NEW DELHI: India’s defence production has reached unprecedented heights, marking a new era of self-reliance and technological advancement. With the launch of the “Make in India” initiative, the country has successfully transformed from an import-dependent nation to a global defence manufacturing powerhouse.
In the financial year 2023-24, India’s defence production hit a record ₹1.27 lakh crore, a testament to the country’s commitment to indigenization and military modernization.
Historically reliant on foreign defence suppliers, India has taken decisive steps to establish a robust domestic defence manufacturing sector.
The surge in defence production is backed by strategic policies aimed at boosting private sector participation, encouraging technological innovation, and ensuring the development of cutting-edge military platforms. The increase in the defence budget from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26 further underscores the government’s resolve to enhance military infrastructure and capabilities.
Key Defence Acquisitions and Approvals
1. Procurement of Light Combat Helicopters (LCH) Prachand
The Ministry of Defence has signed contracts with Hindustan Aeronautics Limited (HAL) for the acquisition of 156 LCH Prachand helicopters at a cost of ₹62,700 crore. The Indian Air Force will receive 66 helicopters, while the Indian Army will get 90. With over 65% indigenous content, the LCH project is set to generate over 8,500 jobs and involve 250 domestic companies, mostly MSMEs.
2. Wet Leasing of Flight Refuelling Aircraft (FRA)
In a first for the Indian Air Force, the Ministry of Defence has signed a contract to lease one KC-135 Flight Refuelling Aircraft (FRA) from Metrea Management. This will enhance the air-to-air refuelling capability of the Indian Air Force and Indian Navy, with delivery expected within six months.
3. Advanced Towed Artillery Gun System (ATAGS) Approval
The Cabinet Committee on Security (CCS) has approved the procurement of 307 ATAGS along with 327 High Mobility 6×6 Gun Towing Vehicles for 15 Artillery Regiments at a cost of ₹7,000 crore. Developed by DRDO in collaboration with Bharat Forge and Tata Advanced Systems, ATAGS boasts a range of over 40 km and is equipped with advanced fire control and precision targeting.
Surge in Indigenous Defence Production
India has recorded its highest-ever growth in indigenous defence production in FY 2023-24, with production value reaching ₹1,27,434 crore. This marks a staggering 174% increase from ₹46,429 crore in 2014-15. Several defence platforms, including the LCA Tejas, Arjun Main Battle Tank, Akash Missile System, and indigenous naval destroyers, have significantly contributed to this growth.
Key Highlights of Indigenous Defence Production
- 65% of defence equipment is now domestically manufactured, significantly reducing import dependency.
- 16 Defence Public Sector Undertakings (DPSUs) and over 430 licensed companies have strengthened indigenous production capabilities.
- 21% of total defence production now comes from the private sector, fostering innovation and efficiency.
- India aims to achieve ₹3 lakh crore in defence production by 2029, reinforcing its position as a global manufacturing hub.
Record-Breaking Defence Exports
India’s defence exports have witnessed a remarkable 30-fold increase over the past decade, rising from ₹686 crore in FY 2013-14 to ₹21,083 crore in FY 2023-24.
Key Export Achievements
- Defence exports have grown 21 times, from ₹4,312 crore in the 2004-14 decade to ₹88,319 crore in the 2014-24 decade.
- India now exports defence equipment to over 100 countries, with the USA, France, and Armenia emerging as top buyers.
- Made-in-Bihar boots are now part of the Russian Army’s gear, reflecting India’s high manufacturing standards.
- The government aims for ₹50,000 crore in defence exports by 2029 to further solidify India’s presence in the global market.
Innovations for Defence Excellence (iDEX)
Launched in April 2018, the iDEX initiative has created an ecosystem for innovation and technology development in defence and aerospace. With grants of up to ₹1.5 crore per project, iDEX has facilitated over 549 problem statements, 619 startups, and 430 contracts as of February 2025.
Key iDEX Innovations
- Development of AI-driven analytical platforms and quantum-secure communication technologies.
- Advancement of autonomous weapon systems, cyber technology, and underwater surveillance.
- Grants of up to ₹25 crore for critical and strategic technologies under the ADITI sub-scheme.
SAMARTHYA: Showcasing India’s Defence Indigenisation
The Aero India 2025 event featured the SAMARTHYA showcase, highlighting 33 major indigenised defence items, including:
- Naval Anti-Ship Missile (Short Range)
- RudraM II Missile
- C4ISR System
- Smart Compressed Breathing Apparatus
This event reinforced India’s ability to develop home-grown solutions for national security and further integrate advanced technologies into its defence infrastructure.
Defence Industrial Corridors: Boosting Domestic Capabilities
To enhance indigenous production, India has established two Defence Industrial Corridors (DICs) in Uttar Pradesh and Tamil Nadu. With investments surpassing ₹8,658 crore, these corridors are crucial in fostering defence manufacturing and innovation.
Make Projects: Driving Indigenous Defence Innovation
India’s MAKE initiative has accelerated defence innovation by funding prototype development and manufacturing projects under three categories:
- MAKE-I (Government Funded): Up to 70% government funding for prototype development.
- MAKE-II (Industry Funded): Focus on import substitution without government funding.
- MAKE-III (Manufacturing via Transfer of Technology – ToT): Minimum 60% indigenous content requirement.
As of March 2025, 145 projects have been undertaken under the MAKE initiative, strengthening self-reliance in defence production.
India’s remarkable strides in defence production and exports underscore its transformation into a self-reliant and globally competitive military manufacturing hub. The combination of strategic policy interventions, increased domestic participation, and a focus on indigenous innovation has significantly strengthened the country’s defence capabilities. With ambitious targets set for 2029, India is poised to further expand its global footprint, reinforcing its position as a defence powerhouse and securing its national security interests through cutting-edge, homegrown military technologies.
