Rubix Data Sciences has reported that India’s defence exports have increased 25-fold since FY2017, reaching a record ₹384 billion in FY2026, while domestic defence production touched an all-time high of ₹1.54 trillion in FY2025. The findings were released in the company’s latest “Rubix Industry Insights: Defence” report, marking the first anniversary of Operation Sindoor.

According to the report, India’s defence production has expanded more than threefold over the last decade, rising from below ₹500 billion in FY2015. The government is targeting production worth ₹3 trillion by FY2029. India’s defence budget has also tripled since FY2014, reaching ₹7.85 trillion in FY2027 and accounting for 14.67% of the Union Budget.

The report highlighted a sharp rise in domestic procurement. In FY2025, the Ministry of Defence signed 193 contracts worth ₹2.09 trillion, with 92% of contracts by volume and 81% by value awarded to Indian companies. Around 65% of India’s defence equipment is now manufactured domestically, compared to a heavy import dependence a decade ago.

India currently exports defence products to over 80 countries, including BrahMos missiles, Akash air-defence systems, naval vessels, artillery and radar systems. The government has set a defence export target of ₹500 billion by FY2029.

Mohan Ramaswamy said Operation Sindoor has brought India’s defence preparedness into sharper focus, while increasing participation from private companies, MSMEs and start-ups is strengthening the domestic industrial ecosystem and supply chain resilience.

The report noted that private sector participation in defence production rose to 23% in FY2025 from 19% in FY2017, while nearly 16,000 MSMEs and more than 1,000 defence start-ups are now part of the ecosystem. However, challenges remain in areas such as critical technology imports, R&D intensity and exposure to global supply chain disruptions, requiring sustained policy support and higher investments in advanced technologies.