India is strengthening its defence capabilities with a greater focus on indigenous manufacturing, advanced military technology and modernisation of its armed forces. With a defence allocation of ₹7.85 lakh crore for the financial year 2026–27, the government is aiming to build a stronger and more self-reliant defence sector. The increased investment reflects India’s commitment to improving military preparedness while reducing dependence on foreign defence equipment and technology.
Defence Minister Rajnath Singh highlighted these priorities during a meeting of the Ministry of Defence’s Consultative Committee on the Modernisation of Indian Defence Forces, held in Jaisalmer, Rajasthan, on November 3, 2026. During the meeting, he outlined India’s ambition to achieve domestic defence production worth ₹3 lakh crore and defence exports of ₹50,000 crore by 2029. These targets are part of the government’s broader strategy to establish India as a major global defence manufacturing and export hub.
India’s defence manufacturing industry has experienced significant growth over the past decade. Domestic defence production increased from ₹46,429 crore in 2014–15 to a record ₹1.78 lakh crore in 2025–26. Similarly, defence exports have grown from less than ₹2,000 crore in 2014 to approximately ₹40,000 crore. The government intends to maintain this growth by encouraging participation from defence public-sector undertakings, private manufacturers, start-ups and micro, small and medium enterprises.
The Union Budget 2026–27 allocated ₹7.85 lakh crore to the Ministry of Defence, representing a 15.19 per cent increase over the previous year’s Budget Estimates. Approximately ₹2.19 lakh crore has been allocated for capital expenditure, supporting the procurement of modern weapons, military platforms, equipment and other essential capabilities. This investment is expected to play an important role in strengthening India’s operational readiness and supporting long-term military modernisation.
The meeting also highlighted the growing importance of emerging technologies in modern warfare. Artificial intelligence, unmanned aerial systems, autonomous platforms, cyber capabilities, space-based technologies and electronic warfare are becoming increasingly important for military operations. India is looking to strengthen these areas through indigenous research, technological innovation and closer cooperation between the armed forces and domestic defence industries.
Rajnath Singh also stressed the importance of better coordination among the Indian Army, Indian Navy and Indian Air Force. Joint operational planning, integrated capabilities and improved coordination between the three Services will be essential for addressing future security challenges. He further emphasised that modernisation should include personnel training, operational preparedness and technological expertise rather than focusing only on purchasing new military equipment.
The government is also encouraging stronger collaboration between the Defence Research and Development Organisation (DRDO), defence manufacturers, private companies, start-ups and academic institutions. This approach is expected to accelerate the development of indigenous defence technologies and strengthen India’s domestic supply chain.
India’s defence modernisation programme reflects its broader ambition to become more self-reliant in national security and expand its presence in international defence markets. With increased budgetary support and ambitious production and export targets, the country is working towards building a technologically advanced, capable and future-ready military while strengthening its position in the global defence industry.
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