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India Expands Defence Indigenisation With Rs 29,100 Crore R&D
India wants to make more military equipment inside the country instead of buying it from abroad.
The government has increased money for defence research to Rs 29,100.25 crore in 2026-27.
It is also allowing private companies, startups and universities to help develop military technology.
Thousands of defence items have been identified for possible production in India.
New projects are focusing on artificial intelligence, drones, robotics and other advanced technologies.
A government program called iDEX has helped startups and smaller companies participate.
India’s defence production reached a record Rs 1.78 lakh crore in the latest financial year.
Defence exports also reached a record Rs 38,424 crore.
The government hopes to increase both production and exports further by 2029.
India allocated Rs 29,100.25 crore for defence R&D in 2026-27, including Rs 17,250.25 crore for capital expenditure.
About 25% of the defence R&D budget has been opened to industry, startups and academic institutions since 2022-23.
Ten Positive Indigenisation Lists cover 5,521 defence items targeted for domestic production as of May 2026.
Defence production reached Rs 1.78 lakh crore and exports reached Rs 38,424 crore in FY2025-26.
The government aims to raise annual defence production to Rs 3 lakh crore and exports to Rs 50,000 crore by 2029.
- Who
- India’s Ministry of Defence, Defence Research and Development Organisation, Defence Minister Rajnath Singh, private companies, startups and academic institutions.
- What
- The government is expanding defence research, domestic manufacturing, private-sector participation and military exports.
- Where
- India, with initiatives and events referenced in New Delhi and an artificial-intelligence centre in Pune.
- When
- The latest allocation applies to 2026-27; production and export figures cited are for FY2025-26, with indigenisation data current to May 2026.
- Why
- To strengthen India’s domestic defence technology and manufacturing ecosystem and reduce dependence on imported military equipment.
Key facts
- Defence R&D allocation
- Rs 29,100.25 crore in 2026-27, including Rs 17,250.25 crore in capital expenditure.
- Private participation
- Around 25% of the defence R&D budget has been opened to industry, startups and academia since 2022-23.
- Indigenisation lists
- Ten lists cover 5,521 items as of May 2026.
- Defence production
- Rs 1.78 lakh crore in FY2025-26, up from Rs 1.54 lakh crore the previous year.
- Defence exports
- Rs 38,424 crore in FY2025-26, up from Rs 23,622 crore the previous year.
- iDEX participation
- 676 startups, MSMEs and innovators had joined the ecosystem by March 2026.
- 2029 targets
- Rs 3 lakh crore in annual defence production and Rs 50,000 crore in annual defence exports.
Sources
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