India’s defence sector has seen major progress over the last decade. What was once mostly dependent on imports is now becoming a self-reliant and growing industry. The government has set an ambitious goal of achieving ₹3 lakh crore in defence exports by 2029, with Indian defence products already being exported to over 90 countries.

• This shift is part of a larger plan to strengthen India’s military and reduce dependence on foreign suppliers. The defence budget has increased significantly—from ₹2.53 lakh crore in 2013–14 to ₹6.81 lakh crore in 2025–26—showing the government’s strong focus on national security. Efforts like Make in India, the development of defence corridors, support for private companies, and investment in new technologies have all contributed to this transformation. Today, India is not only modernising its armed forces but also becoming a key player in the global defence market.

From Import Reliance to Record Output:

Over the last decade, India has undergone a dramatic shift in defence production. In 2014–15, domestic output stood at ₹46,429 crore. By 2023–24, this figure had soared to ₹1.27 lakh crore—a near 174 percent increase.

• This transformation isn’t accidental. The government, guided by a political vision and consistent reforms, consciously shifted focus to domestic procurement. This strategic pivot empowered both public sector undertakings (PSUs) and private players to build a robust manufacturing base spanning air, land, sea, and electronic systems.
• The momentum continued into 2024–25. The Ministry of Defence signed 193 contracts worth ₹2,09,050 crore—the highest ever in a single year. Remarkably, 177 of those contracts (₹1,68,922 crore) were awarded to Indian firms, reflecting a clear shift from imports to local production. This doesn’t just increase production—it creates jobs, sharpens technological capabilities, and strengthens the defence ecosystem at home.

Major pillars of indigenous defence development:

Defence Industrial Corridors:

Strategic defence manufacturing requires infrastructure. In response, India established two Defence Industrial Corridors:

• Uttar Pradesh and Tamil Nadu, covering 11 industrial nodes.
• As of February 2025, investment commitments stood at ₹8,658 crore, with 253 MoUs signalling an additional ₹53,439 crore in potential investment.

 The Positive Indigenisation Lists:

Policy is a powerful catalyst. India has released five “Positive Indigenisation Lists” that restrict imports and nudge domestic production. Covering 5,500+ line items, these lists had already seen 3,000 items indigenised by February 2025. These include:

• Artillery guns
• Assault rifles
• Corvettes
• Sonar systems
• Transport aircraft
• Light Combat Helicopters (LCHs)
• Radars
• Wheeled armoured platforms
• Rockets, bombs
• Armoured vehicles for command-posts and dozing

The Role of iDEX in innovation:

In April 2018, the Innovation for Defence Excellence (iDEX) programme was launched to energize defence innovation through grassroots inventors—MSMEs, startups, research institutions, and academia. Key highlights:

• Support through grants up to ₹1.5 crore per project.
• Total procurement of 43 items worth ₹2,400 crore from iDEX-supported entities.
• Allocation of ₹449.62 crore for FY 2025–26—including the ADITI sub‑scheme.
• 549 problem statements, 619 participants, and 430 contracts by February 2025.

Structural Policy Reforms & Investment Climate

• FDI liberalisation (Sept 2020): Automatic route up to 74 percent, government route above that. Total FDI since April 2000 stands at ₹5,516.16 crore.
• Tata Aircraft Complex, Vadodara (Oct 2024): To build C‑295 transport ships—40 out of the 56‑aircraft project are Indian‑made.
• Manthan (Aero India 2025): Defence innovation conclave in Bengaluru, connecting startups, investors, academia, and defence.
• Defence Testing Infrastructure Scheme (DTIS): Supports eight greenfield test facilities; seven already approved (UAS, EW, electro‑optics, communications).
• Domestic Procurement Emphasis: Under DAP‑2020, 75 percent of the FY 2025‑26 modernisation budget (₹1,11,544 crore) is reserved for domestic production.

