Operation Sindoor impact: India’s defence procurement is set to cross Rs 2 lakh crore this fiscal, says Rajnath Singh

Rajnath Singh also framed India’s broader economic journey, pointing out that service exports have more than doubled in the past decade while inflation has declined.

Defence Minister Rajnath Singh on Friday said India’s defence procurement is set to cross Rs 2 lakh crore this fiscal, with 75% of the defence budget earmarked for domestic companies, as part of the government’s push towards self-reliance in the sector.

Speaking at the Economic Times World Leaders Forum 2025 on the theme “Defence, Diplomacy, and Deterrence: Shaping India’s Strategic Horizon”, Singh said the current defence budget stands at Rs 6.21 lakh crore and will see a further rise following Operation Sindoor.

The minister stressed that the government’s priority is to empower Indian private players to compete with global defence giants, noting that “when you make in India, you make for the world.” He urged foreign companies to invest in India’s defence ecosystem, promising swift clearances and co-production opportunities.

Singh also framed India’s broader economic journey, pointing out that service exports have more than doubled in the past decade while inflation has declined. Citing economist Jagdish Bhagwati, he said India has transformed from a country once guided by the World Bank to one that now shapes global economic thinking.

On challenges facing Indian talent abroad, Singh acknowledged growing negative sentiments toward immigration but suggested it could be an opportunity. “If Indians face difficulties in universities or jobs overseas, we must focus on creating an environment that attracts them back,” he said. He added that India must evolve from being a consumer of technology to becoming a creator of technology.