing role in the defence ecosystem. Exports too saw a growth of Rs 2,539 crore or 12.04% over the exports figures of FY 2023-24.

This is a positive step towards the government’s ambition to make India a global defence manufacturing hub, with goals of manufacturing worth Rs. 3 lakh crore and Rs 50,000 crore in defence exports by 2029.

Anchored in the vision of Aatmanirbhar Bharat, the Government launched a series of reforms to build a self-reliant, globally competitive defence industry. The key objectives include:

Faster procurement through streamlined Defence Acquisition Procedures (DAP), followed by DAC (Defence Acquisition Council), giving nod for acquisitions.

Promoting indigenous production via Positive Indigenisation Lists, liberalised FDI norms for automatic route up to 74% and up to 100% through the government route, and the ₹1 lakh crore Research, Development and Innovation (RDI) Scheme, fostering collaboration among DPSUs, private companies, MSMEs, and startups.

The twin frameworks, the Defence Acquisition Procedure (DAP) 2020 and the Defence Procurement Manual (DPM) 2025, together form the backbone of this transformation, ensuring speed, transparency, innovation, and self-reliance across both capital and revenue procurements.

Boosting defence exports with simplified licensing, covering platforms such as bulletproof jackets, Dornier aircraft, Chetak Helicopters, and fast interceptor boats, and lightweight torpedoes.

Declared as the Year of Reforms in 2025, the initiatives aim to transform the Armed Forces into a technologically advanced, combat-ready force capable of multi-domain integrated operations.