Key Highlights
- Record Defence Production Growth: India’s defence production touched an all-time high of ₹1.27 lakh crore in FY 2023-24. It registered a 174% surge since 2014-15. This growth was driven by the Make in India initiative and a focus on indigenous manufacturing.
- Massive Export Expansion: Defence exports reached ₹21,083 crore. This marks a 30-fold rise in a decade. Exports now go to over 100 countries. The government targets ₹50,000 crore in defence exports by 2029.
- Boost to Indigenous Innovation: Initiatives like iDEX and ADITI are fueling advancements in AI and cyber warfare. They also enhance autonomous weapons and other critical technologies. Over 619 startups and MSMEs are actively engaged in defence innovation projects.
- Successful Indigenisation Efforts: Over 14,000 items have been indigenised under the SRIJAN platform. More than 3,000 items through Positive Indigenisation Lists have significantly reduced dependency on imports.
- Corridors Development: Two dedicated Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu have attracted investments exceeding ₹8,600 crore. This has further strengthened India’s defence manufacturing capabilities.
Unprecedented Growth
India’s defence production reached ₹1.27 lakh crore in FY 2023-24, marking a 174% rise since 2014-15, driven by the Make in India initiative. The Ministry of Defence has released a report. It shows that defence exports hit a record ₹21,083 crore in FY 2023-24. The exports expanded 30 times in a decade. Exports reached 100+ countries. According to the report, initiatives like iDEX and SAMARTHYA are making strides. They are driving technological advancements in AI. Cyber warfare is another focal area. They are also enhancing indigenous weapon systems. 14,000+ items indigenised under SRIJAN and 3,000 under Positive Indigenisation Lists. India aims for ₹3 lakh crore in production, ₹50,000 crore in exports by 2029.
India’s defence production has grown at an extraordinary pace. This growth followed the launch of the “Make in India” initiative. Production reached a record ₹1.27 lakh crore in FY 2023-24. The country was once dependent on foreign suppliers. Now, it stands as a rising force in indigenous manufacturing. It shapes its military strength through homegrown capabilities. This shift shows a strong commitment to self-reliance. It ensures that India not only meets its security needs. It also builds a robust defence industry. This industry contributes to economic growth. Strategic policies have fuelled this momentum, encouraging private participation, technological innovation, and the development of advanced military platforms.
INDIA: A Key Global Player
The surge in the defence budget, from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26, underlines the focus to strengthen its military infrastructure. This commitment to self-reliance and modernisation is clear. The Cabinet Committee on Security (CCS) recently approved the procurement of the Advanced Towed Artillery Gun System (ATAGS). This is a significant step in enhancing the Army’s firepower. The deal includes 307 units of 155mm/52 caliber guns. It also includes 327 High Mobility 6×6 Gun Towing Vehicles. These will equip 15 Artillery Regiments under the Buy Indian–Indigenously Designed, developed and Manufactured (IDDM) category. The estimated cost is ₹7,000 crore. ATAGS is developed by DRDO with Bharat Forge and Tata Advanced Systems. It is a cutting-edge artillery system with a 40+ km range. It has advanced fire control and precision targeting. The system features automated loading and recoil management. It has been thoroughly tested by the Indian Army in all terrains. Modern warships, fighter jets, and artillery systems are being built within the country. Cutting-edge weaponry is also developed domestically. India is now a key player in the global defence manufacturing landscape.
Surge in Indigenous Defence Production
The value of defence production has surged to a record high of ₹1,27,265 crore. This marks an impressive 174% increase from ₹46,429 crore in 2014-15. This data comes from all Defence Public Sector Undertakings (DPSUs), other public sector units manufacturing defence items, and private companies.
This growth has been bolstered by the Make in India initiative. It has enabled the development of advanced military platforms. These include the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), and Main Battle Tank (MBT) Arjun. Other developments are Light Specialist Vehicles, High Mobility Vehicles, and Light Combat Aircraft (LCA) Tejas. The initiative also supports the Advanced Light Helicopter (ALH), Light Utility Helicopter (LUH), and Akash Missile System. Additionally, it includes Weapon Locating Radar, 3D Tactical Control Radar, and Software Defined Radio (SDR). Naval assets like destroyers, indigenous aircraft carriers, and submarines are also in development. The list extends to frigates, corvettes, fast patrol vessels, fast attack craft, and offshore patrol vessels.
