New Delhi: India procured military hardware and weapons worth ₹1.20 lakh crore from domestic sources by the end of the 2024-25 fiscal year, marking a significant increase in self-reliance in defence manufacturing, according to Defence Minister Rajnath Singh. The acquisition from domestic sources rose from approximately ₹74,000 crore in 2021-22 to ₹1.20 lakh crore, reflecting a substantial shift not only in numbers but in the strategic mindset towards boosting indigenous production.
This move aligns with the government’s long-term vision to enhance India’s defence capabilities through local design, development, and manufacturing, reducing dependency on imports and focusing on technology-oriented modern warfare including drones and anti-drone systems.
Defence Minister Rajnath Singh emphasised that modern warfare dynamics, especially non-contact warfare exemplified by drone operations during Operation Sindoor, are guiding these procurement priorities. The government is highly aware of these changes and is preparing accordingly with a focus on advancing critical defence technologies domestically.
The defence procurement policy under the Modi government seeks to achieve three key goals by 2047 as part of India’s broader developmental aspirations: attaining a high degree of self-reliance in critical defence capabilities; emerging as a significant global exporter in the defence sector; and making advancements in new niche and cutting-edge technologies. This approach places particular emphasis on enabling private sector participation, start-ups, and small and medium enterprises alongside public sector undertakings to create a robust and innovative indigenous defence ecosystem.
The Defence Procurement Manual 2025, recently approved by Rajnath Singh, complements these efforts by simplifying revenue procurement processes, encouraging innovation, and fostering collaboration between private industry, academia, and defence public sector undertakings. This manual is expected to expedite acquisitions worth around ₹1 lakh crore annually and streamline development while incentivising timely delivery.
India’s defence production reached a record ₹1.50 lakh crore in 2024-25, with exports also hitting new highs, reinforcing the country’s position as an emerging global hub for advanced defence technology manufacturing and supporting its strategic autonomy and combat readiness for future warfare.
