India, a nation of 1.47 billion people, has overtaken most nations to become the third-largest military power in 2025, behind only the United States and China. Operation Sindoor demonstrated indigenous weapons and anti-drone capabilities, while the government eyes a 20-25 percent increase in the defence budget for 2026 and aims to take defence exports to Rs 30,000 crore, the Zee News website reported.
Emphasis on self-reliance and modern technology is turning India into a formidable player in the global defence market.
The outgoing year 2025 proved to be a milestone for India’s defence sector. During changing global security challenges, the country displayed its military strength, strategic readiness and self-reliance. Australia-based Lowy Institute’s Asia Power Index 2025 ranks India as the world’s third-largest defence power after the United States and China.
According to the Global Fire Power website, India was still ranked as the world’s fourth largest military power in 2025, behind the U.S., China and Russia. India is a nuclear power. It has spent US$75 billion on defence in 2025. It has 2.19 million army with 2 aircraft carriers, 513 fighter jets, 45 warships and 18 submarines.
Experts attribute a major portion of this achievement to Operation Sindoor, where India deployed indigenous weapon systems and carried out record anti-drone operations, sending a message about its combat preparedness.
Along with operational achievements, international defence deals have accelerated India’s transition from an importer to an exporter of defence technology. Analysts say 2026 is poised to be an even more ambitious year for Indian defence.
With instability in neighbouring countries and a changing regional security landscape, India is expected to increase its defence budget by 20-25 percent.
According to the Zee News, the Ministry of Defence had declared 2025 as the year of reforms. Under the Aatmanirbhar Bharat (Self-reliant India) initiative, the country made strides in defence manufacturing and exports. Indigenous weapons systems, advanced drones, defence industrial corridors and record export deals have strengthened the nation’s position in the global defence market.
Defence Minister Rajnath Singh said during a recent programme that defence exports have increased nearly 35 times over the past decade. India’s target for March 2026 is approximately Rs 30,000 crore in defence exports, with a longer-term goal of Rs 50,000 crore by 2029. Last year (1924-2025), defence exports stood at around Rs 24,000 crore.
Today, India exports defence products to over 100 countries. Operation Sindoor reflected India’s commitment to self-reliance and demonstrated the country’s strategic capabilities to the world. This has encouraged many nations to consider Indian-made defence equipment.
Experts suggest that the 2026-27 budget could see an increase of over 25 percent in defence allocations to support these strategic requirements.
Operation Sindoor and global military trends highlight the importance of drones and advanced technology in future combat. AI-driven surveillance and autonomous systems are expected to become key focus areas for India in 2026.
With tensions along India’s borders, modern aircraft and advanced weapon systems will be essential, and deals involving Russia’s fifth-generation fighter SU-57 or defence procurements from the United States are possible. The Indian Navy is also set to expand its presence in the Indian Ocean with modern ships and weapons platforms.
To boost defence production and exports, India is developing dedicated infrastructure across the country. Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, with investments exceeding Rs 91,450 crore, are expected to create over 52,000 jobs and attract private investments. India also approved its first autonomous maritime shipyard dedicated to naval platforms.
According to the Indian Defence Research Wing website, the Indian Army has achieved a major milestone in defence self-reliance by indigenising 159 out of the 175 ammunition variants in its inventory, reaching an indigenisation level of nearly 91 percent. This development has significantly reduced India’s dependence on imported ammunition at a time when global insecurity and geopolitical tensions have disrupted international supply chains and exposed vulnerabilities in overseas sourcing.
Reforms in 2025 focussed on modernisation, innovation and streamlined procurement. The creation of joint theatre commands and emphasis on cyber-space and AI-driven warfare systems have simplified defence acquisitions exceeding Rs 1 lakh crore. These changes are expected to deliver measurable results in 2026, enhancing operational readiness and deploying indigenous platforms across the armed forces.
India’s defence production reached a record Rs 1.54 lakh crore in 2025, while exports grew by nearly 12 percent to Rs 24,000 crore. With over 65 percent of defence equipment now made domestically, the country, to a great extent, reduced import dependence, strengthened domestic manufacturing and enhanced competitiveness.
Government policies and the Make in India initiative have positioned India as a growing force in the global defence market.
It is not an exaggeration to say that the year 2025 witnessed tremendous growth in India’s defence ecosystem. Indigenous production, cutting-edge technology and international partnerships have made the nation more self-reliant than ever. Autonomous and unmanned systems are expanding rapidly, and a future-ready defence ecosystem is emerging to domestically meet majority of the armed forces’ needs.
With expectations of a 20-25 percent increase in the defence budget for 2026-27 and a continued push for private sector participation, India is set to reach unprecedented heights in defence production and exports. By March 2026, exports could cross Rs 30,000 crore, representing another milestone in India’s journey toward becoming a global defence powerhouse.
