According to the Global Power Index, the Indian defence sector ranks fourth in terms of firepower with a score of 0.0979 (with 0.0 being the perfect score).

INR 6,21,540.85 Cr

Defence budget in the FY 2024-25, 13.04% of the total Union Budget

$21.74 Mn

Total FDI for defence industries since April 2000

4th

Highest military expenditure globally in 2023

US$ 34.7 billion

Target for India’s defence manufacturing by FY29.

52 satellites by 2030

Planned deployment to enhance space-based surveillance, enemy tracking, and real-time operational coordination for the armed forces.

430 iDEX contracts

Signed as of February 2025, involving 619 startups & MSMEs across 549 problem statements.

2

dedicated Defence Industrial Corridors in the States of Tamil Nadu and Uttar Pradesh

IDDM

Focus on Indigenously Designed Developed and Manufactured (IDDM) category is expected to bring significant investments in defence R&D.

Ministry of Defence

+91-11-23019474

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Provides the policy framework and wherewithal to the Armed Forces to discharge their responsibilities in the context of the defence of the country

Defense and Strategic Industries Association of India

+91-11-42420580

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One of the designated agencies of government to promote defense indigenization

Defence Research & Development Organisation

+91-11-23902481/87

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A network of 50 laboratories engaged in developing defence technologies covering various disciplines

Department of Defence Production

+91-11-23011587

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Deals with matters pertaining to defence production.

Investment Opportunities

  • US$130bn worth investment opportunities to emerge in the sector over the next 5-7 years.
  • Defence Procurement Procedure has been amended to encourage participation of foreign OEMs.
  • Above US$300mn worth of procurement will be necessary to be eligible for project offsets.

Key Investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

News

India’s defence production hits record INR 1.5 lakh crore in 2024–25

August 11, 2025

India’s annual defence production has crossed the INR 1.5 lakh …

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India joins 18 nations for Australia-led Talisman Sabre 2025 military exercise

July 15, 2025

India has joined 18 other nations in Talisman Sabre 2025, …

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Indian Navy to lead multilateral maritime exercise with African nations

April 1, 2025

The Indian Navy is set to participate in a major …

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