The MoD report highlights that 65% of defence equipment is now manufactured domestically. This marks a significant shift from the earlier 65-70% import dependency. This change showcases India’s self-reliance in defence. A robust defence industrial base includes 16 DPSUs, over 430 licensed companies, and approximately 16,000 MSMEs, strengthening indigenous production capabilities. The private sector plays a crucial role, contributing 21% to total defence production, fostering innovation and efficiency.
According the MoD, India targets ₹3 lakh crore in defence production by 2029. This move reinforces its position as a global defence manufacturing hub.
Unprecedented Growth in Defence Exports
The ten page comprehensive report also highlights India’s expanding global footprint in defence manufacturing. Defence exports have surged from ₹686 crore in FY 2013-14 to an all-time high of ₹21,083 crore in FY 2023-24. This marks a 30-fold increase. The Defence exports have grown significantly. They have increased 21 times, from ₹4,312 crore in the 2004-14 decade to ₹88,319 crore in the 2014-24 decade.
Defence exports surged by 32.5% year-on-year, rising from ₹15,920 crore in FY 2022-23 to ₹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. The USA, France, and Armenia have emerged as the top buyers in 2023-24. The government aims to achieve ₹50,000 crore in defence exports by 2029.
Innovations for Defence Excellence (iDEX)
Innovations for Defence Excellence (iDEX) was launched in April 2018. It has since created a thriving ecosystem for innovation and technology development in defence and aerospace. By engaging MSMEs, startups, individual innovators, R&D institutes, and academia, iDEX has provided grants of up to ₹1.5 crore for developing innovative technologies. To further enhance self-reliance in defence technology, ₹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. These include satellite communication, advanced cyber technology, and autonomous weapons. It also covers semiconductors, artificial intelligence, and quantum technology. Additionally, it supports nuclear technologies and underwater surveillance. Under this scheme, grants of up to ₹25 crore are provided to innovators. To support startups and MSMEs, the Ministry of Defence has approved procurement of 43 items. These items come from iDEX startups and MSMEs. They are worth over ₹2,400 crore for the Armed Forces as of February 2025. Additionally, projects worth over ₹1,500 crore have been approved for development.
SAMARTHYA: Showcasing India’s Defence Indigenisation
The success story of indigenisation and innovation in the defence sector was highlighted at the Aero India 2025 event ‘SAMARTHYA’. It showcased India’s progress in defence manufacturing. The event featured 33 major indigenised items. There were 24 developed by Defence Public Sector Undertakings (DPSUs). The Defence Research and Development Organisation (DRDO) and the Indian Navy also contributed to the development. Additionally, there were nine successful innovation projects.
Electro Block of the Anti-Aircraft Machine Gun
Electric Mobile Part for Submarines. Torsion Bar Suspension for HMV 6×6. Extruded Aluminium Alloy for LCA MK-I/II and LCH Components. Indian High-Temperature Alloy (IHTA). VPX-135 Single Board Computer. Naval Anti-Ship Missile (Short Range). RudraM II Missile. C4ISR System. DIFM R118 Electronic Warfare Systems. Self-Reliant Initiatives through Joint Action (SRIJAN). SRIJAN was launched by the Department of Defence Production (DDP) in August 2020 to promote indigenisation under Atmanirbhar Bharat. It serves as a common platform for Defence Public Sector Undertakings (DPSUs). It also serves the Armed Forces (SHQs) to list imported items. The purpose is 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). These lists target 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 and assault rifles. They also include corvettes, sonar systems, and transport aircraft. Furthermore, light combat helicopters (LCHs) and radars are part of these technologies. Wheeled armoured platforms, rockets, and bombs are included as well. Lastly, armoured command post vehicles and armoured dozers complete the list.
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 Rs 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 ₹53,439 crore.
