India Emerges as Major Defence Exporter as Military Hardware Sales Soar Under Sector Reforms





New Delhi: India has witnessed a remarkable transformation in its defence sector over the past decade, with defence exports rising from just **Rs 686 crore in 2013-14** to a record **Rs 38,424 crore in 2025-26**, as domestically manufactured military equipment found buyers in more than **80 countries**, according to an official factsheet released on Wednesday.

The growth has been driven by the Centre's **Atmanirbhar Bharat** and **Make in India** initiatives, which have focused on strengthening indigenous manufacturing, encouraging private sector participation and promoting innovation in the defence industry.

According to the factsheet, a series of policy reforms, including the **Defence Acquisition Procedure (DAP) 2020** and the **Defence Procurement Manual (DPM) 2025**, have simplified procurement processes, increased the use of indigenous components and expanded opportunities for private companies and MSMEs to participate in defence production.

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The **Defence Research and Development Organisation (DRDO)** has played a key role by developing advanced defence technologies and working closely with industry partners to convert research into operational military systems.

The government's increased investment in the sector has also contributed to the rapid expansion. India's defence budget has grown from **Rs 2.53 lakh crore in 2013-14** to **Rs 7.85 lakh crore in 2026-27**, while indigenous defence production has increased from **Rs 46,429 crore in 2014-15** to **Rs 1.78 lakh crore in 2025-26**.

The factsheet highlights that higher budgetary allocations have supported military modernisation, domestic manufacturing and research. Funding for defence research and development has more than doubled during the period, with greater involvement from industry, start-ups and academic institutions.

The government has also introduced initiatives such as **SRIJAN DEEP**, **Positive Indigenisation Lists** and liberalised foreign direct investment (FDI) norms to accelerate indigenous production and attract private investment into the defence sector.

As part of efforts to broaden innovation, the government opened **25 per cent of the defence R&D budget** to industry, start-ups and academia in **2022-23**. In 2024, the Department of Defence allocated **Rs 1,757 crore** for collaborative research and innovation under this initiative.

Overall, the allocation for defence research and development has increased from **Rs 13,716.14 crore** in **2014-15** to **Rs 29,100.25 crore** in **2026-27**, representing a growth of more than **112 per cent**.

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To strengthen collaboration with private industry, several state-of-the-art testing and research facilities at DRDO laboratories have also been opened for industry use. The Ministry of Defence has framed standard operating procedures (SOPs) for this initiative and has uploaded the testing infrastructure of **24 DRDO laboratories** on the Defence Testing Portal to make access more transparent and efficient.

According to the government, these reforms have significantly strengthened India's defence manufacturing ecosystem, enhanced military preparedness and positioned the country as an emerging global exporter of defence equipment while advancing the long-term goal of achieving self-reliance in the sector under **Vision 2047**.
 

 

With inputs from IANS

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