India is gradually improving its defence production capabilities with an emphasis on lowering imports and raising exports. MSMEs contribute to creating locally made defense solutions, a significant part of this process. The private sector has also grown significantly; in FY24, it accounted for 22% of defense production, the greatest level in nearly ten years. The Observer Research Foundation states that by 2025, India wants to produce $25 billion worth of defense and $5 billion worth of exports.