Private companies now account for 21% of India’s total defence production, contributing to the sector’s growth, which reached INR 1.27 trillion (USD 15.2 billion) in the financial year 2023-24, according to a press release from the Ministry of Defence. More than 430 licensed private firms and approximately 16,000 small and medium-sized enterprises are engaged in manufacturing military platforms, including artillery systems, combat aircraft, and naval vessels.
To support domestic defence manufacturing, two Defence Industrial Corridors have been established in Uttar Pradesh and Tamil Nadu. As of February 2025, these corridors have attracted investments exceeding INR 86.58 billion in six nodes across Uttar Pradesh and five nodes in Tamil Nadu. A total of 253 memorandums of understanding have been signed, with potential investments estimated at INR 534.39 billion.
Key defence projects produced domestically include the Light Combat Aircraft (LCA) Tejas, the Arjun Main Battle Tank, the Akash Missile System, and various naval platforms. The government has set a target of INR 3 trillion in total defence production by 2029, with an increasing role for private sector participation and infrastructure expansion through the industrial corridors.