The Ministry of Defence outlined India’s evolving approach to national security on October 15, 2026, emphasising a move from diplomatic responses to direct action against terrorism, while also announcing major progress in building domestic defence manufacturing capacity. Raksha Mantri Rajnath Singh, speaking at a Defence Conclave in New Delhi, discussed cross-border terrorism, emerging security threats and India’s ambition to become a defence technology exporter.
Key facts
- Defence production has risen to Rs 1.78 lakh crore in 2026 from Rs 40,000 crore in 2014
- Defence exports reached Rs 39,000 crore in 2025-26, up from Rs 686 crore in 2013-14
- India defence products now exported to nearly 100 countries
- Over 500 companies now engaged in defence manufacturing, up from a much smaller base in 2014
- 159 of 175 ammunition variants (over 90 per cent) now produced domestically
- More than 2,000 defence startups operating as of 2026, compared to a few dozen in 2018
- iDEX scheme has engaged 676 startups and facilitated 551 contracts as of March 2026
- Ministry approved procurement worth over Rs 2,400 crore from startups and MSMEs
- Since 2014, most terrorists neutralised within one year of taking up arms
- 75 per cent of defence modernisation budget allocated for domestic procurement
Counter-terrorism doctrine and security threats
The Raksha Mantri characterised India’s recent military operations—Operation Sindoor, the 2019 Balakot airstrike and the 2016 surgical strikes—as marking a fundamental change in policy. Rather than limiting itself to diplomatic protests against cross-border terrorism originating from Pakistan, India now adopts a proactive strategy to eliminate terrorist organisations at their source. Singh reaffirmed that any future terrorist attacks from Pakistani territory would receive a stronger response, while also stressing that India’s preference for peaceful resolution should not be interpreted as reluctance to defend itself militarily.
He identified emerging security threats that go beyond organised terrorist groups. The “5D Security Threat” framework encompasses disinformation, destabilisation, disruption, deception and destruction. More concerning are lone-wolf attacks and what he termed “white-collar terrorism”—attacks carried out by individuals working within critical systems such as aviation. Singh cited a recent incident in which an airline co-pilot attempted to crash a passenger aircraft; the crew’s intervention prevented the attack. He stressed that countering such threats requires not only security agency capability but also active vigilance from ordinary citizens and professionals in sensitive positions.
Defence production and self-reliance
The government has substantially expanded domestic defence manufacturing. Defence production grew nearly fourfold from Rs 40,000 crore in 2014 to Rs 1.78 lakh crore by 2026. Equally significant is the export of defence equipment: exports jumped from Rs 686 crore in 2013-14 to Rs 39,000 crore in 2025-26, with Indian defence products now reaching nearly 100 countries. The government aims to achieve defence production of Rs 2 lakh crore in 2026 and Rs 3 lakh crore by 2029, with defence exports reaching Rs 50,000 crore by 2029.
This expansion reflects structural reforms in defence procurement and manufacturing. The defence sector is no longer confined to public sector units and defence public sector undertakings. Private companies, more than 16,000 micro, small and medium enterprises, and over 2,000 defence startups now contribute to the ecosystem. The government has designated 509 items for indigenisation across defence equipment and weapon systems, with 3,255 items already indigenised by defence public sector undertakings.
Indigenous weapons and innovation schemes
Singh highlighted India’s growing technological self-reliance in defence systems. Operation Sindoor demonstrated the effectiveness of indigenous systems including the Akash missile and BrahMos cruise missile. In ammunition production, India now manufactures 159 of 175 variants used by the defence forces, representing over 90 per cent self-reliance. India has also become the fourth country globally to establish a national standard for bulletproof jackets aligned with international norms, with exports of such jackets reaching over 100 countries.
To foster innovation, the government operates iDEX (Innovations for Defence Excellence), iDEX Prime and the ADITI scheme, which provide funding and support to startups and small innovators. As of March 2026, these initiatives had engaged 676 startups and innovators with 551 active contracts. The Ministry of Defence has approved procurement of goods and services worth Rs 2,400 crore from startups and MSMEs, and sanctioned projects exceeding Rs 1,500 crore for new technology development. Defence startups are working in areas including drones, artificial intelligence, quantum technology and cybersecurity.
Defence strategy: Smart power approach
Singh called for integrating what he termed “hard power” and “soft power” into a “smart power” defence strategy. This means combining precision-guided weapons and advanced systems with cost-effective alternatives, merging human intelligence with artificial intelligence, and deploying both sophisticated and agile, adaptable technologies to address evolving threats. He attributed India’s growing defence confidence to reforms in licensing, ease of doing business in the defence sector, and simplified export procedures including the Defence EXIM Portal and Green Channel policy.
What this means for you
Students and researchers interested in defence technology now have expanded opportunities through government-backed innovation schemes. Private companies and startups can participate more easily in defence manufacturing and supply chains. Citizens working in critical infrastructure—aviation, power, transport—are called upon to remain alert to insider threats. The expansion of domestic defence production may eventually reduce India’s dependence on imported military equipment, potentially affecting defence spending patterns and defence policy independence.