From Boots To BrahMos — India’s Defense Production Up By 174%, Exports Shoot 30 Times; What Next For India?
India has traditionally been an importer of defense equipment. Even the recent SIPRI report placed India as the number two arms importer, behind Ukraine. This is, however, likely to change as the contribution of the private defense industry increases.
The domestic industry manufactures fighter aircraft, ships, submarines, main battle tanks, unmanned aerial vehicles, helicopters, artillery systems, and missiles. Recent orders for 156 Light Combat Helicopters (LCH), Advanced Towed Artillery Gun System (ATAGS), and NAG missile systems will further consolidate the position and credibility of domestic manufacturers.
The defense budget for FY 2025-26 has earmarked Rs 1,11,544 crores for procurement from domestic industry out of Rs 1,48,722 crores allocated for capital acquisitions. As much as 25% of the domestic industry allocation is earmarked for procurements from private industry, highlighting the government’s commitment to promoting the private defense industry.