Privately owned companies are rapidly raising their share in the country’s defense manufacturing, RT India reports
India’s private sector players are increasingly taking up hardware and equipment manufacturing as the country ramps up defense production, seeking to reduce its reliance on costly imports, RT India reports.
India’s annual defense production surged to an all-time high of $18.64 billion in the financial year (FY) 2025-26. This is a 15.6% increase on the previous financial year’s $16.13 billion, and a 110% surge since FY 2020-21, when the figure was $8.86 billion.
The private sector’s share of this ramp-up is noteworthy, considering defense production has traditionally been a preserve of India’s public sector. The private sector contributed nearly a fourth, or 24%, of the total production in FY25-26, up from 22% in FY 2024-25, official figures show.
India was the second largest arms importer globally in the 2021-2025 period, with a 8.2% share. Russia is India’s primary supplier, accounting for 40% of its arms imports.
From cutting-edge drones to deep-tech supply chains, and precision electronics to autonomous systems, private players are now producing a whole gamut of defense equipment for the Indian military.
Indigenous innovation is also steadily becoming a key pillar of military modernization in line with the country’s Make-in-India initiative.
Considering that high-value programs such as the Advanced Medium Combat Aircraft stealth fighter project are reportedly being offered to private firms to bid for, the intent becomes clear, former vice chief of the Indian Army, Lt. Gen. Philip Campose, told RT.
New Delhi is now even mulling opening up ballistic missile production to private players. It was reported earlier this month that Adani Defence & Aerospace, owned by billionaire Gautam Adani, will set up South Asia’s largest private-sector missile ecosystem in the central Indian state of Madhya Pradesh, to strengthen indigenous missile capabilities.
An example of this private sector bounce is Botlab Dynamics, an IIT Delhi startup, which has expanded into military technology through its defense vertical Vyod.
Its flagship platform, the Atri Nano Drone, weighs around 250 grams and offers real-time situational awareness on the battleground with a 2-km range, 30 minutes of endurance, thermal imaging, and encrypted live video.
The drones, which can aid troops to identify threats without exposing themselves to danger, take just seconds to deploy.
The Indian Navy and Army have such surveillance drones in operation. Behind every drone lies an extensive supply chain of small businesses and specialized manufacturers across India, RT reported.
Amid India’s renewed push for military modernization following last year’s brief clash with Pakistan, the role of these deep tech start-ups is becoming more important than ever for the country.
