India’s Defence Manufacturing Triples in a Decade as Exports Hit Historic Highs: Shripad Naik

India’s defence manufacturing ecosystem has undergone a transformational shift over the last decade. According to Union Minister of State for Power Shripad Yesso Naik, the value of Defence production India has increased more than threefold, reaching an all-time high of Rs 1.54 lakh crore in FY25. 

This marks a significant jump from Rs 46,429 crore recorded in FY15. The surge reflects sustained policy reforms, a focus on indigenisation, and increased private sector participation under the government’s Aatmanirbhar Bharat initiative, as reported by The Times of India on December 9.

How defence manufacturing and exports reshaped India’s strategic position

Addressing a press conference on December 9, Naik said India has moved decisively from being a net importer of defence equipment to a country that designs, develops, and manufactures advanced military systems. He highlighted that defence exports surged to a record Rs 23,622 crore in FY25, compared to less than Rs 1,000 crore in FY15, according to coverage by Business Standard citing PTI.

The transformation of Defence production India has been driven by structural reforms such as Defence Acquisition Procedure 2020, phased import bans, and production-linked incentives. India now exports ammunition, arms, sub-systems, complete platforms, and critical components to nearly 80 countries, reinforcing its position as a dependable global defence supplier.

The government has also announced an ambitious roadmap to achieve Rs 3 lakh crore in defence production and Rs 50,000 crore in defence exports by 2029, positioning India as a global defence manufacturing hub.

Defence Production Growth Over the Years

Source: Ministry of Defence statements, December 9, reported by
https://timesofindia.indiatimes.com/business/india-business/defence-production-in-india-increases-threefold-and-exports-surge-in-2024-shripad-naik/articleshow/126060708.cms

How past reforms laid the foundation for today’s growth

The rise in defence manufacturing is the outcome of policy continuity over the past decade. Between 2014 and 2024, the government introduced multiple positive indigenisation lists, restricting imports of hundreds of defence items. Defence industrial corridors in Uttar Pradesh and Tamil Nadu were launched to boost infrastructure and attract investments.

According to official data shared at the briefing, these corridors have together attracted investments worth over Rs 9,145 crore. The participation of MSMEs has also expanded rapidly, with more than 16,000 small and medium enterprises now integrated into the defence ecosystem. As a result, the private sector’s contribution to total defence output has risen to nearly 23 percent.

This policy framework has played a crucial role in strengthening Defence production India, ensuring supply chain resilience and technology absorption across domestic manufacturers. Details of government-backed support and MSME participation in defence manufacturing can also be found on LoansJagat’s explainer on defence-sector schemes:
https://www.loansjagat.com/government-schemes/defence-msme-schemes

Defence Exports Growth Snapshot

Source: Ministry of Defence data cited by PTI, December 9
https://www.business-standard.com/india-news/defence-production-triples-in-10-years-exports-hit-record-high-naik-124120900456_1.html

What key stakeholders are saying

Shripad Yesso Naik stated that India’s defence self-reliance has become a cornerstone of its emergence as a strong and secure global power. 

He added that accelerated reforms during 2025 have helped deepen indigenisation, expand exports, and strengthen collaboration between public sector units, private firms, and MSMEs.

Conclusion

India’s defence manufacturing story reflects long-term policy execution and industry participation. With clear targets for 2029, the momentum behind domestic defence capabilities is expected to accelerate further.
 

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