India emerges as global defence manufacturing hub, production hits record high: Rajnath

By Aroonim Bhuyan

New Delhi, Aug 14. Defence Minister Rajnath Singh on August 14 said India’s defence production has risen nearly four-fold over the past decade to a record ₹1.78 lakh crore ($18.66 billion) in 2025-26, as the government pushes to build a self-reliant and future-ready defence industry.

Addressing the armed forces through Akashvani on the eve of the country’s 80th Independence Day, Singh said initiatives such as ‘Aatmanirbhar Bharat’ (Self-reliant India) and ‘Make in India’ had transformed the defence sector, enabling India to meet a growing share of its own security requirements while emerging as a global defence manufacturing and export hub.

Defence production, which stood at around ₹46,000 crore in 2014, reached ₹1.78 lakh crore in 2025-26, he said. Public sector entities, including defence public sector undertakings, accounted for about 76 percent of the output, while the private sector’s contribution increased to 24 percent, compared with 22 percent in the previous financial year.

Singh said the sharp rise in private-sector participation reflected an improving business environment and greater opportunities for domestic industry in defence manufacturing.

India’s defence exports have also registered a dramatic increase, rising from ₹686 crore in 2013-14 to ₹38,424 crore in 2025-26, representing an increase of more than 5,500 percent, he said.

There are currently 145 defence exporters in the country, with Indian defence products being supplied to more than 80 countries, according to the Defence Minister. He expressed confidence that India would achieve its target of ₹50,000 crore in annual defence exports by 2029.

Singh said the government’s increased financial commitment to defence was another indicator of its focus on modernisation and emerging technologies. The defence budget has increased from ₹2.53 lakh crore in 2013-14 to ₹7.85 lakh crore in 2026-27, while capital expenditure has risen from ₹94,588 crore to ₹2.19 lakh crore.

The allocation for defence research and development has also increased by 90 percent, from ₹15,283 crore in 2014-15 to ₹29,100 crore in 2026-27, he said.

Highlighting the pace of military modernisation, Singh said the Defence Acquisition Council had granted Acceptance of Necessity for projects worth more than ₹8.75 lakh crore during the past year.

He also cited procurement reforms aimed at expediting acquisitions and promoting indigenisation. These include doubling the financial powers of field commanders to improve operational efficiency and enabling procurement worth more than ₹1.25 lakh crore through the revenue route to support domestic sourcing.

Singh credited the armed forces with actively participating in the drive towards self-reliance, saying indigenous warships, aircraft and advanced military systems were strengthening India’s defence capabilities.

He said the Defence Research and Development Organisation and the armed forces were also working to position India among leading countries in technologies relevant to future warfare.

Among the recent developments, Singh highlighted the successful test of the Tactical Advanced Range Augmentation system, which can enable conventional weapons to be converted into precision-guided munitions.

He also referred to the testing of the Advanced Agni missile with Multiple Independently Targetable Re-entry Vehicle (MIRV) technology, saying it had strengthened India’s strategic deterrence capabilities. Successful trials of the Long-Range Land Attack Cruise Missile, RudraM-II air-to-surface missile, Naval Anti-Ship Missile-SR and Pinaka Long-Range Guided Rocket had further enhanced the country’s strike capabilities, he said.

Singh said the successful test of an Active Cooled Full-Scale Scramjet Combustor for more than 1,200 seconds had placed India among a select group of countries with the capability to develop hypersonic missile technology.

He also highlighted the first successful test of the indigenous Kusha long-range surface-to-air missile, saying it would further strengthen India’s air-defence capabilities.

The Defence Minister said development of border areas remained a priority, with the government focusing on improving infrastructure, connectivity and defence preparedness in frontier regions.

He also praised the armed forces for acting as the country’s “first responders” during natural disasters and undertaking relief and rescue operations both within India and abroad.

On the welfare of serving and retired military personnel and their families, Singh said the government had substantially increased allocations for various welfare schemes. The budget for the Ex-Servicemen Contributory Health Scheme has increased by 300 percent over the past five years, he said.

He also pointed to higher grants under the Armed Forces Flag Day Fund, with the Penury Grant doubled from ₹4,000 to ₹8,000, the Education Grant from ₹1,000 to ₹2,000 and the Marriage Grant from ₹50,000 to ₹1 lakh.

Singh further underlined the government’s efforts to expand the role of women in the armed forces. He cited the commissioning of the first batch of women cadets trained at the National Defence Academy as officers in the three services as a landmark achievement.

He also referred to Samudra Pradakshina, the first tri-service all-women circumnavigation sailing expedition aboard the Indian Army Sailing Vessel Triveni, as an example of the growing role of women in national security and nation-building.

Recalling the sacrifices of freedom fighters and the role of the armed forces in protecting the country’s sovereignty, unity and integrity, Singh said the nation remained indebted to its soldiers for their courage, discipline and dedication.

He said the 2026 Independence Day was particularly significant as the year marks the 150th anniversary of Vande Mataram, and called on citizens to contribute actively to nation-building and the goal of building a ‘Viksit Bharat’ (Developed India).