India’s Defence Production Reaches ₹1.27 Lakh Crore; 65% Equipment Now Made Domestically

India now manufactures 65% of its defence equipment, a sharp shift from its earlier 65-70% import dependence.

The Ministry of Defence announced on Tuesday that India’s defence production hit a record ₹1.27 lakh crore in 2023-24 under the ‘Make in India’ initiative.

India has expanded its defence exports, supplying bulletproof jackets, Do-228 aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes.

The ministry highlighted that ‘Made in Bihar’ boots are now part of the Russian Army’s gear, proving India’s high manufacturing standards.

The government has increased foreign direct investment (FDI) in defence. It now allows 74% FDI through the automatic route and above 74% via the government route.

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Since April 2000, the sector has received ₹5,516 crore in FDI, boosting domestic manufacturing.

India plans to increase defence production to ₹3 lakh crore by 2029.

The country has built advanced military systems like the Dhanush Artillery Gun, Tejas Fighter Jet, Akash Missile System, and modern naval ships.

The defence budget has grown from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26.

The government recently approved a ₹7,000 crore deal for 307 Advanced Towed Artillery Gun Systems (ATAGS) and 327 High Mobility Gun Towing Vehicles.

With 16 Defence PSUs, 430 licensed defence firms, and 16,000 MSMEs, India’s defence production continues to grow.

The private sector, contributing 21% of total production, plays a key role in innovation and efficiency. India is strengthening its military self-reliance and modernizing its defence industry.

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