India’s Defence Exports:

From ₹686 crore in 2013–14 to ₹23,622 crore in 2024–25, Indian defence exports have grown 34‑fold. The diversification and depth of exports signal India as a globally trusted defence innovator.

Key indicators from 2024–25:

• ₹15,233 crore from private sector, ₹8,389 crore from DPSUs (up from ₹15,209 crore and ₹5,874 crore respectively in 2023–24).
• 42.85 percent growth in DPSU exports.
• 1,762 export authorisations (16.9 percent increase), with 17.4 percent more exporters.
• Products exported include bullet-proof jackets, patrol ships, Dornier aircraft, Chetak helicopters, torpedoes.
• Reach extends to 100+ countries, including the US, France, Armenia.
• Significant milestone: BrahMos missile contract with the Philippines (Jan 2022), US$375 million.

Major Acquisitions & Indigenous Programmes:

1.       BrahMos Missiles – March 2024 contract worth ₹19,518.65 crore, plus ₹988.07 crore for ship-launched versions. Expected to generate 900,000 man‑days JV-level and 13.5 million man‑days in ancillary industries (MSMEs).

2.      MQ‑9B Drones – Purchase of 31 drones from the U.S. for long-range surveillance and precision roles.

3.      LCH Prachand Helicopters – March 28, 2025 contracts for 156 helicopters, worth ₹62,700 crore, with deliveries starting in three years. “Over 65% indigenous content” and 250 MSMEs involved—8,500+ jobs generated.

4.     Advanced Medium Combat Aircraft (AMCA) – In May 2025, the AMCA Execution Model approved; ADA to drive it via industry partnerships.

5.     KC‑135 Flight Refuelling Aircraft – First‑ever wet-lease for in‑service training; deployed within six months.

6.     ATAGS Artillery – Approved procurement of 307 guns and 327 gun towing vehicles (~₹7,000 crore). Co-developed by DRDO, Bharat Forge, TAS, range of 40 km, automatic loading; tested rigorously.

Challenges and Opportunities:

• Domestic Production: Maintaining momentum requires deepening R&D and scaling up production capacity. As India aims to hit ₹50,000 crore in exports by 2029, it must focus on technology parity with global players.
• Procurement Efficiency DAP‑2020’s domestic procurement push is welcome. Even so, bureaucracy and acquisition timelines can limit agility. Streamlined processes, transparent evaluation, and robust industry feedback will be critical.
• Innovation Ecosystem: iDEX has laid the groundwork. However, scaling from prototypes to full-scale production remains a challenge. Better incubation, testing support, finance, and market access are needed to bridge early-stage tech to defence-grade systems.
•  Skill Development: High‑end production demands a skilled workforce—especially in aerospace, avionics, digital systems, and systems integration. Defence corridors and testing hubs should be matched with vocational training and R&D education.
• Export Strategy: Exporting advanced systems—missile systems, UAVs, combat aircraft—requires not just quality but seamless global supply chains, export compliances, certifications, and diplomatic agreements. Partnerships with friendly countries, tech‑transfer pacts, and offset mechanisms will be key.
• Regional Security Dynamics: South Asia’s evolving threat environment (China, Pakistan, proxy networks) underscores the need for domestic defence readiness. Indigenous capabilities must be backed by strategic doctrine, diplomacy, and integrated warfare preparedness.

Conclusion:

India’s rising defence‑industrial capability is delivering on its ambition of becoming self‑reliant and globally competitive. The path from being a buyer to becoming a builder and exporter of defence systems is now well paved. Strategic clarity, supportive policies, infrastructure, investment, and innovation are all aligning. But ambition must meet action. India must now shift from scaling manufacturing to mastering high-end systems, from military‑only capability to dual‑use technologies, and from market insulation to global standards and partnerships. With clear political will and sustained reform, India can transcend its historical defence-import dependency and emerge as a global defence manufacturing powerhouse—stronger, safer, and truly Aatmanirbhar.