New Delhi, June 17: India’s defence sector has transformed radically between 2014 and 2026, with the country’s annual defence exports surging from a mere Rs 686 crore in 2013–14 to a record Rs 38,424 crore in 2025–26 as the country’s military hardware found buyers in over 80 countries, according to an official factsheet issued on Wednesday.
Guided by Atmanirbhar Bharat and Make in India, the government has spearheaded sweeping policy reforms, empowered domestic innovation, and built a vibrant defence ecosystem. Through landmark initiatives such as the Defence Acquisition Procedure (DAP) 2020 and Defence Procurement Manual (DPM) 2025, the government has simplified procedures, boosted indigenous content, and opened doors wide for private sector and MSME participation.
The DRDO has played a pivotal role by developing cutting-edge defence technologies and partnering closely with industry to transform ideas into battlefield-ready systems, the statement said. The defence budget increased from Rs 2.53 lakh crore in 2013–14 to Rs 7.85 lakh crore in 2026–27, while indigenous defence production rose from Rs 46,429 crore in 2014–15 to Rs 1.78 lakh crore in 2025–26.
Defence budgets have grown significantly to support modernisation and indigenous manufacturing. Research and development funding has more than doubled, with greater participation from industry, startups, and academia. Landmark initiatives like SRIJAN DEEP, Positive Indigenisation Lists, and liberalised FDI have opened new opportunities for private sector involvement. Through strategic partnerships and indigenous platforms, India is enhancing its combat readiness and emerging as a responsible global defence player.
This decade of focused efforts has laid a strong foundation for a self-reliant and future-ready defence ecosystem contributing to Vision 2047, the statement said. Defence research and development allocation increased from Rs 13,716.14 crore in FY 2014–15 to Rs 29,100.25 crore in FY 2026–27, marking a rise of over 112 per cent. In 2022-23, the government also opened 25 per cent of the defence R&D budget to industry, start-ups, and academia to promote wider participation in innovation.
In 2024, expenditure of Rs 1,757 crore was allocated towards this by the Department of Defence, according to official figures. Further, several world-class R&D facilities in DRDO labs have been opened to private industries to foster a transparent defence ecosystem. To facilitate this, the Ministry of Defence (MoD) has formulated necessary Standard Operating Procedures (SOPs) and uploaded the testing infrastructure of 24 DRDO labs on the Defence Testing Portal, the statement added.
IANS
