Defence Minister Rajnath Singh announced significant achievements and targets for India's defence sector during an event on July 18, 2026. Annual defence production reached a record high of approximately Rs 1.78 lakh crore in Financial Year 2025-26, representing a substantial increase from Rs 40,000 crore in 2014. Defence exports crossed an all-time high of Rs 38,000 crore in FY25-26, up dramatically from Rs 686 crore in FY 2013-14. The government has set ambitious targets to surpass Rs 2 lakh crore in defence production this year and reach Rs 3 lakh crore by 2029, with defence exports expected to reach Rs 50,000 crore by 2029.
The minister highlighted the success of the Aatmanirbharta (self-reliance) initiative in defence, noting that five positive indigenisation lists have been issued by the Defence Forces comprising 509 items, plus five lists by Defence Public Sector Undertakings consisting of 5,012 items. Another Positive Indigenisation List will soon be notified to further accelerate this vision. The government has earmarked 75% of the budget allocated for defence modernisation for procurement from Indian industries under the new Defence Acquisition Procedure (DAP).
Substantial investments are being made in defence infrastructure, with approximately Rs 70,000 crore proposed for defence industrial corridors in Uttar Pradesh and Tamil Nadu, of which around Rs 10,000 crore has already been invested. These corridors have created new employment opportunities and enabled advanced defence manufacturing with integration into global supply chains.
The defence innovation ecosystem has seen remarkable growth, with procurement worth over Rs 2,400 crore approved from start-ups and MSMEs, and projects worth more than Rs 1,500 crore sanctioned for new technologies. Through initiatives like Innovations for Defence Excellence (iDEX), iDEX Prime, and ADITI scheme, 676 start-ups and innovators have been engaged, with 551 contracts signed as of March 2026. The number of defence sector start-ups has grown from only a few dozen in 2018 to over 2,000 currently, working on drones, artificial intelligence, quantum technology, cybersecurity, robotics, and cutting-edge defence technologies.
The minister emphasized that Operation Sindoor demonstrated India's advanced defence preparedness using Made-in-India weapons systems such as Akash Teer, Akash missile system, and BrahMos, alongside various other state-of-the-art equipment. The government's 'zero tolerance' stance against terrorism has been operationalized through capable defence systems developed over the past 12 years.