Context:
According to the recent data released by Ministry of Defense, India has achieved the highest-ever growth in indigenous defence production in 2023-24, reaching a record ₹1.27 lakh crore. This remarkable growth is a testament to the success of the Make in India initiative, launched to promote self-reliance in defence manufacturing.
Key Highlights:
Surge in Indigenous Defence Production:
The Indian defence industry has experienced its highest-ever growth, with indigenous defence production reaching ₹1.27 lakh crore in FY 2023-24.
· Major platforms such as the Tejas Light Combat Aircraft, Arjun Main Battle Tank, and INS Vikrant aircraft carrier have been developed domestically. Over 65% of defence equipment is now made in India, with the private sector contributing 21% to the total production.
Unprecedented Growth in Defence Exports:
Defence exports have surged from ₹686 crore in FY 2013-14 to ₹21,083 crore in FY 2023-24, marking a 30-fold increase. India now exports defence equipment to over 100 countries, with key products including bulletproof jackets, Dornier aircraft, and lightweight torpedoes. The government aims to achieve ₹50,000 crore in defence exports by 2029.
Innovations for Defence Excellence (iDEX):
Launched in 2018, the Innovations for Defence Excellence (iDEX) initiative fosters collaboration between startups, MSMEs, and research institutions to develop cutting-edge technologies.
· The ADITI scheme, an extension of iDEX, supports strategic technologies like AI, quantum tech, and autonomous systems, with grants up to ₹25 crore for innovators.
SAMARTHYA:
At SAMARTHYA (Aero India 2025), India showcased over 33 major indigenised defence items, including artillery systems, electronic warfare tools, and advanced surveillance technologies. This event demonstrated India's growing capabilities in defence manufacturing and innovation.
Key Initiatives for India's Defence Production
· Liberalized FDI Policy: Foreign Direct Investment (FDI) in the defence sector was liberalised in September 2020 to attract foreign investment.
· TATA Aircraft Complex: Tata Aircraft Complex was inaugurated in Vadodara in October 2024 to manufacture C-295 aircraft.
· Manthan: The annual defence innovation event, Manthan, brings together innovators, startups, MSMEs, academia, investors, and industry leaders.
· Defence Testing Infrastructure Scheme (DTIS): DTIS provides financial assistance for setting up testing and certification facilities in the aerospace and defence sector.
· Priority for Domestic Procurement: Emphasis is placed on procuring capital items from domestic sources under the Defence Acquisition Procedure (DAP)-2020.
· Domestic Procurement Allocation: 75% of the modernisation budget (Rs 1,11,544 crore) is earmarked for procurement through domestic industries.
Key initiatives such as Defence Industrial Corridors (DICs) and SRIJAN are crucial to India’s defence progress. The DICs, located in Uttar Pradesh and Tamil Nadu, attract investments and foster collaboration. SRIJAN has indigenised over 14,000 items, reducing reliance on imports.
Conclusion
India’s defence sector is rapidly becoming self-reliant, with growth in both production and exports. The Make in India initiative, alongside strategic reforms and innovations, is shaping India into a global leader in defence manufacturing, strengthening national security and economic growth. With ambitious targets for 2029, India is poised to expand its global footprint as a major defence manufacturing hub.