**Executive Summary**
This report outlines the transformation of India’s defence sector as highlighted by Raksha Mantri Shri Rajnath Singh on July 18, 2026, following the successful execution of "Operation Sindoor." The document details record-breaking production and export figures, substantial investments in defence corridors, and the government’s commitment to "Aatmanirbharta" (self-reliance). Key deadlines include a ₹2 lakh crore production target for the current year and a ₹3 lakh crore target by 2029.
**Key Points / Main Content**
**Operational Success and Strategic Stance**
* **Operation Sindoor:** Cited as a demonstration of world-class readiness and technological warfare, utilizing advanced systems like Akash Teer and BrahMos missiles.
* **Counter-Terrorism:** Reiteration of a "zero tolerance" policy and the capability to strike terrorism at its source.
**Financial Milestones and Growth Targets**
* **Production Growth:** Annual defence production reached a record ₹1.78 lakh crore in FY 2025-26, up from ₹40,000 crore in 2014.
* **Export Achievements:** Defence exports hit an all-time high of ₹38,000 crore, with a target to reach ₹50,000 crore by 2029.
* **Future Targets:** A production goal of ₹2 lakh crore for the current year and ₹3 lakh crore by 2029.
**Indigenisation and Procurement Reforms**
* **Indigenisation Lists:** Five lists issued covering 509 items for the Defence Forces and 5,012 items for Defence Public Sector Undertakings (DPSUs); another list is to be notified soon.
* **Budget Allocation:** 75% of the defence modernisation budget is now earmarked for procurement from Indian industries.
* **New Acquisition Procedure:** A new Defence Acquisition Procedure (DAP) will be unveiled this year, prioritizing the "Buy Indian-Indigenously Designed, Developed & Manufactured" (IDDM) mechanism.
**Infrastructure and Innovation Ecosystem**
* **Defence Corridors:** ₹70,000 crore proposed for corridors in Uttar Pradesh and Tamil Nadu, with ₹10,000 crore already invested.
* **Startup Engagement:** Over 2,000 startups are active in the defence sector. Procurement worth ₹2,400 crore has been approved for startups and MSMEs.
* **Support Schemes:** Initiatives include iDEX (Innovations for Defence Excellence), iDEX Prime, and the ADITI scheme to foster research in drones, AI, and quantum technology.
* **Ordnance Factory Board (OFB):** Corporatisation has successfully transformed loss-making factories into profit-making units.
**Global Diplomacy and Strategic Partnerships**
* **Regional Influence:** India is emerging as a global security partner in the Indo-Pacific, with strengthened ties to Indonesia, Australia, and New Zealand.
* **Export Diversification:** Transitioning from a consumer to a producer, integrating Indian companies into global supply chains.
**Impact Analysis**
**Indian Defence Forces**
* **Impact:** Soldiers are increasingly equipped with "Made-in-India" weapons and state-of-the-art technology, enhancing strategic autonomy and morale.
* **Action Required:** Adopt and integrate new indigenous systems like Akash Teer and BrahMos into standard operational procedures.
**Domestic Industry (MSMEs and Startups)**
* **Impact:** Significant financial influx via ₹2,400 crore in approved procurements and ₹1,500 crore for new technology projects.
* **Action Required:** Engage with iDEX and the ADITI scheme; align manufacturing capabilities with the upcoming "Positive Indigenisation Lists."
**Youth and Scientists**
* **Impact:** Creation of new employment opportunities within defence industrial corridors and empowerment through innovation-driven research opportunities.
* **Action Required:** Leverage DRDO as a national innovation platform to transition from job seekers to technological partners in national security.
**Global Security Partners**
* **Impact:** Increased availability of Indian-made defence equipment and enhanced technical cooperation in the Indo-Pacific.
* **Action Required:** Engage with the Defence EXIM portal and streamlined export licensing for bilateral procurement and industrial collaboration.
Key Entities Referenced
Aatmanirbhar Bharat: The central initiative driving India's transformation into a self-reliant defence producer, aiming to minimize import dependence through domestic manufacturing.
Innovations for Defence Excellence (iDEX): A key platform for fostering research and innovation by engaging start-ups and MSMEs in developing cutting-edge defence technologies.
Defence Acquisition Procedure (DAP): The primary policy framework for military procurement that prioritizes indigenously designed, developed, and manufactured equipment.
Positive Indigenisation Lists: Regulatory lists issued to restrict the import of specific defence items, thereby promoting indigenous production and industrial growth.
Defence Industrial Corridors (Uttar Pradesh and Tamil Nadu): Strategic infrastructure zones established to create a robust defence manufacturing ecosystem with significant proposed investments.
