Prime Minister Narendra Modi on Sunday, 21 June 2026, highlighted the sweeping policy reforms undertaken since 2014 that have accelerated India's defence production and driven defence exports to unprecedented levels, posting his remarks on X alongside a video.

In his post, PM Modi stated — '2014 के बाद से हमने नीतियों के स्तर पर बड़े रिफॉर्म किए हैं' — translated: 'Since 2014, we have carried out major reforms at the policy level. As a result, defence production has grown rapidly and our defence exports have increased at an unprecedented pace.'

Context

The statement comes as India's defence manufacturing ecosystem has undergone a structural transformation over the past decade. The government's push began with the Make in India initiative, launched in September 2014, which identified defence as a priority sector to reduce the country's heavy dependence on imports.

Subsequent years saw the introduction of the Defence Procurement Procedure 2016, designed to streamline acquisitions and give preference to indigenously developed systems. These steps laid the groundwork for a more ambitious self-reliance drive.

Policy Backdrop

A significant acceleration came with the announcement of the Atmanirbhar Bharat programme in 2020, which placed defence indigenisation at its core. In August 2020, the Ministry of Defence unveiled the first negative import list of 101 defence items, effectively barring their import to compel domestic sourcing.

Simultaneously, the foreign direct investment cap in defence was raised to 74 per cent under the automatic route to attract private capital into the sector. These interlocking reforms created conditions for both higher domestic output and a growing pipeline of exportable products.

The government has since expanded the negative import list in successive tranches, covering more sophisticated platforms and sub-systems, signalling a deliberate shift from import substitution toward building an export-oriented defence industrial base.

Stakeholders and Impact

Domestic defence manufacturers — spanning public sector undertakings and a growing private sector — have been the primary beneficiaries of these reforms, gaining access to larger orders and a more predictable procurement pipeline. The Indian Armed Forces stand to gain from faster induction of indigenously developed equipment, reducing long lead times associated with foreign procurement.

Defence exporters, including firms supplying platforms, ammunition, and electronics to friendly nations, have seen order books expand as India positions itself as a credible defence supplier in global markets. The government has set ambitious export targets as part of its broader strategic outreach.

What's Next

Observers will watch the next Union Defence Budget for fresh allocations earmarked for indigenisation incentives and production-linked schemes. Major defence exhibitions such as DefExpo and Aero India serve as key showcases for the progress India has made and are expected to draw further export interest.

Parliamentary standing committee assessments of export performance and the expansion of the negative import list to cover more advanced systems will be closely tracked as indicators of how deeply the reforms have taken root across the defence manufacturing value chain.