Executive Summary
On August 14, 2026, Raksha Mantri Shri Rajnath Singh highlighted India’s progress toward a self-reliant and future-ready defence sector under the ‘Aatmanirbhar Bharat’ and ‘Make-in-India’ initiatives. Key highlights include a surge in domestic production to ₹1.78 lakh crore, a record high in defence exports with a future target of ₹50,000 crore by 2029, and significant budgetary increases for R&D and personnel welfare. The address emphasized the government's priority on military modernization and the successful testing of advanced hypersonic and missile technologies.
Key Points / Main Content
Economic and Production Growth
Domestic Production: Increased from ₹46,000 crore in 2014 to a record ₹1.78 lakh crore in FY 2025-26.
Private Sector Contribution: Private sector participation rose to 24% of total production, up from 22% in the previous year, while DPSUs account for 76%.
Exports: Defence exports grew by over 5,500% since FY 2013-14, reaching ₹38,424 crore in FY 2025-26. India now exports to over 80 countries.
Export Target: The government aims to achieve a defence export target of ₹50,000 crore by 2029.
Budgetary and Structural Reforms
Defence Budget: Increased to ₹7.85 lakh crore in FY 2026-27, with capital expenditure rising to ₹2.19 lakh crore.
Research & Development: The R&D budget grew by 90% since FY 2014-15, reaching ₹29,100 crore in FY 2026-27.
Procurement Reforms: The Defence Acquisition Council granted "Acceptance of Necessity" for projects exceeding ₹8.75 lakh crore over the past year.
Financial Autonomy: Field Commanders received a two-fold increase in financial ceilings to improve operational efficiency.
Technological Advancements
Missile Technology: Successful testing of the Advanced Agni Missile (MIRV technology), RudraM-II, and the "Kusha" Long-Range Surface-to-Air Missile.
Hypersonic Capability: Successful 1,200-second test of the Active Cooled Full-Scale Scramjet Combustor, placing India among a select group of nations with hypersonic technology.
Precision Munitions: Testing of the first Tactical Advanced Range Augmentation system to convert conventional weapons into precision-guided munitions.
Welfare and Inclusivity
Ex-Servicemen Welfare: The budget for the Ex-Servicemen Contributory Health Scheme increased by 300% over five years.
Grant Increases: Grants for penury (doubled to ₹8,000), education (doubled to ₹2,000), and marriage (doubled to ₹1,00,000) were significantly enhanced.
Nari Shakti: A historic milestone was reached with the commissioning of the first batch of female cadets from the National Defence Academy.
Impact Analysis
Defence Public Sector Undertakings (DPSUs) and Private IndustryImpact
The sector is experiencing a significant shift toward domestic manufacturing and export-led growth, supported by a rising R&D budget and an improving business environment.
Action Required
Scale up production capabilities and innovation to meet the ₹50,000 crore export target by 2029 and fulfill the ₹8.75 lakh crore pipeline of project necessities.
Defence Personnel and VeteransImpact
Serving personnel and veterans benefit from increased financial grants, improved healthcare funding, and modernized equipment.
Action Required
Eligible individuals and families should utilize the increased grants for education, marriage, and health through the Armed Forces Flag Day Fund and ECHS.
Field CommandersImpact
Commanders now have greater financial autonomy to manage operational needs and indigenized procurement.
Action Required
Exercise the enhanced financial ceilings to strengthen local operational efficiency and accelerate revenue-route procurements.
Women in DefenceImpact
Expanded career paths and leadership opportunities are now available, as evidenced by the commissioning of female NDA cadets and all-women expeditions.
Action Required
Prospective female candidates should engage with new training and leadership pathways opened within the three Services.
Key Entities Referenced
Raksha Mantri (Shri Rajnath Singh): The Minister of Defence who outlined the government's top priority for military modernisation and self-reliance in the defence sector.
