Defence Minister Rajnath Singh on Friday, 14 August 2026 declared military modernisation and a self-reliant defence sector the top priority of the Narendra Modi government, addressing the Armed Forces on the eve of India's 80th Independence Day. Speaking to soldiers via Akashvani, Singh laid out a decade of transformation in India's defence industrial base — underpinned by the 'Aatmanirbhar Bharat' and 'Make in India' initiatives.

Record-Breaking Production Numbers

Domestic defence production has surged nearly four-fold over the past decade, rising from ₹46,000 crore in FY 2013-14 to a record ₹1.78 lakh crore in FY 2025-26. Singh described this as 'a testament to the structural changes that have taken place in the defence sector.' Defence Public Sector Undertakings (DPSUs) and other public entities accounted for 76 per cent of total output, while private sector contribution rose to 24 per cent, up from 22 per cent the previous fiscal year.

Exports Surge Over 5,500 Per Cent

India's defence exports have undergone a dramatic transformation. From a modest ₹686 crore in FY 2013-14, exports climbed to an all-time high of ₹38,424 crore in FY 2025-26 — a rise of more than 5,500 per cent. Singh called this 'the most compelling evidence of Aatmanirbharta in the defence sector.' India now counts 145 defence exporters shipping products to over 80 countries, and Singh expressed confidence that the ₹50,000 crore exports target will be met by 2029.

Budget and R&D Investments

The overall defence budget has more than tripled, rising from ₹2.53 lakh crore in FY 2013-14 to ₹7.85 lakh crore in FY 2026-27. Capital expenditure grew from ₹94,588 crore to ₹2.19 lakh crore over the same period. Research and Development spending also expanded significantly — from ₹15,283 crore in FY 2014-15 to ₹29,100 crore in FY 2026-27, a 90 per cent increase. This comes amid growing emphasis on indigenous weapons development and reduced dependence on foreign platforms.

Welfare Measures for Veterans and Families

Singh also reaffirmed the government's commitment to serving and retired personnel. The budget for the Ex-Servicemen Contributory Health Scheme has risen by 300 per cent over five years. Under the Armed Forces Flag Day Fund, the Penury Grant has been doubled from ₹4,000 to ₹8,000, the Education Grant from ₹1,000 to ₹2,000, and the Marriage Grant from ₹50,000 to ₹1,00,000. 'These decisions demonstrate our commitment to the welfare of our soldiers and their Next-of-Kin,' Singh said.

India as a Global Defence Hub

Notably, Singh framed India's trajectory not merely as self-sufficiency but as a pivot to global relevance — positioning the country as a 'net defence exporter' and an emerging 'global defence manufacturing hub.' This marks a strategic shift from India's long-standing status as one of the world's largest arms importers. Whether the private sector's growing but still-minority share in production can be scaled further will be a key test of the next phase of defence industrialisation.