India’s defence sector has witnessed remarkable growth over the past decade, reaching an all-time high in production and exports. The Ministry of Defence (MoD) reported a record defence production value of ₹1.27 lakh crore for the financial year 2023-24, alongside defence exports crossing ₹21,083 crore. This achievement reflects India’s growing emphasis on self-reliance and innovation in defence manufacturing, aligning with the broader vision of the Make in India initiative.
Background: Indian Defence Production and the ‘Make in India’ Initiative
For decades, India has been one of the world’s largest arms importers, relying heavily on foreign manufacturers to meet its defence needs. However, in recent years, a strong push for domestic production has significantly reduced import dependency. The Make in India campaign, launched in 2014, has played a pivotal role in this transformation by promoting local manufacturing, encouraging private sector participation, and fostering innovation through initiatives like Innovations for Defence Excellence (iDEX) and Acing Development of Innovative Technologies with iDEX (ADITI).
Record-Breaking Growth in Defence Production and Exports
According to MoD data, India’s defence production surged from ₹46,200 crore in 2014-15 to ₹1.27 lakh crore in 2023-24, marking a 174% increase over the period. Similarly, defence exports experienced exponential growth, rising from ₹686 crore in 2013-14 to ₹21,083 crore in 2023-24, an increase of nearly 30 times. These figures underscore India’s growing footprint in the global defence market.
The total production and export figures include contributions from Defence Public Sector Undertakings (DPSUs), other public sector units manufacturing defence items, and private companies. Notably, private sector enterprises now account for 21% of total defence production.
Future Targets and Goals
The MoD has set an ambitious target of ₹3 lakh crore in defence production by 2029, signaling continued efforts toward self-sufficiency. The reduction in import dependency is evident, with 65% of India’s defence equipment now being manufactured domestically, compared to 65-70% import reliance in the past. However, challenges remain, as India was still the world’s second-largest arms importer after Ukraine in 2023, according to the Stockholm International Peace Research Institute (SIPRI).
Key Players and Contributions to Indigenous Defence Manufacturing
The rapid growth in defence production has been driven by 16 DPSUs, over 430 licensed companies, and approximately 16,000 MSMEs engaged in the sector. Some of the major indigenous defence platforms developed include:
- Dhanush Artillery Gun System
- Advanced Towed Artillery Gun System (ATAGS)
- Main Battle Tank (MBT) Arjun
- Light Specialist Vehicles and High Mobility Vehicles
- Light Combat Aircraft (LCA) Tejas
- Advanced Light Helicopter (ALH) and Light Utility Helicopter (LUH)
- Akash Missile System
- Weapon Locating Radar and 3D Tactical Control Radar
- Software Defined Radio (SDR)
India’s defence production sector has made significant strides, demonstrating strong progress in achieving self-reliance through government-led initiatives, increased private sector participation, and robust innovation. With ambitious targets set for the coming years, India is on track to further strengthen its domestic manufacturing capabilities and emerge as a key global player in the defence industry. While challenges such as import dependency persist, the current trajectory signals a promising future for India’s defence ecosystem, reinforcing national security and economic growth.
(With inputs from agencies)