Aatmanirbhar Bharat: The flagship initiative driving India's efforts toward self-reliance in defence manufacturing, exports, and security.
Defence Acquisition Council (DAC): The governing body that approves major defence procurement projects and grants 'Acceptance of Necessity' for modernisation.
Defence Research and Development Organisation (DRDO): The lead agency responsible for developing advanced indigenous military technologies, including missile systems and future warfare tools.
Ex-Servicemen Contributory Health Scheme (ECHS): A healthcare scheme for retired defence personnel, highlighted as part of the government's commitment to veteran welfare.
Ministry of Defence
Military modernisation driven by a self-reliant &
future-ready defence sector is Govt’s top priority:
Raksha Mantri on the eve of 80th Independence
Day
प्रव तथ: 14 AUG 2026 5:38PM by PIB Delhi
“The Government, under the leadership of Prime Minister Shri Narendra Modi, is according the
highest priority to the modernisation of the defence forces driven by a self-reliant and future-
ready defence sector,” said Raksha Mantri Shri Rajnath Singh in his address to the soldiers
through Akashvani on the eve of 80th Independence Day on August 14, 2026. Highlighting the
transformative shift witnessed by the defence sector in the last 12 years due to the initiatives
such as ‘Aatmanirbhar Bharat’ and ‘Make-in-India’, Raksha Mantri asserted that India has
become a nation which is effectively catering to its own security needs, while emerging as a
global defence manufacturing hub and a net defence exporter.
Shri Rajnath Singh emphasised that the domestic defence production, which stood at just Rs
46,000 crore in 2014, has skyrocketed to a record Rs 1.78 lakh crore in the Financial Year (FY)
2025-26, nearly a four-fold increase over the last decade. This achievement, he said, is a
testament to the structural changes that have taken place in the defence sector. He pointed out
that Defence Public Sector Undertakings (DPSUs) and other public sector entities accounted for
approximately 76% of the total defence production, with the private sector contributing 24%, up
from 22% in the previous fiscal year. This growing participation of the private sector signals a
continuously improving business environment within the defence sector, he said.
Raksha Mantri added that defence exports, which stood at a mere Rs 686 crore in FY 2013-14,
surged to an all-time high of Rs 38,424 crore in FY 2025-26, an increase of over 5,500%. He
described the feat as the most compelling evidence of Aatmanirbharta in the defence sector.
“Today, India has 145 defence exporters, and our products are being exported to over 80
countries. I am confident that we will achieve our defence exports target of Rs 50,000 crore by
2029,” he said.
Shri Rajnath Singh also pointed out that the defence budget has risen from Rs 2.53 lakh crore in
FY 2013-14 to Rs 7.85 lakh crore in FY 2026-27, which is a reflection of India's growing
commitment to future defence technologies. “Capital expenditure has grown from Rs 94,588
crore to Rs 2.19 lakh crore. Our focus on Research & Development has also intensified. The
R&D budget, which stood at Rs 15,283 crore in FY 2014-15, has increased by 90% to Rs 29,100
crore in FY 2026-27,” he said.
Raksha Mantri added that over the past year, the Defence Acquisition Council has granted
Acceptance of Necessity for projects worth over Rs 8.75 lakh crore, which highlights the
Government’s emphasis on defence modernisation. He listed the fundamental reforms
undertaken in defence procurement to accelerate this modernisation process, including a two-fold increase in financial ceiling for Field Commanders to strengthen operational efficiency, and
facilitation of procurement worth more than Rs 1.25 lakh crore through the revenue route to
boost indigenisation.
Shri Rajnath Singh acknowledged the enthusiastic participation of the defence forces in the
journey towards Aatmanirbharta. He stressed that India’s defence self-reliance drive is gaining
momentum as indigenous warships, aircraft and advanced military systems are strengthening
the capabilities of the Defence Forces.
