With 65% of its defensive equipment being produced locally, India has significantly improved its defence capabilities. This represents a considerable change from the country’s previous 65-70% reliance on imports. The ‘Make in India’ campaign is partly responsible for this change, as it has boosted defence output to a record ₹1.27 lakh crore for the fiscal year 2023–2024, with an ambitious goal of ₹3 lakh crore by 2029.
India’s varied export portfolio, which includes lightweight torpedoes, Dornier (Do-228) planes, Chetak helicopters, bulletproof jackets, and rapid interceptor boats, was highlighted by the Ministry of Defence. The addition of “Made in Bihar” boots to the Russian Army’s equipment is a particularly significant step that highlights India’s superior manufacturing standards.
The administration underlined how India has changed from being largely reliant on imports to being a major player in domestic production. In addition to meeting the needs of national security, this change promotes a strong military sector that boosts the economy. According to the March 24 fact sheet, strategic measures that promote private sector involvement and technological innovation in cutting-edge military systems have played a significant role in this momentum.
India has drawn substantial foreign investment after liberalising foreign direct investment (FDI) in the defence sector in September 2020. Up to 74% of FDI is permitted through automated channels, and even more through government channels. Since April 2000, FDI in defence industries has totalled ₹5,516.16 crore.
A significant commitment to modernising military infrastructure is demonstrated by the increase in India’s defence budget, which went from ₹2.53 lakh crore in 2013–14 to an anticipated ₹6.81 lakh crore by 2025–2026.
This commitment is further supported by recent Cabinet Committee on Security permits for the purchase of cutting-edge artillery systems, such as the Advanced Towed Artillery Gun System (ATAGS). At an estimated cost of ₹7,000 crore, the transaction includes 307 units of state-of-the-art artillery weapons and high mobility towing vehicles.
With 16 Defence Public Sector Undertakings (PSUs), more than 430 licensed businesses, and over 16,000 Micro, Small, and Medium Enterprises (MSMEs), India has a strong defence industrial base that boosts domestic manufacturing capacity.
About 21% of all defence production comes from the private sector, which also plays a significant role in fostering innovation and efficiency in the sector.
India is establishing itself as a major player in the global defence manufacturing scene with the development of advanced artillery systems, fighter planes, contemporary warships, and other cutting-edge weapons domestically.
