Independence Day Exclusive: India's Defence Sector Is Beyond Securing Borders: HAL, BEL, BDL At Frontline

India's defence system has seen a remarkable journey over the past decade, with self-sufficiency and self-reliance being its main core agenda. Time skip to now: the defence budget is nearly 3-fold higher, while production has skyrocketed by 174%, and exports have climbed by a breathtaking 34 times. The defence sector of India has shifted its focus from import-driven to emerge as a frontrunner in export globally.

On the special occasion of the 79th Independence Day, Dr Ashok Kumar Mittal, Chancellor of LPU and MP, Rajya Sabha, told GoldReturns, "A strong defence sector is not only about securing borders, it is about allowing India to be a valued partner in establishing a stable and secure world."

The Rajya Sabha member believes India is on the verge of becoming not just self-sufficient in essential defence technologies but also a valued partner in the global market.

Over the past 11 years, the country's defence sector has only strengthened owing to strategic policies, technology innovation, procurement to exports and new energy adoption.

Defence Sector Budget:

The Prime Minister Narendra Modi-led government has been committed to strengthening its military foundations, with innovation at the center stage. The government is focusing on long-term preparedness with the development of indigenous platforms, new-age technologies, defence corridors and much more.

The defence budget for FY26 is at a record-breaking Rs 6.81 lakh crore, which is nearly 3-fold up from the Rs 2.53 lakh crore budget in FY14.

Defence Sector Record-Breaking Production:

As per data from the government, the country's defence production soared by 174% to Rs 1.27 lakh crore by the end of FY24, to a meager Rs 46,429 crore in FY15.

Public sector undertakings and private companies are both contributing to this new era of growth. From aircraft and missiles to surveillance systems and artillery, the range of indigenous products continues to expand, as per the ministry.

The order book of defence sector is also remarkable. In FY25 alone, the Defence Ministry inked at least 193 contracts that were worth Rs 2,09,050 crore, the highest ever in a year.

"India's defence sector has evolved from a primarily import-driven framework to a thriving hub of indigenous capacity, combining technological innovation with strategic self-reliance," Mittal said.

"Throughout the years, we've seen our armed services adapt to current challenges with agility, while our defence industry embraces research, production, and partnerships that boost national security," he added.

India Defence Exports:

While shifting focus from imports, strong policy reforms and a strong foundation for global outreach led to extraordinary growth in defence sector over the past 11 years. Once upon a time, in FY24, the defence export was merely at Rs 686 crore. Now, it has skyrocketed by 34 times to Rs 23,622 crore in 2024-25.

The Indian government aims to hit Rs 50,000 crore in exports by 2029.

How Can India Achieve Its Defense Export Target?

According to Mittal, "we are on the verge of becoming not only self-sufficient in essential defense technologies but also contributors to global peacekeeping and security initiatives."

"To maintain this pace, we must continue to promote innovation, develop skilled individuals, and strengthen collaboration among the military, university, and business."

Furthermore, he said, " A strong defence sector is not only about securing borders; it is about allowing India to be a valued partner in establishing a stable and secure world. In an incredible defence-academia collaboration, LPU recently collaborated with HQ 11 Indian Army on High-Impact Defense Technology Innovations."

Top Players Of Defence Sector:

Currently, there are three PSU defence companies with zero debt at the forefront of the thriving industry. These are Hindustan Aeronautics (HAL), Bharat Dynamics (BDL) and Bharat Electronics (BEL). These three behemoths are among the top 30 of world's largest defence companies, with two of them being in the top 15 list.

Hindustan Aeronautics (HAL) is the 11th largest defence company in the world and the largest in India. Its market valuation is around $34.76 billion.

Meanwhile, Bharat Electronics (BEL) is the thirteenth largest defence company in the world, with a market cap of $32.11 billion.

Additionally, Bharat Dynamics (BDL) is the 30th largest defence company in the world, with a valuation of $6.60 billion.

HAL holds a Maharatna status, while BEL is a Navratna, and BDL holds Miniratna status.

As per the Inc42 Daily Brief, India is projected to become a $19 billion defence tech powerhouse by 2030. Amid this, AI in defence is going to be the country's next big bet, with 89% of the homegrown defence tech startups already claiming to power their offering with this emerging technology.

Going ahead, all eyes will be on defence deal between US and India. The ties between the US and India have strained over the past weeks after President Donald Trump imposed an extra 50% on Indian goods.

However, at the latest, reports stated that an American defence policy team will visit in Delhi, where officials will discuss strengthening their defence ties.

Recently, Defence Ministry sources denied the reports of India halting defense purchase talks with the US due to tariff tensions. Sources told GoodReturns, "The news reports on India pausing the talks related to defence purchases with the US are false and fabricated. It is clarified that the various cases of procurement are being progressed as per the extant procedures."

Also, the Ministry of External Affairs' official spokesperson, Randhir Jaiswal, said, "India and the United States share a comprehensive global strategic partnership anchored in shared interests, democratic values, and robust people-to-people ties."