India targets $25 billion domestic defence opportunity and expanded arms exports

India is positioning its domestic defence industry for significant growth, with Defence Secretary Rajesh Kumar Singh projecting an annual business opportunity of $20 billion to $25 billion over the next decade. To support this, the government aims to increase private sector participation in defence production from its current estimated share of 24 per cent to at least 50 per cent.

Key priorities include accelerating procurement processes, advancing fighter aircraft acquisition, and progressing jet engine co-production arrangements. The Ministry of Defence also seeks to finalize reforms to the Defence Acquisition Procedure (DAP) by the end of the year. Major acquisition programmes, such as the Multi-Role Fighter Aircraft (MRFA) programme, are currently under high-level processing.

Simultaneously, India is utilizing defence exports as a strategic tool of statecraft. Defence exports reached ₹38,424 crore in 2025-26, a nearly 63 per cent increase from the previous year. The government has set a target of ₹50,000 crore in annual exports by 2028-29. Notable export successes include BrahMos supersonic cruise missile agreements with Indonesia, the Philippines, and Vietnam, as well as various missile and artillery systems supplied to Armenia.