Defence Minister Rajnath Singh on 15 May 2025 revealed that India's domestic defence production has surged to a record ₹1.5 lakh crore — up from just ₹46,000 crore in 2014 — and projected the figure would climb further to ₹1.75 lakh crore within the next couple of months. Singh made the announcement while laying the foundation stones for multiple defence projects in Puttaparthi, Sri Sathya Sai district, Andhra Pradesh.

Defence Exports: A Tenfold Leap

Singh highlighted an equally dramatic rise in defence exports. India's arms and equipment sales to the world stood at under ₹1,000 crore before 2014; they have since climbed to a record ₹38,424 crore. 'We were able to sell weapons and equipment worth less than ₹1,000 crore to the world, but today that has risen to a record ₹38,424 crore. We have achieved many such accomplishments,' the minister said.

Four Major Projects Launched in Andhra Pradesh

Four significant defence projects received their foundation stones at the Puttaparthi event, with a combined investment running into thousands of crores.

The first is the Core Integration and Flight Testing Centre for the Fifth Generation Advanced Medium Combat Aircraft (AMCA), being developed by the Aeronautical Development Agency (ADA) — a constituent of the Defence Research and Development Organisation (DRDO). Singh noted that ADA had already delivered the LCA Tejas Mark-1 and is currently developing Mark-2, while simultaneously working on the fifth-generation stealth fighter. 'It will be a full-fledged Fifth Generation Stealth Fighter, which only a few countries in the world possess,' he said.

The second project belongs to Bharat Dynamics Limited (BDL), a public sector undertaking under the Ministry of Defence, with an outlay of ₹480 crore. The facility will focus on Autonomous Underwater Vehicles, Underwater Countermeasure Systems, and Next Generation Torpedoes — components that India has historically imported.

The third project is a manufacturing facility by Agneyastra Energetics Limited, a subsidiary of Bharat Forge Limited, with an investment of ₹1,500 crore. The plant will produce advanced weapons systems aimed at strengthening India's future combat readiness.

The fourth project is HFCL's Ammunition and Electric Fuse Plant, being built at an investment of ₹1,294 crore, which Singh said would add a new chapter to self-reliance in ammunition manufacturing.

Drone City in Kurnool

Separately, a consortium of eight drone companies is set to establish a 'Drone City' in Kurnool, Andhra Pradesh. Singh described the broader Public-Private Partnership model as having transformed defence manufacturing 'from a closed environment into a people's movement,' with Andhra Pradesh serving as a visible example of that shift.

Broader Economic Impact Expected

Singh argued that the benefits of these projects would extend well beyond the defence sector. He said the investments would function as growth poles, generating employment, developing supply chains, and connecting academia, engineering colleges, and ITIs to high-end technology. 'An entire ecosystem will develop, which will help in the holistic development of Andhra Pradesh,' he said.

Andhra Pradesh Chief Minister N. Chandrababu Naidu, Civil Aviation Minister Ram Mohan Naidu, state Minister Nara Lokesh, and senior officials were present at the event. With four projects launched and a Drone City in the pipeline, Andhra Pradesh is fast emerging as a key node in India's defence-industrial map.