Policy reforms, enhanced R&D drive India's record defence production: Report
New Delhi, July 3
India's record defence production at $19 billion in FY26 was driven by policy reforms, growing private-sector participation, enhanced research and development, stronger domestic procurement and a strategic push towards indigenous manufacturing, a new report has said.
The report from Vietnam Times said defence output has more than doubled over the past five years, rising from about $8.5 billion FY21 to the current level.
The report credited a series of government measures - including positive indigenisation lists, simplified procurement procedures, higher domestic procurement targets and stronger support for indigenous research and development for the momentum in defence manufacturing.
India has pivoted from a dependence on foreign suppliers into a "manufacturing ecosystem that is expanding in scale, sophistication and global relevance."
While Defence Public Sector Undertakings remain central to production, the report highlighted the growing role of private industry.
The sector has witnessed rising participation from established industrial groups, specialised defence manufacturers, technology firms and a growing network of start-ups who are producing advanced systems that were once imported or manufactured exclusively by state-owned entities.
The report noted that indigenous manufacturing now spans a broad range of platforms and technologies, including artillery systems, armoured vehicles, naval platforms, missile systems, electronic warfare equipment, radar technologies, aerospace components and advanced communications.
Further, India's defence exports have skyrocketed in recent years, particularly due to government outreach efforts.
"The increasing global acceptance of Indian defence products reflects confidence in the country's capabilities and competitiveness," the report said.
Patrol vessels, radar systems, artillery equipment, protective gear, aerospace components and various defence technologies are now being exported across Asia, Africa, Europe and Latin America.
Defence Public Sector Undertakings and other PSUs accounted for approximately 76 per cent of total production, while the private sector contributed 24 per cent, which is a rise from 22 per cent in FY25.
The share of the private sector is at its all-time high of around Rs 42,000 crore in FY26, reflecting its expanding role in the defence ecosystem.
— IANS
Reader Comments
Impressive growth from $8.5 billion to $19 billion in just five years! But I hope the R&D focus isn't just about assembling imported components. We need genuine innovation in areas like AI and drone tech. The global export success is a good sign though.
As someone who works with a defence PSU, I can confirm the ground-level changes. Procurement procedures have definitely become simpler. But we still need more investment in critical technologies like semiconductors for radar systems. The private sector is welcome, but quality control should remain strict.
Living in Mumbai but tracking defence news globally. India's export growth to Asia and Africa is remarkable. The patrol vessels and radar systems are getting noticed internationally. If they maintain this pace, India could become a serious defence manufacturing hub. The report from Vietnam Times adds credibility too.
Great to see positive indigenisation lists working. But the private sector share at 24% still feels low for a country with so many industrial groups. We need stronger incentives for SMEs and more clarity on offset policies. Still, hats off to everyone involved in this achievement! 🎉
From importing to exporting - what a transformation! As a defence analyst, I can say the export figure is especially promising because it shows trust from other countries. The focus on artillery, naval platforms, and aerospace is smart. Just wish the private sector share was closer to 50% by now. Still, progress is progress. 💪
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