India's defence exports have surged to a record ₹38,424 crore in 2025–26, up from a modest ₹686 crore in 2013–14, with Indian military hardware now reaching buyers in more than 80 countries, according to an official factsheet released on Wednesday, 17 June 2026. The figures mark a more than 56-fold increase in export value over roughly a decade and underscore a structural shift in India's role in global defence supply chains.

Scale of the Transformation

The defence budget has more than tripled over the same period, rising from ₹2.53 lakh crore in 2013–14 to ₹7.85 lakh crore in 2026–27. Domestic defence production has similarly expanded, climbing from ₹46,429 crore in 2014–15 to ₹1.78 lakh crore in 2025–26. Research and development allocations have also grown sharply — from ₹13,716.14 crore in FY 2014–15 to ₹29,100.25 crore in FY 2026–27, a rise of over 112 per cent.

Policy Reforms That Drove the Push

The government attributes the growth to a sustained policy overhaul anchored in the Atmanirbhar Bharat and Make in India frameworks. Landmark procedural changes — including the Defence Acquisition Procedure (DAP) 2020 and the Defence Procurement Manual (DPM) 2025 — simplified procurement rules, raised mandatory indigenous content thresholds, and broadened access for private firms and MSMEs. Initiatives such as SRIJAN DEEP, Positive Indigenisation Lists, and liberalised foreign direct investment norms have further widened the aperture for private sector participation, according to the official statement.

Opening R&D to Industry and Startups

In 2022–23, the government reserved 25 per cent of the defence R&D budget for industry, startups, and academia. In 2024, the Department of Defence allocated ₹1,757 crore under this window, according to official figures. Additionally, testing infrastructure across 24 DRDO laboratories has been listed on the Defence Testing Portal, giving private manufacturers access to world-class R&D facilities under standardised operating procedures set by the Ministry of Defence (MoD).

DRDO's Role and Strategic Ambitions

The Defence Research and Development Organisation (DRDO) has been central to the effort, developing advanced defence technologies and working with industry partners to convert laboratory concepts into battlefield-ready systems, the factsheet noted. Through strategic partnerships and indigenous platforms, India is positioning itself as what officials describe as a 'responsible global defence player' — a framing tied to the broader Vision 2047 roadmap for a self-reliant defence ecosystem.

What Comes Next

With exports now exceeding ₹38,000 crore and a growing list of international buyers, the trajectory suggests India is consolidating its position as a mid-tier defence exporter. The sustained budget expansion, combined with deeper private-sector integration and R&D democratisation, sets the stage for further growth — though execution quality, delivery timelines, and after-sales support will determine whether India can compete with established exporters over the long term.