Context:

India's rapid transition towards self-reliance in the defence sector has given a new direction to national security, industrial development and technological confidence. Defense Minister Rajnath Singh's announcement at the inauguration of new aircraft production lines of first Light Combat Aircraft (LCA) Tejas Mk1A at HAL's Nashik campus that the country's defense exports have now reached ₹25,000 crore is a strong confirmation of this transformation.

• • • While defence exports were only at Rs 1,000 crore a few years ago, today India is not only moving on the path of self-reliance but is also emerging as a reliable partner in the global defence supply chain. The target set by the Government of achieving domestic defence production of Rs 3 lakh crore and exports of Rs 50,000 crore by 2029 is a historic milestone towards realising the spirit of “Atmanirbhar Bharat”.
    • Over the past decade, major reforms, technological innovations, and policy changes have gradually transformed India’s defence landscape, marking the shift from being the world’s largest arms importer to an emerging global exporter.

Historical Background:

• • • At the time of Independence, India inherited a modest but structured defence industrial base with 16 ordnance factories and a skilled technical workforce. However, most of these units focused on maintenance and assembly, not on innovation or research. In 1958, the Defence Research and Development Organisation (DRDO) was established to promote indigenous research, but it suffered from limited funding and weak coordination with the armed forces.
    • Following the 1962 war with China, India turned heavily towards arms imports—mainly from the Soviet Union—to modernise its military. This import-driven approach persisted for decades, making India one of the world’s top arms importers and exposing vulnerabilities in technology dependence.

Building a Self-Reliant Defence Ecosystem:

• • • Over the past decade, India’s defence policy has undergone a major transformation aimed at reducing foreign dependence and boosting local manufacturing. The focus has shifted towards indigenous design, research, and production, supported by institutional reforms, new procurement procedures, and greater private sector participation.
    • Key milestones include the creation of the Chief of Defence Staff (CDS) and the Department of Military Affairs (DMA) to promote jointness among the Army, Navy, and Air Force. The success of recent joint operations, such as Operation Sindoor, has demonstrated how these reforms have improved coordination and operational efficiency.

Structural Reforms: India’s security architecture has been restructured to address modern threats and streamline decision-making. Three tri-service agencies were created between 2018 and 2019:

·         Defence Cyber Agency – handles military cyber operations and cyber warfare.

·         Defence Space Agency (DSA) – focuses on the military use of space for communication, navigation, and surveillance.

·         Armed Forces Special Operations Division (AFSOD) – provides a rapid-response capability for strategic missions across domains.

All three function under the Integrated Defence Staff and report to the CDS. Another major reform underway is the creation of Integrated Theatre Commands, which will further enhance joint operations.

Defence Procurement Reforms: The Defence Acquisition Procedure (DAP) 2020 replaced the earlier version of 2016 with the goal of promoting self-reliance and transparency in acquisitions. Key features include:

·         Increased indigenous content requirement to 50% or more in several procurement categories.

·         Introduction of “negative import lists”, banning the import of over 500 defence items to encourage domestic sourcing.

·         Requirement for foreign vendors to set up local manufacturing or joint ventures in India.

As a result, India’s defence production has reached ₹1.27 lakh crore (2023–24) — the highest ever — with a growing share coming from the private sector.

Major Policy Reforms and Defence Corridors:

The corporatisation of the Ordnance Factory Board (OFB) in 2021 was a landmark reform. The 41 ordnance factories were reorganised into seven new Defence Public Sector Undertakings (DPSUs) for better efficiency and accountability.

Further, the government established two Defence Industrial Corridors (DICs) — in Uttar Pradesh and Tamil Nadu — to attract investment, promote innovation, and strengthen the defence manufacturing ecosystem. Investments of over ₹8,600 crore have already been made, with plans to attract more than ₹50,000 crore in the coming years.

·        Rise in Defence Exports: India’s defence exports have grown nearly 15 times in the past decade — from around ₹1,500 crore in 2016–17 to ₹23,622 crore in 2024–25. Exports include radar systems, missiles, artillery guns, and patrol vessels supplied to friendly nations such as Vietnam, the Philippines, and several African countries.

o   This transformation aligns with India’s vision of becoming a net defence exporter and a reliable strategic partner, especially in the Global South. The government now targets ₹50,000 crore in defence exports by 2028–29.

