India is continuously increasing its defense capabilities. Meanwhile, the country has achieved a major success in the direction of self-reliance in the defense sector. The country’s defense production has reached a record level of Rs 1.78 lakh crore for the first time in the financial year 2025-26. An increase of 15.6 percent has been registered in comparison to last year. The role of private defense companies has been most important in this achievement.
According to the data, the contribution of the private sector in the total defense production was about Rs 42,000 crore, which is the largest share so far. India’s defense industry is rapidly moving towards self-reliance, which is a big thing for the country.
Demand increased after Operation Sindoor
After Operation Sindoor, the Indian Army’s need for modern weapons and indigenous defense systems increased rapidly. Along with this, the new policies of the government and changes made in the Defense Procurement Procedure (DAP-2026) have created new opportunities for private companies.
Under the new policy, the defense procurement process has been simplified and the minimum limit of indigenous content has been increased to 60 percent.
Private companies get big orders
- The country’s leading private defense companies are no longer limited to just making parts, but are developing complete weapon systems.
- Bharat Forge bags order worth Rs 1,661.9 crore for supply of over 2.55 lakh Close Quarter Battle (CQB) carbines.
- The company won another big contract worth Rs 4,140 crore for the supply of 184 Advanced Towed Artillery Gun Systems (ATAGS).
- Tata Advanced Systems and Bharat Forge are working together on the ATAGS project worth about Rs 6,900 crore, which is one of India’s largest indigenous artillery procurement programs.
Increased focus on drones and new technologies
Tata Advanced Systems, Larsen & Toubro (L&T) and Adani Defense are now rapidly expanding their presence in the manufacturing of drones, unmanned warfare systems, naval equipment and modern weapons. There is also tough competition among these companies for the Medium Altitude Long Endurance (MALE) drone project worth about Rs 30,000 crore.
Major contribution of private companies in defense exports
India’s defense exports reached a record level of Rs 38,424 crore in the financial year 2025-26. About 45 percent contribution in this was from private companies. Parts of BrahMos missile, Pinaka rocket system, drones and modern weapons made in India are now being exported to more than 80 countries.
Startups and MSMEs also benefited
Hundreds of startups and MSME companies are also getting involved in defense production through the government’s iDEX scheme. These companies are developing equipment and technology required for weapons and defense systems. The increasing participation of the private sector will play an important role in making India among the leading countries of the world in the field of defense production and exports.
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