Self-reliant India campaign
India’s defense sector has been changing rapidly in the last few years. Under the ‘Self-reliant India’ campaign, the country is now emphasizing on self-production and increasing exports of defense equipment instead of depending on imports. Its effect is now clearly visible in the figures also. India’s defense exports reached a record Rs 38,424 crore in the financial year 2025-26 (FY26) with a spectacular growth of 63%. This is about 25 times more than FY17.
Indian defense products reaching more than 80 countries
Defense products made in India are now being exported to more than 80 countries of the world. These include defense electronics, radar systems, missiles, ammunition, aerospace components and naval equipment.
Both government and private companies have played an important role in the increase in defense exports. The share of Defense Public Undertakings (DPSUs) in total defense exports in FY26 was 55%, which was 43.8% last year. Whereas the private sector contributed 45%. It is clear from this that the participation of private companies in the Indian defense industry is continuously increasing.
Record increase in defense production also
Along with exports, domestic defense production has also increased rapidly. India’s defense production reached Rs 1.5 lakh crore in FY25, almost three times what it was a decade ago. It is estimated that this figure would have increased to Rs 1.75 lakh crore in FY26.
Today about 65% of the country’s defense needs are being met by domestic production. Earlier, India had to depend on large-scale imports for defense equipment, but now the situation is changing with the promotion of indigenous production.
Export target of Rs 50,000 crore by FY29
The government has set a target of increasing defense exports to Rs 50,000 crore by FY29. For this, emphasis is being laid on indigenous technology, local production and increasing India’s share in the global supply chain.
Experts believe that in the coming years, Indian defense companies can get big orders from the international market, which will further accelerate the growth pace of this sector.
Investors eye Astra Microwave
Astra Microwave Products, a leading company in the defense and aerospace electronics sector, is preparing to take advantage of this emerging opportunity. The company manufactures radar, tactical systems and space electronics and exports it to countries like America, Israel and Singapore. About 12% of the company’s total revenue in FY26 came from exports. The company is now moving away from the old low-margin model and focusing on its intellectual property (IP) based products and high-value projects.
The order book of the company till March 31, 2026 was Rs 2,600 crore. Its revenue grew by 10.6% to Rs 1,163 crore and EBITDA increased by 24% to Rs 334 crore in FY26.
Strong possibilities are visible in defense sector in future also
Analysts believe that the steady growth in defense exports, the government’s self-reliance policy and increasing global demand are creating long-term opportunities for the Indian defense sector. In such a situation, investors are keeping an eye on the shares of defense companies and this sector can become the main attraction of the market in the coming years.
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