India’s defence manufacturing push: Imports fall, exports hit ₹23,622 crore

G Satheesh Reddy, Member of the National Security Advisory Board (file photo)
| Photo Credit:
RAMAKRISHNA G

G Satheesh Reddy, Member of the National Security Advisory Board (Government of India), has stated that domestic sourcing of Defence components and equipment has increased significantly over the last few years.

“In India, we were producing a bare minimum (of defence components, equipment) 20-25 years ago. Most of the things required by the defence sector were mostly imported. The defence sector used to spend 90 per cent of the capital expenditure on imports,” he said.

He was addressing a session on ‘Opportunities in Aerospace and Defence sector’ at the Hyderabad Entrepreneurship Summit organised by The Indus Entrepreneurs (TiE Hyderabad Chapter) here on Saturday.

Capital expenditure largely sourced domestically; targets set till 2029

“This has changed significantly. The Defence Budget stands at ₹6.81 lakh crore. Out of this ₹1.75 lakh crore was meant for capital expenditure. Of this, ₹1.50 lakh crore was spent in the country in the last financial year. The target given for the next year is ₹1.75 lakh crore. The target for 2029 stands at ₹3 lakh crore,” he said.

“From being one of the largest importers, we have now become an exporter. Last year, our Defence exports stood at ₹23,622 crore. The target for the next two years is to achieve exports of ₹50,000 crore,” he said.

“There are over 2,000 tier 1 and 2 companies working for the Defence industry. There are over 20,000 tier 1, 2 and 3 companies working in the indigenous Defence manufacturing sector,” he said.

Private sector, MSMEs and start-ups join the defence supply chain

“Private industries are producing a wide variety of Defence products, including missiles. It is not just the public sector; the private sector, too, is playing a significant role. Both sectors are expanding,” he added.

Chandrika Kaushik, Director General (Production Coordination & Services Interaction) of the Defence Research and Development Organisation (DRDO), wanted start-ups and micro, small, and medium enterprises to participate in the development process.

Published on November 1, 2025