The second-largest military force in the world, the Indian Defense sector, is on the verge of transformation. India is third in the world for military spending, with its defence spending making up 2.15% of the GDP of the nation. By 2025, GOI hopes to have a revenue of USD 25 billion, including an export of USD 5 billion in goods and services related to aerospace and defence. Two Defense Industrial Corridors have been developed by the government in Tamil Nadu and Uttar Pradesh. Defense Public Sector Undertakings (DPSUs) and Ordinance Factories (OFs) were gradually established to take on the role of designer and integrator of defence weapons and equipment under the purview of Department of Defence Production. Among 16 Defence Public Sector Undertakings (DPSU) the Hindustan Aeronautics Limited (HAL) is the largest DPSU and it tops the production with Rs.19911.5 crores in 2020 – 2021 followed by Bharat Electronics Limited (BEL) of Rs.13947 crores to Indian Defense. In todays concern, we have competent DPSUs that are able to establish standards for the private sector in the manufacturing of defence goods because significant funds have already been invested in building competence in certain domains. Facilities, knowledge, and personnel developed by DPSU with public financing must be used to the best of the nations capacity as we move towards self-reliance and export capability in the acquisition of defence.