Ministry of Defence
Op Sindoor demonstrated India’s world-class
defence readiness sharpened by Govt’s ‘Nation
First’ & ‘Forces First’ resolve: Raksha Mantri
“New India’s resolve: Soldiers equipped with Made-in-India
weapons, scientists empowered with new opportunities,
youth driven by innovation and industries capable of
competing globally”
“Defence Innovation: Procurement worth over Rs 2,400 crore
approved from start-ups & MSMEs; Rs 1,500 crore projects
sanctioned for new technologies; 676 start-ups & innovators
engaging through iDEX, 551 contracts inked”
“Rs 70,000 crore investments proposed for defence corridors
in Uttar Pradesh & Tamil Nadu; Rs 10,000 crore already
invested”
“Defence production target of Rs 2 lakh crore this year & Rs 3
lakh crore by 2029; Defence exports poised to reach Rs
50,000 crore by 2029”
प्रव तथ: 18 JUL 2026 2:19PM by PIB Delhi
“Operation Sindoor is testimony to India’s up-to-date, up-to-the-mark, and up-to-the-standard defence
preparedness, sharpened by the transformation of the defence sector through Prime Minister Shri Narendra
Modi-led Government’s sustained efforts in the last 12 years, guided by the spirit of 'Nation First' and
'Forces First',” said Raksha Mantri Shri Rajnath at an event in New Delhi on July 18, 2026. He described
Op Sindoor as a reminder of the unmatched valour of the Indian Defence Forces, which gave a befitting
reply to terrorists and their patrons, reflecting the Government’s clear ‘zero tolerance’ stance against
terrorism. He emphasised that ‘zero tolerance against terrorism’ is not merely a statement but a line of
action, reiterating that India has the capability to strike against terrorism not only at its doorstep but also
by entering where it resides.
Raksha Mantri asserted that India’s transformed defence sector played a pivotal role in the successful
execution of a complex operation such as Op Sindoor, describing it as a shining example of technological
warfare and proof of the Government’s trust in Indian industries. “Advanced systems such as Akash Teer,Akash missile system and BrahMos were effectively used during the operation alongside various other
state-of-the-art equipment. This is due to the foundation laid over the past 12 years,” he said.
Highlighting the steps taken by the Government to foster Aatmanirbharta in defence, Shri Rajnath Singh
stated that five positive indigenisation lists have, so far, been issued by the Defence Forces comprising
509 items, in addition to five by the Defence Public Sector Undertakings consisting of 5,012 items. “As
we move forward with determination and a systematic approach towards building a self-reliant and
empowered defence sector, another Positive Indigenisation List will soon be notified to further accelerate
this vision,” he said.
Listing out the positive results achieved due to the continuous self-reliance efforts, Raksha Mantri said the
annual defence production reached a record high of approximately Rs 1.78 lakh crore in Financial Year
(FY) 2025-26 from Rs 40,000 crore around 2014. He added that defence exports have crossed an all-time
high figure of Rs 38,000 crore from Rs 686 crore in FY 2013-14. “Our defence production target is to
surpass the figure of Rs 2 lakh crore this year and Rs 3 lakh crore by 2029. Our goal is to ensure that
defence exports reach Rs 50,000 crore by 2029. Given the current pace of progress, I am confident that we
will succeed in achieving the targets,” he said.
Shri Rajnath Singh stressed that the Government, in the last 12 years, has changed the “outdated mindset”
of preferring imports over domestic manufacturing for the security needs of the country. “Since 2014, it
has been our endeavour to strengthen defence preparedness through indigenous production of advanced
weapons and technologies, with focus on minimising import dependence. We’ve built a defence industrial
ecosystem within the country to fulfill domestic as well as international requirements,” he said.
Raksha Mantri underlined that the Government’s vision of transforming the defence sector is rooted in a
firm belief in the nation’s potential and capabilities, in contrast to the approach of the previous
government. Describing Aatmanirbharta in defence as the most significant initiative undertaken by the PM
Modi-led Government, he stated that India has not only modernised its defence sector but has carried out a
major transformation that represents a journey from dependency to self-reliance, and from being a
consumer to becoming a producer.
“A nation’s true strength is not measured solely by the size of its military. It depends on its ability to cater
to its own needs during times of crisis and providing the soldiers with state-of-the-art weaponry to boost
their morale. If a country relies on other nations for weapons, ammunition, navigation systems, missiles,
radars, drones, and other warfare-related necessities, its strategic and military autonomy becomes
constrained. We’re continuously striving to change this situation,” stated Shri Rajnath Singh.
Elaborating further, Raksha Mantri said the Government has undertaken wide-ranging reforms to
strengthen India’s defence innovation and manufacturing ecosystem by simplifying defence exports
through initiatives such as the Defence EXIM Portal, online approvals, the Open General Export Licence,
streamlined quality certification procedures, the Green Channel policy, and self-certification.
Shri Rajnath Singh underlined that the establishment of defence industrial corridors in Uttar Pradesh and
Tamil Nadu is another pathbreaking reform to achieve the goal of self-reliance. He stated that advanced
defence manufacturing is being carried out within these corridors, with many companies integrating into
global supply chains. “Investments worth approximately Rs 70,000 crore have been proposed for these
two defence corridors, with around Rs 10,000 crore already invested. This has created new employment
opportunities for the youth. The UP Defence Industrial Corridor, in particular, has emerged as a powerful
example of the success of ‘Atmanirbhar Bharat’,” he said.
