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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsIndia’s defence industry is expanding: official figures put production at ₹1.54 lakh crore in FY 2024–25 and exports at ₹23,622 crore. Those records show momentum, not proof that India has displaced established producers or become self-reliant. The government’s stated goals—₹3 lakh crore in production and ₹50,000 crore in exports by 2029—remain targets, not achieved results.
What the production and export figures show
The Ministry of Defence, through the Press Information Bureau (PIB), reported defence production of ₹1,54,000 crore in FY 2024–25, up from ₹1,27,434 crore in FY 2023–24. The two figures cover different fiscal years. PIB’s March 2025 explainer said the FY 2023–24 record was 174% higher than ₹46,429 crore in FY 2014–15. These are reported production values, not measures of profitability, technological depth or domestic content across the industry.
Exports also rose, from ₹21,083 crore in FY 2023–24 to ₹23,622 crore in FY 2024–25. PIB says Indian defence goods reached more than 100 countries. Its reported export portfolio includes bulletproof jackets, Dornier aircraft, Chetak helicopters, fast interceptor boats and lightweight torpedoes; this list should not be read as evidence that every named item has the same export scale or success.
Government sources also name domestically developed systems including Tejas and Akash, as well as naval platforms. Their presence in the domestic portfolio indicates the breadth of activity, but does not by itself establish export volumes or international market position. PIB’s March 2025 explainer provides the FY 2023–24 production and export context; its FY 2024–25 update reports the later figures.
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Who makes defence equipment in India?
The production base includes Defence Public Sector Undertakings (DPSUs), other public-sector manufacturers, private licensed companies and smaller suppliers. DPSUs and other public firms remain the larger share of reported output: PIB says they accounted for about 77% of FY 2024–25 production, against about 23% for private firms. In its March 2025 account, PIB reported a 21% private share for FY 2023–24. The periods differ, so these shares should not be treated as measurements for the same year.
Not every company in this ecosystem builds a complete aircraft, ship or weapon system. Private firms and MSMEs also supply components, materials, spares and subsystems. The Department of Defence Production’s Annual Report 2024–25 describes the indigenisation of critical items used by DPSUs, illustrating the importance of supplier-level capability as well as finished platforms.
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How procurement policy creates demand for Indian suppliers
Government policy seeks to steer both purchases and production towards domestic sources. The Defence Acquisition Procedure gives procurement priority to Buy Indian (IDDM)—Indigenously Designed, Developed and Manufactured—categories. Positive Indigenisation Lists identify specified items for domestic sourcing, with timelines after which imports of those items are restricted in favour of local procurement.
The annual report says five DPSU Positive Indigenisation Lists cover 5,012 critical items, of which 3,025 had been indigenised during the reporting period. That is a dated count of listed items and their status, not a percentage of all equipment or components used by India’s armed forces.
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Other demand-side measures include simplified Make procedures and changes to offset policy. The Defence Investment Portal outlines these measures alongside procurement preferences. PIB reports that the Defence Procurement Manual 2025 took effect on 1 November 2025; that manual applies to procurement under its scope and is distinct from the broader Defence Acquisition Procedure.
How policy aims to expand investment and innovation
Supply-side initiatives include simplified industrial licensing, automatic-route foreign direct investment (FDI) of up to 74%, the SRIJAN portal for indigenisation opportunities, and iDEX support for innovation involving startups and MSMEs. The government also allocates 25% of its R&D budget for industry-led research and development, according to the investment portal. These are policy mechanisms; their existence alone does not establish how much new capability or commercial return they will produce.
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The government has established defence industrial corridors in Uttar Pradesh and Tamil Nadu to bring manufacturers and suppliers together. PIB reported that, as of October 2025, the two corridors had attracted more than ₹9,145 crore in investment and 289 memorandums of understanding. It separately cited ₹66,423 crore in potential opportunities. That last amount is a pipeline of potential opportunities, not realised investment. The Department of Defence Production annual report records cumulative defence-sector FDI inflows above ₹5,516.16 crore through December 2024; this dated total is not a live figure.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What “defence manufacturing hub” does—and does not—mean
Calling India an emerging hub is reasonable as a description of rising production and exports, a broader supplier base and policy aimed at domestic manufacturing. It does not establish that India has overtaken established global producers, achieved full self-reliance or become competitive in every defence category.
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Several measures answer different questions: production value tracks reported annual output; export value and destinations show overseas sales; public-private shares describe who produces; indigenisation lists track specified items; and investment figures indicate capital committed or potential activity. None, by itself, measures sector-wide domestic content, technological independence or commercial profitability. The government’s goal of ₹3 lakh crore in production and ₹50,000 crore in exports by 2029 is an ambition against which future results can be assessed, not a current accomplishment.
PIB reported the FY 2024–25 production figure and the 2029 production and export goals in its 2025 update.
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