India's Growing Defence Capabilities Highlights

Summary:

On August 22, 2025, Raksha Mantri Shri Rajnath Singh delivered a significant address at the World Leaders Forum in New Delhi, emphasizing India's perspective on the global order as a journey towards shared harmony rather than a competitive dominance. He reinforced India's commitment to bolster its defense capabilities amid rising regional challenges, particularly in relation to Pakistan.

Key Highlights:

• Shri Rajnath Singh described India's ethos, stating: "The measure of strength is not in the ability to command, but in the capacity to care; not in the pursuit of narrow interest, but in the commitment to the global good."
• Reflecting on Pakistan Army Chief's comments equating their economy to a "dump truck," he emphasized that India's economic growth is a result of hard work and effective policies, contrasting it with Pakistan's challenges and failures.
• He reiterated India's determination to project its military might through initiatives like Operation Sindoor, ensuring that India’s strength is acknowledged and respected.

Defence Sector Developments:

• Defence exports have increased from Rs 686 crore in 2013-14 to Rs 23,622 crore in 2024-25, showcasing a nearly 35-fold growth.
• The goal set by the government is to achieve defence exports of Rs 30,000 crore in FY 2024-25, aiming for Rs 50,000 crore by 2029.
• Domestic defence production surged from Rs 40,000 crore in 2014 to over Rs 1.5 lakh crore in 2024-25, with projections to near Rs 2 lakh crore in the current fiscal year.
• The government has released five positive indigenisation lists covering 509 platforms and systems mandatorily to be manufactured in India. Over 5,000 strategically important subsystems, spares, and components have also been identified by Defence Public Sector Undertakings (DPSUs).

Indigenous Capabilities:

• Hindustan Aeronautics Limited (HAL) secured orders of Rs 66,000 crore for 97 Tejas fighter aircraft, in addition to an earlier order of 83 aircraft valued at Rs 48,000 crore, showcasing indigenous capabilities.
• Steps are underway to develop fifth-generation fighter aircraft and engines in India.

Strategic Initiatives:

• The establishment of defence industrial corridors in Uttar Pradesh and Tamil Nadu aims to attract investments and promote growth in the defence sector.
• The Strategic Partnership model encourages private sector collaboration in building advanced defense platforms, including fighter jets and submarines.
• Innovations for Defence Excellence (iDEX) supports startups and MSMEs in defence technologies, enhancing indigenous developments.

Policy Reforms:

• FDI limits in defence have increased to 74% through the automatic route and up to 100% via the government route.
• Transfer of Technology from DRDO is available free of cost to encourage local development.

Economic Growth:

• Under Prime Minister Narendra Modi, the defence budget rose from Rs 2.53 lakh crore in 2013-14 to nearly Rs 6.22 lakh crore in 2024-25, with plans for further expansions post-Operation Sindoor.
• India is recognized as the fastest-growing economy, currently the fourth largest globally, with exports increasing by 76% over the past decade.

Demographic Advantage:

• With 65% of the population under the age of 35, India has a significant demographic advantage, accompanied by a robust startup ecosystem comprising over 100 unicorns.

Conclusion:

The Raksha Mantri's address underscored India's resolve to strengthen its defense capabilities through indigenisation, significant policy reforms, and leveraging its economic growth and demographic dividend to emerge as a global defense supplier.

Important Points:

• Global order viewed as a shared journey; emphasis on harmony and mutual respect.
• Pakistan's economy contrasted with India's growth as a “confession” of its failures.
• Defence exports target of Rs 30,000 crore for FY 2024-25, Rs 50,000 crore by 2029.
• Domestic defence production rising significantly with a focus on indigenisation.
• Defence budget escalated significantly under current administration.
• Strategic initiatives and partnerships fostering continued growth and innovation in the defence sector.