Enumerating the reforms introduced in defence acquisition, Raksha Mantri highlighted that the steps are
aimed at ensuring that Indian industries reap the benefits of defence modernisation. “Seventy-five percent
of the budget allocated for defence modernisation has been earmarked for procurement from Indianindustries. Under the new Defence Acquisition Procedure (DAP), priority is being given to mechanisms
such as ‘Buy Indian-Indigenously Designed, Developed & Manufactured’. This new DAP, to be unveiled
this year, will provide fresh momentum to domestic defence production,” he said.
Shri Rajnath Singh stressed that achieving self-reliance requires a robust ecosystem for research,
development, and innovation, led by start-ups, MSMEs, and young innovators. Highlighting initiatives
such as Innovations for Defence Excellence (iDEX), iDEX Prime, and Acing Development of Innovative
Technologies with iDEX (ADITI) scheme, he pointed out that the Government has significantly enhanced
financial support for defence innovation. He mentioned that procurement worth over Rs 2,400 crore has
been approved from start-ups and MSMEs, and projects worth more than Rs 1,500 crore have been
sanctioned for new technologies. “676 start-ups and innovators have been engaging through iDEX, with
551 contracts signed as of March 2026. Today, start-ups across the country are working on drones,
artificial intelligence, quantum technology, cybersecurity, robotics, and cutting-edge defence technologies.
From only a few dozen start-ups in the defence sector in 2018, the number today has crossed 2,000,” he
added.
Raksha Mantri elucidated that the idea of Aatmanirbharta begins with a shift in mindset that transforms
policymaking and the system, ultimately impacting the industry. “When the industry transforms,
production increases; and when production rises, the nation gains self-confidence. It is a cycle; without
setting it in motion, it is impossible to make India’s defence capabilities self-reliant,” he said.
Shri Rajnath Singh said that the corporatisation of the Ordnance Factory Board was aimed at making the
factories more technology-friendly in view of the changing times and evolving needs. “The objective was
to increase output, and enhance accountability. The decision was taken to bolster national security, while
safeguarding the interests of the employees. The results are evident today. These factories have
transformed from loss-making entities into profit-making units,” he said.
Raksha Mantri termed India’s youth of today as not merely job seekers, but technological partners in
ensuring national security. He highlighted that DRDO has evolved into a national innovation platform
connecting industry, academia, startups, and scientists, contributing to a vibrant defence industrial
ecosystem comprising DPSUs, private industry, over 17,000 MSMEs, and thousands of supply units
across the country.
Shri Rajnath Singh asserted that, today, India is not merely manufacturing defence equipment for itself, it
is emerging as a credible global security partner, whose role is extending from the Indian Ocean to the
Indo-Pacific. He credited PM Modi’s vision and leadership that have transformed India’s global image.
Referring to PM Modi’s recent visit to Indonesia, Raksha Mantri termed it as a matter of great pride when
the President of Indonesia publicly acknowledged the remarkable impact of the welfare schemes rolled out
by the Indian Government and expressed his desire to replicate them in his own country. “There was a
time when India, in its pursuit of a development model, would attempt to emulate the US, Europe, or
Russia. The situation has now changed. Today, India has reached a stage where other nations are following
its policies. This marks the beginning of a new era,” he said.
Shri Rajnath Singh added that the Prime Minister's visit to Indonesia, Australia and New Zealand has
elevated India's diplomatic, economic, strategic, and cultural ties to new heights in the vital Indo-Pacific
region, ranging from cooperation on BrahMos Missile System and restoration of the Prambanan Temple in
Indonesia to uranium supplies from Australia and the doubling of trade with New Zealand.
Raksha Mantri emphasised that India’s defence diplomacy is no longer confined merely to strategic
cooperation; it now encompasses technical cooperation, industrial collaboration, and integration into
global supply chains. This transformation, he said, has been driven by Indian scientists, soldiers,
engineers, startups, MSMEs, industries, and most of all, the youth of the country.“This is the India of ‘Amrit Kaal’ which does not shy away from challenges but creates opportunities,
which not only ensures its own security but also makes constructive contributions to global peace and
stability. When the nation marks the centenary of its independence in 2047, the world will view India not
merely as the largest democracy, but also as a highly reliable, modern, and self-reliant defence power,”
Shri Rajnath Singh said.
Concluding his address, Raksha Mantri asserted that the Government has resolved to build an
Aatmanirbhar and Viksit Bharat, that is both strong and secure. “Our aim is to create a nation where
soldiers wield indigenous weapons and technologies, scientists have access to new opportunities, youth
possess the power of innovation, and industries have the capacity to compete globally. This is the resolve
for New India; this is the path to Viksit Bharat by 2047,” he stated.
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