India’s defence start-up boom is outrunning its talent pipeline

2026 has proven to be the best year on record for India’s defence manufacturing sector, with the annual defence production reaching an all-time high of ₹1.78 lakh crore in FY 2025-26. Defence exports reached a record ₹38,424 crore in FY 2025-26, which is 62.66% higher than ₹23,622 crore the previous year, with Indian-made equipment now being exported to more than 80 countries.

Indigenous defence production has quadrupled, rising from ₹46,429 crore in FY 2014-15 to ₹1.78 lakh crore in 2025. The government has set its sights on ₹3 lakh crore in annual defence production and ₹50,000 crore in exports by 2029, alongside achieving roughly 88% self-sufficiency in ammunition production. Moreover, the share of the private industry is also expanding rapidly. Its contribution increased to 24% of total output (around ₹42,000 crore) in FY 2025-26, up from 22% the previous year.