India’s domestic defense sector has been significantly impacted by the “Make in India” campaign, which has led to important changes in production capacities, regulatory reforms, and strategic alliances. The following are the main outcomes of this initiative:
Domestic defense output has significantly increased as a result of the effort. A move toward self-reliance in defense industry was highlighted by the allocation of 75% of the modernization budget for the Financial Year 2023–24 to domestic procurement.
In order to stimulate innovation and the production of vital defense equipment, the government has announced a number of significant defense platforms for industry-led design and development. This covers naval boats, airplanes, and weaponry systems.
Foreign direct investment (FDI) regulations have been loosened under the initiative, permitting up to 74% FDI in the defense sector through the automatic route and 100% with government permission. This has encouraged foreign defense firms to open manufacturing facilities and joint ventures in India, promoting cooperation and knowledge transfer.
To encourage start-ups and micro, small, and medium-sized businesses (MSMEs) to provide defenses, initiatives such as the Innovations for Defence Excellence (iDEX) plan have been introduced. In order to promote innovation and increase competitiveness in the industry, this emphasis on smaller businesses is essential.
Positioning India as a global center for defense exports and manufacturing is the initiative’s goal. India is working to become a competitive force in the global defense sector by implementing important policy changes and forming strategic alliances.
In addition to lowering reliance on imports, the drive toward indigenization creates opportunities for exporting defense hardware. By 2025, the government hopes to have produced ₹1,750 billion, or roughly $26 billion, including ₹350 billion in exports, or about $5 billion.
To properly satisfy the purchase budgets of the armed forces, production capacities must be greatly increased.
Improving research and development skills is still essential to lowering dependency on imported technology and guaranteeing that homegrown goods fulfill global standards.
To effectively convert reforms into real production results, procurement decision-making must be streamlined.
By encouraging domestic manufacturing, drawing in international capital, and encouraging creativity among regional producers, the “Make in India” campaign has sparked a revolution in India’s defense sector. Even though there has been a lot of progress, overcoming current obstacles is essential to maximizing this initiative’s potential and attaining defense manufacturing self-reliance.