For decades after independence, India was the world’s largest arms importer, sourcing everything from artillery to fighter jets from abroad. That dependency left the nation strategically vulnerable.
Today, the scenario is changing. Under Atmanirbhar Bharat (Self-Reliant India), the government is replacing imports with homegrown equipment and targeting defence exports.
Policy reforms, industrial restructuring, and indigenous technological breakthroughs drive the shift.
Breaking the Import Habit
Until recently, more than two-thirds of India’s defence needs came from foreign suppliers. The arsenal was dominated by Bofors guns, Soviet MiG fighters, and imported tanks.
Change began in 2014 with the launch of Make in India, which placed defence manufacturing at the core of its agenda.
The results are measurable. Indigenous defence production touched ₹1.51 lakh crore in FY 2024–25, recording 18% growth over the previous year. The target for 2029 is ₹3 lakh crore.
Under the Defence Acquisition Procedure (DAP) 2020, ‘Buy Indian (IDDM)’ gets top priority. In FY 2024–25, the Ministry of Defence signed 177 contracts worth ₹1.68 lakh crore with the domestic industry.
Currently, 65% of India’s defence equipment is made domestically.
The government’s framework includes the Defence Production and Export Promotion Policy (DPEPP) 2020, aiming for ₹3 lakh crore output and ₹50,000 crore exports by 2029.
Positive Indigenisation Lists ban imports of over 5,500 items, ensuring orders for local producers. The Innovations for Defence Excellence (iDEX) programme, launched in 2018, brings start-ups and MSMEs into R&D.
Defence industrial corridors in Uttar Pradesh and Tamil Nadu attract investment. The corporatisation of the Ordnance Factory Board in 2021 created seven defence PSUs to boost efficiency.
Liberalised FDI norms allow up to 74% through the automatic route and 100% with approval, encouraging foreign investment and technology transfer.
Export Growth and Global Reach
A decade ago, India’s defence exports were only ₹686 crore in FY 2013–14. By FY 2024–25, they reached a record ₹23,622 crore, a 34-fold rise.
Private companies lead with 60% of exports. India now sells to over 100 countries, including the USA, France, and Armenia. The export range covers bulletproof jackets, patrol boats, and advanced systems like the BrahMos missile.
The BrahMos deal with the Philippines elevated India’s profile as a supplier of advanced weaponry. Talks are underway to export the LCA Tejas and the Akash missile system.
Flagship indigenous projects include the LCA Tejas fighter jet, with the Mk1A variant nearing delivery by late 2025.
Work continues on the Tejas Mark 2 and the Advanced Medium Combat Aircraft (AMCA), India’s fifth-generation stealth fighter.
INS Vikrant, the nation’s first indigenously designed and built aircraft carrier, was commissioned in 2022. India’s missile programme, from the Agni and Prithvi series to the Astra Mk-1, has achieved maturity.
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