• India’s defence production reaches record high; Here’s why
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    India’s defence production reaches record high; Here’s why

    desk Posted on

    Atmanirbhar Bharat and make-in-India initiative has led to a record high in India’s Defence production, with defence production reaching a record of 1.27 lakh crore in the 2023-24 financial year, marking a 174% rise from Rs 46,429 crore in 2014-15.

    According to the data released by the ministry, India’s defence equipment is now manufactured domestically, a significant shift from the import dependency of 65–70%.

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    Once dependent on foreign suppliers, the country now stands as a rising force in indigenous manufacturing, shaping its military strength through homegrown capabilities. This shift reflects a strong commitment to self-reliance, ensuring that India not only meets its security needs but also builds a robust defence industry that contributes to economic growth

    This commitment to self-reliance and modernisation is reflected in the recent approval by the Cabinet Committee on Security (CCS) for the procurement of the Advanced Towed Artillery Gun System (ATAGS), a significant step in enhancing the Army’s firepower.

    The deal includes 307 units of 155mm/52 caliber guns along with 327 High Mobility 6×6 Gun Towing Vehicles, equipping 15 Artillery Regiments under the Buy Indian–Indigenously Designed, Developed, and Manufactured (IDDM) category, at an estimated cost of INR 7,000 crore. Developed by DRDO with Bharat Forge and Tata Advanced Systems, ATAGS is a cutting-edge artillery system with a 40+ km range, advanced fire control, precision targeting, automated loading, and recoil management, thoroughly tested by the Indian Army in all terrains.

    With modern warships, fighter jets, artillery systems, and cutting-edge weaponry being built within the country, India is now a key player in the global defence manufacturing landscape.

    Surge in Indigenous Defence Production

    India’s advanced military platforms includes the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank (MBT) Arjun, Light Specialist Vehicles, High Mobility Vehicles, Light Combat Aircraft (LCA) Tejas, Advanced Light Helicopter (ALH), Light Utility Helicopter (LUH), Akash Missile System, Weapon Locating Radar, 3D Tactical Control Radar, and Software Defined Radio (SDR), as well as naval assets like destroyers, indigenous aircraft carriers, submarines, frigates, corvettes, fast patrol vessels, fast attack craft, and offshore patrol vessels, all indigenously manufactured.

    Unprecedented Growth in Defence Exports

    India’s expanding global footprint in defence manufacturing is a direct result of its commitment to self-reliance and strategic policy interventions. Defence exports have surged from ₹686 crore in FY 2013-14 to an all-time high of INR 21,083 crore in FY 2023-24, marking a 30-fold increase over the past decade.

    • Defence exports have grown 21 times, from INR 4,312 crore in the 2004-14 decade to INR 88,319 crore in the 2014-24 decade, highlighting India’s expanding role in the global defence sector.
  • Defence exports surged by 32.5% year-on-year, rising from INR 15,920 crore in FY 2022-23 to INR 21,083 crore in FY 2023-24.
  • India’s diverse export portfolio includes bulletproof jackets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes.
  • Notably, ‘Made in Bihar’ boots are now part of the Russian Army’s gear, highlighting India’s high manufacturing standards.
  • India now exports defence equipment to over 100 countries, with the USA, France, and Armenia emerging as the top buyers in 2023-24.
  • The government aims to achieve INR 50,000 crore in defence exports by 2029, reinforcing India’s role as a global defence manufacturing hub while boosting economic growth.

    • Innovations for Defence Excellence (iDEX)

    iDEX was launched in April 2018 as Innovations for Defence Excellence to create a thriving ecosystem for innovation and technology development in defence and aerospace. The system engages startups, individual innovators, R&D institutes, and academia. iDEX has provided grants of up to INR 1.5 crore for developing innovative technologies.

    To further enhance self-reliance in defence technology, INR 449.62 crore has been allocated to iDEX, including its sub-scheme Acing Development of Innovative Technologies with iDEX (ADITI), for 2025-26. As of February 2025, 549 problem statements have been opened, involving 619 startups and MSMEs, with 430 iDEX contracts signed.

    The recently launched ADITI scheme aims to support critical and strategic technologies such as satellite communication, advanced cyber technology, autonomous weapons, semiconductors, artificial intelligence, quantum technology, nuclear technologies, and underwater surveillance. Under this scheme, grants of up to INR 25 crore are provided to innovators.

    Reinforcing its commitment to supporting startups and MSMEs, the Ministry of Defence has also cleared procurement of 43 items worth over INR 2,400 crore from iDEX startups and MSMEs for the Armed Forces as of February 2025. Additionally, projects worth over ₹1,500 crore have been approved for development.

