India expands defence manufacturing and global exports

India is undergoing a significant transformation in its defence manufacturing sector, transitioning from import substitution toward technology ownership and global competitiveness. The industry is increasingly adopting advanced technologies, including artificial intelligence, robotics, 3D printing, and digital twins, to enhance precision and production speed. Key areas of growth include unmanned autonomous systems, such as indigenous drones and maritime surveillance, as well as the aerospace and avionics sectors.

Defence Secretary Rajesh Kumar Singh reported that India has become the third-largest arms exporter to Europe, driven by demand for ammunition and artillery shells under initiatives like the European Union’s ReArm Europe. Indian defence exports have reached a record ₹38,424 crore (approximately €3.6 billion), with products being supplied to more than 80 countries.

The manufacturing ecosystem comprises 16 major public-sector companies, approximately 840 large and medium-sized private enterprises, and nearly 17,000 smaller businesses and startups. To further bolster the domestic industry, the government aims to direct 75% of its annual defence capital expenditure—estimated between $20 billion and $25 billion—toward domestically produced equipment.