From Rs 46,000 crore to Rs 1.78 lakh crore: Rajnath Singh on India’s defence manufacturing boom

“The government, under the leadership of Prime Minister Narendra Modi, is according the highest priority to the modernisation of the defence forces driven by a self-reliant and future-ready defence sector,” Singh said.

The defence minister said that initiatives such as Aatmanirbhar Bharat and Make in India have helped India strengthen its ability to meet its own security requirements while also emerging as a global defence manufacturing hub and a net defence exporter.

Defence production rises nearly four-fold

According to Singh, India’s domestic defence production stood at Rs 46,000 crore in 2014. By FY2025-26, it had reached a record Rs 1.78 lakh crore, representing nearly a four-fold increase over the period. The defence minister attributed the rise to structural changes in the sector and the government’s focus on building domestic manufacturing capabilities.

Defence Public Sector Undertakings (DPSUs) and other public sector entities accounted for around 76% of total defence production, while the private sector contributed the remaining 24%. The private sector’s share increased from 22% in the previous fiscal year, according to Singh.

“This growing participation of the private sector signals a continuously improving business environment within the defence sector,” he said.

Defence exports jump from Rs 686 crore to Rs 38,424 crore

India’s defence exports have also recorded a sharp increase during the period. Singh said defence exports, which stood at just Rs 686 crore in FY2013-14, reached an all-time high of Rs 38,424 crore in FY2025-26. That represents an increase of more than 5,500% over the period.

The defence minister described the rise in exports as one of the strongest indicators of the country’s growing self-reliance in defence.

“Today, India has 145 defence exporters, and our products are being exported to over 80 countries. I am confident that we will achieve our defence exports target of Rs 50,000 crore by 2029,” he said.

The increase in the number of exporters and the expansion of India’s overseas market, according to Singh, demonstrate the growing role of domestic companies in the defence manufacturing ecosystem.

Defence budget rises to Rs 7.85 lakh crore

The expansion of domestic defence manufacturing has taken place alongside a significant increase in government spending on defence. Singh said the defence budget has risen from Rs 2.53 lakh crore in FY2013-14 to Rs 7.85 lakh crore in FY2026-27.

Capital expenditure has also increased from Rs 94,588 crore to Rs 2.19 lakh crore over the period. The government has simultaneously increased its focus on defence research and development.

The R&D budget, which stood at Rs 15,283 crore in FY2014-15, has risen by 90% to Rs 29,100 crore in FY2026-27, Singh said.

“Capital expenditure has grown from Rs 94,588 crore to Rs 2.19 lakh crore. Our focus on Research & Development has also intensified,” he said.

Rs 8.75 lakh crore of projects get AoN

The Defence Minister also pointed to the government’s recent procurement activity as an indicator of the scale of ongoing military modernisation. Over the past year, the Defence Acquisition Council (DAC) has granted Acceptance of Necessity (AoN) for projects worth more than Rs 8.75 lakh crore, Singh said.

The approvals are part of the government’s effort to accelerate the modernisation of the armed forces while increasing the role of indigenous industry.

Singh also highlighted reforms in defence procurement, including a two-fold increase in the financial ceiling for Field Commanders aimed at strengthening operational efficiency.

The government has also facilitated procurement worth more than Rs 1.25 lakh crore through the revenue route to boost indigenisation, he said.

Indigenous systems gain importance

Singh said the armed forces have played an important role in India’s move towards greater defence self-reliance. The country’s indigenous warships, aircraft and advanced military systems, he said, are strengthening the capabilities of the defence forces.

He also highlighted the role of the Defence Research and Development Organisation (DRDO) and the armed forces in developing technologies intended for future warfare.

Among the developments he mentioned was the successful test of the first Tactical Advanced Range Augmentation system, which has the capability to transform conventional weapons into precision-guided munitions.

He also referred to the testing of the Advanced Agni Missile equipped with MIRV technology, saying it had added a new dimension to India’s strategic deterrence capabilities. The defence minister also talked about other systems, included the Long-Range Land Attack Cruise Missile, RudraM-II Air-to-Surface Missile, Naval Anti-Ship Missile-SR and Pinaka Long-Range Guided Rocket.

According to Singh, successful trials of these systems have strengthened India’s strike capabilities.

Hypersonic technology and air defence

The defence minister also highlighted developments in hypersonic and air-defence technologies. He said the successful test of the Active Cooled Full-Scale Scramjet Combustor for more than 1,200 seconds had placed India among the select group of countries capable of developing hypersonic missile technology.

India’s air-defence capabilities have also been strengthened with the first successful test of the indigenous Kusha Long-Range Surface-to-Air Missile, Singh said. The developments, he said, reflect the government’s focus on technologies that could shape future warfare.

Border connectivity remains a focus

Beyond weapons and defence manufacturing, Singh said the government is also focusing on development of border areas. The objective, he said, is to strengthen both defence preparedness and connectivity in border regions.

He also highlighted the role played by the armed forces in responding to natural disasters, describing them as “first responders” in relief and rescue operations both within the country and abroad.

Government highlights welfare measures for veterans

Singh also outlined measures aimed at improving the welfare of serving and retired defence personnel and their families. He said the budget for the Ex-Servicemen Contributory Health Scheme has increased by 300% over the past five years.

Under the Armed Forces Flag Day Fund, the government has also doubled several grants. The Penury Grant has increased from Rs 4,000 to Rs 8,000, the Education Grant from Rs 1,000 to Rs 2,000 and the Marriage Grant from Rs 50,000 to Rs 1 lakh.

“These decisions demonstrate our commitment to the welfare of our soldiers and their Next-of-Kin,” Singh said.

Women in the armed forces

The Defence Minister also highlighted the increasing participation of women in the armed forces. He said the commissioning of the first batch of female cadets trained at the National Defence Academy as officers in the three Services marked a historic milestone.

Singh also cited Samudra Pradakshina, described as the first tri-service all-women circumnavigation sailing expedition aboard Indian Army Sailing Vessel Triveni.

He said the initiative represented the growing role of women in national security and nation-building.

“This is proof that courage and leadership are not confined to any gender,” Singh said.

Defence manufacturing at the centre of Aatmanirbharta

The figures cited by Singh show the government’s emphasis on building a domestic defence manufacturing base alongside higher defence spending, increased R&D allocations and growing exports. Domestic production has risen from Rs 46,000 crore in 2014 to Rs 1.78 lakh crore in FY2025-26, while exports have increased from Rs 686 crore in FY2013-14 to Rs 38,424 crore.

At the same time, the private sector’s contribution to defence production has increased, while the government continues to push indigenous procurement and development of advanced military technologies.