·        Private Sector Participation and Start-Up Ecosystem: The once state-dominated defence sector now welcomes private companies and start-ups. Firms like Tata, L&T, Mahindra Defence, Adani Defence, and Bharat Forge have entered areas such as aerospace, drones, armoured vehicles, and defence electronics.

o   The iDEX (Innovations for Defence Excellence) initiative has supported over 400 start-ups working on cutting-edge technologies like artificial intelligence (AI), robotics, smart weapons, and cybersecurity. Its sub-scheme, ADITI (Acing Development of Innovative Technology with iDEX), focuses on developing critical and strategic technologies.

Technological Advancements Driving India’s Defence Growth:

1. Artificial Intelligence (AI)

AI applications are being used in predictive maintenance, decision-making, and target identification. The Ministry of Defence launched 75 AI-based products in 2022, and about USD 12.6 million annually has been earmarked for AI projects.

2. Autonomous Systems and Robotics

India is advancing in unmanned systems, with innovations such as the ‘NETRA’ UAV and DRDO’s ‘Daksh’ robot, used for surveillance and bomb disposal.

3. Cybersecurity and Electronic Warfare

The Defence Cyber Agency, NTRO, and DIA are developing cyber defence capabilities. DRDO’s ‘Shakti’ electronic warfare system has enhanced India’s ability to disrupt enemy communications and radar networks.

4. 3D Printing and Advanced Manufacturing

Additive manufacturing is revolutionising production. Partnerships between HAL and Wipro3D have enabled the 3D printing of metal components for aero engines, reducing production time and cost.

5. Quantum Technologies

The newly established Quantum Technologies Research Centre (QTRC) under DRDO focuses on ultra-secure communication. In collaboration with IIT Delhi, it has successfully tested quantum secure communication over 1 km.

6. Indigenous Defence Platforms

India’s indigenous platforms like INS Vikrant, Project 17A frigates, Tejas LCA Mk-1A, and ATAGS artillery guns highlight growing domestic capabilities in complex defence systems.

Persistent Challenges:

• • • Around 36% of India’s defence procurement still depends on imports.
    • Critical technologies like jet engines, radars, missile seekers, and stealth systems remain foreign-sourced.
    • Cybersecurity gaps and shortage of skilled professionals (nearly 8 lakh experts needed) weaken digital defence.
    • Private sector integration with procurement processes remains slow due to bureaucracy and regulatory hurdles.
    • Defence corridors have yet to reach their full potential due to fluctuating military requirements and inconsistent policy implementation.
    • India’s share in global arms exports remains modest despite rapid growth, hindered by concerns over execution timelines and after-sales support.

The Road Ahead:

1.       Encourage Public–Private Collaboration – Joint ventures between DPSUs and private firms can accelerate innovation and production efficiency.

2.      Focus on Technology Transfer and R&D – Increased investment in indigenous research, particularly in high-end technologies like engines and sensors, is essential.

3.      Enhance Defence Exports – India must build a credible reputation for timely delivery and quality assurance to expand its export markets in Southeast Asia, Africa, and Latin America.

4.     Defence Skill Development – Setting up specialised training institutes and a Defence Talent Academy can create a skilled workforce in defence engineering, AI, and cybersecurity.

5.     Integrated Theatre Commands – Fast-tracking their implementation will improve coordination and resource sharing among services.

Conclusion:

India’s defence sector is undergoing a historic transformation — from being an arms importer to becoming an emerging global defence hub. The Aatmanirbhar Bharat initiative has redefined national security by merging self-reliance with strategic autonomy. While challenges remain in achieving complete technological independence, India’s growing innovation ecosystem, private sector participation, and export success have positioned it as a confident, capable, and self-reliant power in the global defence landscape. If sustained with consistent investment, skill development, and policy support, India’s vision of becoming a builder’s nation rather than a buyer’s market will soon be a reality.