India has achieved a historic milestone in its journey toward defence self-reliance. In the financial year 2024‑25, the country recorded its highest-ever defence production at ₹1.54 lakh crore, alongside defence exports that soared to ₹23,622 crore. This sharp rise highlights India’s shift from being a defence-importing country to an emerging defence manufacturing and exporting hub. For competitive exam aspirants, this development is a major current affairs highlight, encompassing themes of economics, national security, and industrial policy.
Historically, India has been among the top importers of defence equipment. Overdependence on foreign suppliers not only strained the exchequer but also posed strategic vulnerabilities during conflicts and global supply disruptions.
With the launch of Make in India and later Atmanirbhar Bharat, a series of reforms followed to boost the domestic defence sector. These included,
These reforms have encouraged private sector participation, boosted MSME involvement, and strengthened R&D partnerships.
India’s indigenous defence production touched ₹1.54 lakh crore in 2024‑25 — a significant leap from ₹46,429 crore a decade ago. The production ecosystem now includes over 460 licensed companies, with many players from the private sector and MSME segments contributing to this growth.
Defence exports witnessed a meteoric rise, climbing to ₹23,622 crore in FY 2024‑25. This marks a nearly 23-fold increase from 2014 levels, when exports were below ₹1,000 crore. India is now exporting items like artillery parts, coastal surveillance systems, light helicopters, and bulletproof gear to over 80 countries.
The central government has shown consistent commitment through a significant increase in the defence budget, which rose from ₹2.53 lakh crore in 2013‑14 to ₹6.81 lakh crore for 2025‑26. A major portion is now earmarked for capital expenditure and indigenously sourced equipment.
The government has set ambitious targets to reach,
by the year 2029. These goals align with India’s aspiration to become one of the top five defence producers globally.
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