At a press briefing in New Delhi, Defence Minister Rajnath Singh revealed that India’s total defence manufacturing rose to Rs 1.78 lakh crore in FY 2025‑26, up from Rs 43,746 crore a decade earlier. Private‑sector firms accounted for roughly 24% of the output, contributing about Rs 42 000 crore, while state‑owned units supplied the rest.
The Production Linked Incentive (PLI) scheme, launched in 2020, has become the engine behind this leap. With an outlay of Rs 1.97 lakh crore across 14 sectors, cumulative investments surpassed Rs 2.40 lakh crore by early 2026, driving production and sales beyond Rs 20.41 lakh crore and exports over Rs 8.3 lakh crore. The scheme’s performance‑linked payouts have already generated more than 14 lakh direct and indirect jobs.
Electronics, the sector’s star, has eclipsed traditional powerhouses. Production surged from Rs 1.9 lakh crore in 2014‑15 to Rs 13.11 lakh crore in 2025‑26, while exports leapt from Rs 38,000 crore to Rs 4.24 lakh crore—a 165‑fold jump. Mobile phones now dominate, with production at Rs 6.27 lakh crore and exports at Rs 2.59 lakh crore, turning India into the world’s second‑largest handset producer and a net exporter. Foxconn, Tata Electronics, and Samsung are among the giants scaling up in Bengaluru’s bustling factory lanes, where a 28‑year‑old assembler, Raghav, now packs phones for overseas markets.
The semiconductor frontier is next, with the government earmarking Rs 70,000 crore for two new fabs by 2030, according to a briefing from NITI Aayog. The move aims to cut the country’s reliance on imports, which currently account for 95% of silicon wafers. Industry insiders say the new plants will also attract ancillary firms, spurring a ripple of investment across the supply chain.
As the PLI scheme’s next tranche rolls out, the Finance Ministry will vote on an expanded manufacturing policy on 15 October, expected to unlock an additional Rs 1.5 lakh crore in incentives. The policy will also set new benchmarks for local content and export targets, signalling a continued push towards self‑reliance and global integration.