India’s defence sector has witnessed an “extraordinary transformation” over the last eleven years, the Central government said on Tuesday.

What was once limited in scale and ambition has grown into a confident, self-reliant ecosystem. This shift has been shaped by firm political resolve and strategic thinking. Strategic policies have sparked new energy across the board, from production and procurement to exports and innovation, it said through an official release issued here.

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The defence budget has seen a steady rise, growing from Rs 2.53 lakh crore in 2013-14 to Rs 6.81 lakh crore in 2025-26. This sharp increase reflects India’s commitment to strengthening its military foundations. Behind these numbers lies a broader vision: to build a strong, secure and self-sufficient nation.

Private industry is now deeply involved. Innovation has taken the centre stage. The development of indigenous platforms, new-age technologies, and defence corridors shows how serious the government is about long-term preparedness, it asserted.

The results are striking. Record-breaking production, a surge in exports, targeted investments, and landmark defence contracts, each point to a defence ecosystem on the rise. India is not just modernising its forces; it is shaping a new future where strength and self-reliance go hand in hand.

India’s defence manufacturing has seen a remarkable transformation in the last eleven years.

In 2023-24, the country recorded its highest ever defence production, touching Rs 1.27 lakh crore. This is a sharp rise of 174 percent compared to Rs 46,429 crore in 2014-15.

The shift from import dependence to domestic production has been both strategic and swift. With clear political direction and consistent reforms, India has moved towards true self-reliance in defence. The focus has been on developing a strong industrial base anchored in indigenous design and manufacturing.

The government’s push to prioritise domestic procurement in defence acquisition has further boosted production. Public sector undertakings and private companies are both contributing to this new era of growth. From aircraft and missiles to surveillance systems and artillery, the range of indigenous products continues to expand, it said.

The Ministry of Defence signed 193 contracts worth Rs 2,09,050 crore in 2024–25 – the highest ever in a single year. Of these, 177 contracts were awarded to the domestic industry, amounting to Rs 1,68,922 crore, it added.

The Centre said this shows a clear shift towards prioritising Indian manufacturers and strengthening the defence ecosystem within the country.

The focus on indigenous procurement has also boosted job creation and technological advancement.

Two dedicated Defence Industrial Corridors have been established in Uttar Pradesh and Tamil Nadu. These corridors have attracted investments worth over Rs 8,658 crore and signed 253 MoUs with an estimated investment potential of Rs 53,439 crore as of February 2025.

Spread across 11 nodes in both states, these hubs are providing the infrastructure and incentives needed to turn India into a defence manufacturing powerhouse, it informed.

The government has also issued five Positive Indigenisation Lists that limit imports and encourage local manufacturing. Over 5,500 items are covered under these lists, of which 3,000 had been indigenised by February 2025.

Key indigenised technologies include artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters (LCHs), radars, wheeled armoured platforms, rockets, bombs, armoured command post vehicles, and armoured dozers. This structured push has ensured that critical capabilities are now being built within the country, it said.

Launched in April 2018, Innovations for Defence Excellence (iDEX) has fostered a vibrant ecosystem for innovation and technology development in the defence and aerospace sectors.

By engaging MSMEs, startups, individual innovators, R&D institutes, and academia, iDEX has provided grants of up to Rs 1.5 crore to support the development of cutting-edge technologies. Strengthening its impact, the Armed Forces have procured 43 items worth over Rs 2,400 crore from iDEX-supported startups and MSMEs, reflecting growing trust in indigenous innovation for defence preparedness.

To further enhance self-reliance in defence technology, Rs 449.62 crore has been allocated to iDEX, including its sub-scheme Acing Development of Innovative Technologies with iDEX (ADITI), for 2025-26.

As of February 2025, 549 problem statements have been opened, involving 619 startups and MSMEs, with 430 iDEX contracts signed, the government document added.