Raksha Mantri asserted that DRDO and the defence forces are positioning India at the forefront
of technologies for future warfare amidst the evolving defence landscape. He made special
mention of the successful test of the first Tactical Advanced Range Augmentation system, which
has the capability to transform conventional weapons into precision-guided munitions. “The
testing of the Advanced Agni Missile, equipped with MIRV technology, has added a new
dimension to the strategic deterrence capabilities. Successful trials of the Long-Range Land
Attack Cruise Missile, RudraM-II Air-to-Surface Missile, Naval Anti-Ship Missile-SR, and Pinaka
Long-Range Guided Rocket have provided unprecedented strength to the nation’s strike
capabilities,” he added.
On the successful test of Active Cooled Full-Scale Scramjet Combustor for over 1,200 seconds,
Shri Rajnath Singh stated that the feat has placed India among the select group of nations
capable of developing hypersonic missile technology. He added that the nation’s air defence
capabilities have been further bolstered by the first successful test of the indigenous Kusha’
Long-Range Surface-to-Air Missile.
Raksha Mantri underlined that border area development is a focus area of the Government as
the objective is to enhance defence preparedness and connectivity with border areas. He lauded
the defence forces for being the ‘first responders’ to carry out relief and rescue operations
whenever an unfortunate natural disaster occurs in the country or abroad.
Shri Rajnath Singh reiterated the Government’s commitment towards the welfare of serving and
retired defence forces personnel as well as their families, describing them as a reflection of
honor, dignity, and self-respect. “Over the past five years, there has been a 300% increase in the
budget of the Ex-Servicemen Contributory Health Scheme. Furthermore, under the Armed
Forces Flag Day Fund, the Penury Grant has been doubled from Rs 4,000 to Rs 8,000, the
Education Grant from Rs 1,000 to Rs 2,000 and the Marriage Grant from Rs 50,000 to Rs
1,00,000. These decisions demonstrate our commitment to the welfare of our soldiers and their
Next-of-Kin,” he said.
Raksha Mantri also underscored the Government’s continued focus on providing increased
opportunities for women in the defence forces and effectively utilising Nari Shakti in national
security & nation building. “We achieved a historic milestone when the first batch of female
cadets trained at the National Defence Academy was commissioned as officers in the three
Services. This is proof that courage and leadership are not confined to any gender. ‘Samudra
Pradakshina’, the first tri-service all-women circumnavigation sailing expedition onboard Indian
Army Sailing Vessel Triveni, stands as a symbol of ‘New India’ powered by ‘Nari Shakti’, he said.
Shri Rajnath Singh emphasised that 79 years ago, India’s freedom fighters such as Mahatma
Gandhi, Netaji Subhas Chandra Bose, Bhagat Singh, Chandrashekhar Azad, Sarojini Naidu,
Rani Gaidinliu, and countless known and unknown heroes laid the foundation of independent
India, and the responsibility of safeguarding the nation’s sovereignty, unity, and integrity today
rests on the Defence Forces. “Even in adverse circumstances, the steadfast resolve of our
soldiers ensures that the citizens realise their dreams in a safe environment. Their courage,commitment and discipline serve as a source of inspiration to every Indian. The nation will
remain forever indebted to their unparalleled service, sacrifice, and dedication,” he said,
expressing gratitude to every soldier.
Raksha Mantri stressed that the Independence Day this year holds special significance as 2026
marks the 150th anniversary of the National Song ‘Vande Mataram’. “It is our collective
responsibility to celebrate the occasion with great enthusiasm. It is not merely an anniversary,
but a celebration of our collective consciousness. I am confident that this Independence Day will
continue to fuel the spirit of patriotism and service to the nation within every citizen. Let us
pledge to become active participants in nation-building and, by discharging our duties with
dedication, make meaningful contributions towards building Viksit Bharat,” he said while
concluding his address.
स्वतंत्रता दवस क पूव संा पर सैनक के नाम संदश। https://t.co/rOkBuuCciI
— Rajnath Singh (@rajnathsingh) August 14, 2026
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