Archive · 21 Jan 2026
India's Defence Sector Sees Growth and Global Expansion
The Federation of Indian Chambers of Commerce & Industry (FICCI) wants the Indian government to give more money to the Defence Research and Development Organisation (DRDO) in the upcoming Budget 2026.
The DRDO's budget was already increased by 12.4% to Rs 26,816.82 crore for the financial year 2025–26, but FICCI thinks this is not enough.
They want an additional Rs 10,000 crore.
This extra money would help DRDO focus on important research and work with private companies to develop new technologies for the defence sector.
FICCI believes this will make India stronger in defence technology.
Additionally, the Ministry of Defence (MoD) is revising the Defence Acquisition Procedure 2020 to simplify procurement and boost indigenous manufacturing.
India has also deepened its strategic partnership with the UAE, signing a $3 billion LNG supply agreement and a Letter of Intent for a Strategic Defence Partnership.
India's defence production has grown significantly, from Rs 53,000 crore in 2015-16 to Rs 1,50,600 crore in 2024-25, with defence exports rising from Rs 2,100 crore to Rs 26,000 crore in the same period.
This growth reflects stronger domestic manufacturing and private-sector participation, positioning India as an emerging global defence player.
FICCI demands Rs 10,000 crore additional funding for DRDO in Budget 2026.
DRDO's budget increased by 12.4% to Rs 26,816.82 crore in FY 2025–26.
Funding to focus on fundamental research and frontier technologies.
Collaboration with private sector through DRDO's Technology Development Fund.
India's defence production has grown from Rs 53,000 crore in 2015-16 to Rs 1,50,600 crore in 2024-25, with exports rising from Rs 2,100 crore to Rs 26,000 crore.
- Who
- Federation of Indian Chambers of Commerce & Industry (FICCI), Defence Research and Development Organisation (DRDO), Ministry of Defence (MoD), India and UAE
- What
- Demand for increased funding for DRDO, revision of Defence Acquisition Procedure 2020, and strategic defence partnerships
- When
- FY 2025–26, with the revised DAP expected to be implemented from April 1, 2027
- Where
- India, with defence exports primarily to Myanmar, Sri Lanka, and Mauritius
- Why
- To strengthen DRDO in developing new technologies, simplify procurement processes, and boost indigenous defence manufacturing and global partnerships
- Budget Increase
- 12.4% increase to Rs 26,816.82 crore for DRDO in FY 2025–26
- FICCI's Demand
- Rs 10,000 crore additional funding for DRDO
- Focus Areas
- Fundamental research, frontier technologies, and Deep Technology
- Collaboration
- Private sector involvement through DRDO's Technology Development Fund
- Industry Body
- FICCI (Federation of Indian Chambers of Commerce & Industry)
- Defence Production Growth
- From Rs 53,000 crore in 2015-16 to Rs 1,50,600 crore in 2024-25
- Defence Exports Growth
- From Rs 2,100 crore in 2015-16 to Rs 26,000 crore in 2025-26
- Major Export Recipients
- Myanmar (31%), Sri Lanka (18%), Mauritius (11%)
