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India’s defence sector is undergoing a major transformation driven by the Atmanirbhar Bharat

India’s defence sector is undergoing a major transformation driven by the Atmanirbhar Bharat (self-reliance) initiative, shifting the country from being one of the world's largest importers to an emerging global hub for defence manufacturing and exports.Financials & BudgetThe sector is heavily backed by government spending and localized production initiatives:Union Budget Outlay: Allocated ₹7.84 lakh crore (US$88.7 billion) to the Ministry of Defence, the highest among all ministries.Domestic Production: Valued at over ₹1.27 lakh crore, with the target to achieve 70% self-reliance in weaponry by 2027.Export Surge: Defence exports have reached a record-high of over ₹23,622 crore, with products reaching more than 100 countries including the USA, France, and Armenia.Key Manufacturing SegmentsAerospace & Defense: Investments are approaching US$50 billion, anchored by major domestic entities like Hindustan Aeronautics Limited (HAL) for fixed-wing aircraft, rotorcraft, and UAVs.Naval Shipbuilding: Opportunities are estimated at US$38 billion for the construction of warships, submarines, and patrol vessels.Missiles and Artillery: Production is scaling up rapidly, led by systems like the Akash Missile System and Dhanush Artillery.Strategic & Policy ReformsDefence Acquisition Procedure (DAP): Focuses on streamlining military procurements and heavily favoring indigenous and private sector design and development.Defence Industrial Corridors: Two major corridors established in Uttar Pradesh and Tamil Nadu to attract investment and foster innovation.Private Sector Participation: The government has overhauled the former Ordinance Factory Board (OFB) into seven separate corporate entities and opened up ammunition manufacturing to private players, vastly improving army supply reserve
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