Private sector steps up to power India’s military-industrial rise

Private sector is gaining strength in India's growing military industrial complex

For decades, India’s defence production was the domain of public sector giants. But that’s changing quickly.

For the first time, private sector companies, which includes several startups, are expected to account for nearly a quarter of the nation’s defence output--at 23.5 percent in FY25.

Backed by expanding defence expenditure, government incentives and a shift to self-reliance from import dependence, private sector players, such as the Tata group, Larsen & Toubro, Bharat Forge and Mahindra, and over 600 startups are stepping up to bolster India’s defence capabilities, which they were once shut out of.

The number of defence items indigenised has doubled between FY23 and FY25 to nearly 14,000, with participation from startups more than doubling during the period.

Moneycontrol breaks down how India’s military-industrial complex is transforming and what that means for the nation’s defence capabilities.