India’s Foreign Defence Procurement Drops to ₹12 Per ₹100 as Domestic Industry Expands

India has made significant progress in reducing its dependence on foreign defence suppliers, with the foreign component of capital defence procurement falling sharply over the past decade and a half. Around 2010, approximately ₹70 out of every ₹100 spent on capital defence procurement went to foreign sources. By 2026, the figure has declined to about ₹12 per ₹100, highlighting the growing contribution of domestic defence manufacturing.

The shift is closely linked to India’s push for Aatmanirbhar Bharat and Make in India. Government policies encouraging indigenous development and procurement have helped Indian companies and defence organisations expand their capabilities across missiles, aircraft, artillery systems, armoured platforms, naval equipment, radars and electronic warfare systems.

Government data indicates that around 65% of India’s defence equipment is now produced domestically, demonstrating the country’s growing manufacturing capacity. The expansion of local production is also helping India build a stronger supply chain and reduce its vulnerability to disruptions in international defence markets.

India’s defence exports have grown alongside domestic manufacturing. Defence exports reached a record ₹38,424 crore in FY 2025-26, up from ₹23,622 crore in FY 2024-25. This is more than 56 times the ₹686 crore recorded in FY 2013-14. Indian defence products are now exported to more than 80 countries, reflecting the increasing global reach of the country’s defence industry.

The private sector is also playing a larger role in this transformation. During FY 2025-26, private companies accounted for ₹17,353 crore, or 45.16% of India’s total defence exports, while defence public-sector undertakings contributed ₹21,071 crore.

India’s overall defence production reached a record ₹1.78 lakh crore in FY 2025-26. The government is targeting ₹3 lakh crore in annual defence production and ₹50,000 crore in defence exports by 2029, indicating its ambition to further expand the domestic defence industrial base.

While India continues to cooperate with international defence partners for advanced technologies and capabilities not yet fully available domestically, the sharp decline in foreign procurement demonstrates a clear move towards greater self-reliance. The combination of rising production, expanding exports and stronger private-sector participation could further strengthen India’s position as a major global defence manufacturing hub.