November 1, 2025

Once upon a time, India’s defence sector was heavily dependent on imports, shelling out 90% of its capital on foreign equipment. But how things have changed! G Satheesh Reddy, an esteemed Member of the National Security Advisory Board, shared exciting news at the Hyderabad Entrepreneurship Summit. “Twenty to twenty-five years ago, we were producing only a bare minimum of defence components and equipment,” Reddy explained. “Most of the defence requirements were mostly imported.” Fast forward to today, and the story is totally different. India’s Defence Budget has soared to a massive ₹6.81 lakh crore. Out of this, ₹1.75 lakh crore is allotted for capital expenditure, and get this — last financial year, ₹1.50 lakh crore of that was spent within the country! The target for next year? An even bigger ₹1.75 lakh crore, with a long-term goal of ₹3 lakh crore by 2029. From a defence sector heavily dependent on imports, India is now turning exporter. Last year, defence exports totaled a whopping ₹23,622 crore. The ambitious aim is to more than double that to ₹50,000 crore in just two years! But what’s powering this growth? Over 2,000 tier 1 and 2 companies are buzzing with activity in the Defence industry, while a whopping 20,000 tier 1, 2, and 3 firms are part of the indigenous Defence manufacturing ecosystem. It’s not just the public sector anymore. “Private industries are producing a wide variety of Defence products, including missiles,” Reddy said with pride. “Both public and private sectors are expanding rapidly.” Adding to this enthusiasm was Chandrika Kaushik, Director General of Production Coordination & Services Interaction at DRDO. She warmly invited start-ups and MSMEs to join the exciting defence development journey. The message is loud and clear: India’s defence sector is booming with homegrown powerhouses and innovation at its heart. From bare minimum production to a thriving domestic and export market, the country is soaring high as a defence manufacturing giant – and the future looks sparkling!

Read More at Thehindubusinessline →

Tags: Defence manufacturing, Indigenous Production, Defence exports, Make in india, Drdo, Private sector,