India’s defence industry is moving steadily toward self-reliance. G Satheesh Reddy, Member of the National Security Advisory Board, said that domestic sourcing of defence components and equipment has grown sharply over the past two decades.
“Twenty to twenty-five years ago, India produced very little for its defence needs. Nearly 90 percent of the capital expenditure went on imports,” Reddy said, while speaking at the session ‘Opportunities in Aerospace and Defence Sector’ during the Hyderabad Entrepreneurship Summit organised by TiE Hyderabad.
The situation has changed. Out of a total defence budget of ₹6.81 lakh crore, ₹1.75 lakh crore is allocated for capital expenditure. “Last year, ₹1.50 lakh crore of that was spent within the country,” Reddy said. “The target for the next year is ₹1.75 lakh crore, and by 2029, we aim to reach ₹3 lakh crore.”
Exports on the Rise
India has also made a strong start in defence exports. “We have moved from being one of the largest importers to becoming an exporter. In the last financial year, India’s defence exports stood at ₹23,622 crore. The goal for the next two years is ₹50,000 crore,” Reddy said.
Expanding Industrial Network
The defence manufacturing ecosystem now includes more than 2,000 tier one and two companies and over 20,000 tier one, two, and three suppliers.
Private companies are taking on a bigger role alongside public sector undertakings. “Private industries are now producing a wide range of defence products including missiles. Both public and private sectors are growing together,” Reddy added.
Startups and MSMEs Join the Growth Story
Chandrika Kaushik, Director General for Production Coordination and Services Interaction at DRDO, urged startups and micro, small, and medium enterprises to contribute actively to the defence innovation process. She said their involvement is key to speeding up India’s progress toward full-scale domestic defence production.
India’s growing self-reliance, rising exports, and wider industry participation reflect a clear shift toward a stronger, more independent defence sector.