    Efforts are ongoing to bridge the gap between the Indian Army’s operational challenges and the innovative solutions developed by academia, industry startups, and research institutions. Additionally, the focus remains on conducting multi-domain operations in a data-centric environment, especially in light of emerging transformative technologies.

    India’s pursuit of self-reliance in defence manufacturing has significantly reduced its dependence on foreign suppliers. Through strategic policies and indigenous innovation, the country is developing cutting-edge military platforms, strengthening both national security and economic growth.

    Self-Reliant Initiatives through Joint Action (SRIJAN)

    • Launched by the Department of Defence Production (DDP) in August 2020 to promote indigenisation under Atmanirbhar Bharat.
  • Serves as a common platform for Defence Public Sector Undertakings (DPSUs) and the Armed Forces (SHQs) to list imported items for domestic manufacturing.
  • As of February 2025, over 38,000 items are available, with more than 14,000 successfully indigenised.

    • Positive Indigenisation Lists (PILs)

    • The Department of Defence Production (DDP) and the Department of Military Affairs (DMA) have issued five Positive Indigenisation Lists (PILs) for LRUs, assemblies, sub-assemblies, sub-systems, spares, components, and high-end materials.
  • These lists set fixed timelines beyond which procurement will be restricted to domestic manufacturers.
  • Out of over 5,500 items listed, more than 3,000 have been indigenised as of February 2025.
  • Key indigenised technologies include artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters (LCHs), radars, wheeled armoured platforms, rockets, bombs, armoured command post vehicles, and armoured dozers.

    • Defence Industrial Corridors

    • Two Defence Industrial Corridors (DICs) have been set up in Uttar Pradesh and Tamil Nadu to boost defence manufacturing. These corridors provide incentives to companies investing in the sector.
  • Investments worth more than INR 8,658 crore have already been made in the 6 nodes of UP viz. Agra, Aligarh, Chitrakoot, Jhansi, Kanpur and Lucknow and 5 nodes of Tamil Nadu viz. Chennai, Coimbatore, Hosur, Salem and Tiruchirappalli.
  • As of February 2025, 253 MoUs have been signed, with a potential investment of INR 53,439 crore.

    • Ease of Doing Business (EoDB)

    • The government has introduced several measures to improve ease of doing business in the defence manufacturing sector.
  • The validity of export authorisation for parts and components has been extended from two years to the completion of the order or component, whichever is later.
  • In 2019, the Defence Product List was streamlined to reduce the number of items requiring a manufacturing licence.
  • Parts and components of defence items were de-licensed in September 2019 to encourage investment.
  • The validity of defence licences under the industries (Development and Regulation) Act, 1951, has been extended from three years to 15 years, with a further extension option of up to 18 years.
  • Over 700 industrial licences have been issued to 436 companies in the defence sector.
  • The introduction of an end-to-end digital export authorisation system has improved efficiency, with more than 1,500 authorisations issued in the last financial year.

    • MAKE Projects: Driving Indigenous Defence Innovation

    The MAKE procedure was first introduced in the Defence Procurement Procedure (DPP-2006) to promote indigenous design and development in the defence sector. Over the years, it has been simplified and streamlined through revisions in 2016, 2018, and 2020, ensuring faster development of defence equipment, systems, and components by both public and private industries.

    MAKE projects have been divided into three categories:

    MAKE-I (Government Funded)

    • Up to 70% government funding for prototype development (capped at ₹250 crore per Development Agency).
  • Minimum 50% Indigenous Content (IC) required.

    • MAKE-II (Industry Funded)

    • Focuses on import substitution, encouraging domestic industries to develop critical defence systems.
  • No government funding, with a minimum 50% Indigenous Content (IC) requirement.

    • MAKE-III (Manufactured in India through Transfer of Technology – ToT)

    • Involves manufacturing in India under Technology Transfer (ToT) from Foreign OEMs.
  • No design and development but require a minimum of 60% Indigenous Content (IC).
    • As of March 24, 2025, a total of 145 projects have been undertaken under the MAKE initiative, with the participation of 171 industries, driving indigenous defence production.
    • The initiative includes 40 MAKE-I projects (Government Funded), 101 MAKE-II projects (Industry Funded), and 4 MAKE-III projects (Manufacturing through ToT), strengthening self-reliance in defence manufacturing.

    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. The surge in production, the exponential rise in exports, and the success of initiatives like the Make in India reflect India’s commitment to achieving Atmanirbharta in defence. With ambitious targets set for 2029, the nation is poised to further expand its global footprint, reinforcing its position as a dependable partner in the international defence market while enhancing national security and economic growth.

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