India now exports defence equipment to over 100 countries
In a significant stride toward Atmanirbharta (self-reliance) in defence, the inauguration of the Final Assembly Line Plant of C-295 aircraft in Vadodara, Gujarat on October 28, 2024, marked a milestone for India’s domestic military manufacturing.

A flagship "Make in India” initiative in the aviation sector, the plant has been set up by Tata Advanced Systems Limited (TASL) in collaboration with Airbus Spain. This facility is India’s first private-sector Final Assembly Line (FAL) dedicated to producing military transport aircraft, specifically the C-295. 

With 56 of these aircraft set for delivery, 16 will come from Airbus in Spain (six of these have already been delivered to the Indian Air Force), while the remaining 40 will be manufactured locally. This initiative embodies India’s efforts to fortify its defence industry and lessen dependency on foreign imports.

The government’s dedication to strengthening India’s defence manufacturing capacity has reshaped the nation from a major arms importer to an emerging hub for indigenous defence production. This transformation aligns with India’s strategic goal of enhancing national security through self-reliance.

Rise in India’s Defence Production
The rise in India’s indigenous defence production marks a transformative shift under the government’s Atmanirbharta initiative. As of FY 2023-24, defence production reached an unprecedented ₹1,27,265 crore, marking a growth of 174% from ₹46,429 crore in 2014-15. This accomplishment reflects the success of government policies and the country’s commitment to strengthening its defence industrial base.

Historically, India’s defence sector relied on foreign sources for approximately 65-70% of its equipment. Today, around 65% of India’s defence needs are met domestically, showcasing the resilience of India’s defence manufacturing sector. This growth is driven by 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed private companies, and nearly 16,000 Micro, Small, and Medium Enterprises (MSMEs) across the country. Furthermore, with the private sector accounting for 21% of this production, India’s journey towards self-reliance is gaining momentum.

Under the ‘Make in India’ initiative, the Indian defence sector has made remarkable advancements, developing critical platforms like the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank (MBT) Arjun, Light Combat Aircraft (LCA) Tejas, and submarines. The launch of the indigenous aircraft carrier, INS Vikrant, further demonstrates India’s expanding defence capabilities. The annual defence production is set to reach ₹1.75 lakh crore by the fiscal year’s end, with an ambitious target of ₹3 lakh crore by 2029.

Surge in Defence Exports
India’s defence exports have surged to unprecedented levels, soaring from ₹686 crore in FY 2013-14 to ₹21,083 crore in FY 2023-24. This 30-fold increase over the past decade underscores the success of India’s self-reliance initiatives, government policy reforms, and streamlined business processes. With an impressive 32.5% increase in defence exports over the previous fiscal year, India’s defence exports are reaching new heights. Key items in India’s export portfolio include bulletproof jackets, Chetak helicopters, lightweight torpedoes, and fast interceptor boats.

Among India’s recent export highlights is the production of ‘Made in Bihar’ boots, now used by the Russian Army. Currently, India exports defence equipment to over 100 countries, with the USA, France, and Armenia as top destinations in 2023-24. India’s Defence Minister, Shri Rajnath Singh, has set an ambitious goal of reaching ₹50,000 crore in defence exports by 2029.

Key Government Initiatives
Several key initiatives have been instrumental in boosting India’s defence production capabilities. The following points highlight these transformative policies and reforms:
1. Liberalized FDI Policy: In 2020, the government raised the Foreign Direct Investment (FDI) limit in the defence sector to 74% via the Automatic Route for new licenses and up to 100% through the Government Route for technology-centric projects. As of February 9, 2024, ₹5,077 crore in FDI has been recorded in India’s defence sector.

2. Enhanced Budget Allocation: For the fiscal year 2024-25, the Ministry of Defence received an allocation of ₹6,21,940.85 crore, reflecting the government’s focus on bolstering domestic defence production and modernizing India’s armed forces.

3. Positive Indigenisation Lists: The government has issued five Positive Indigenization Lists with 509 items for the services sector and five lists with 5,012 items for Defence Public Sector Undertakings (DPSUs), mandating indigenization to reduce import dependency.

4. iDEX Scheme: The Innovations for Defence Excellence (iDEX) scheme was launched to involve startups and MSMEs in defence innovation, fostering an ecosystem of collaboration and technological advancement.

5. Public Procurement Preferences: The 2017 Public Procurement Order was implemented to prioritize domestic manufacturers, thereby supporting local industries and MSMEs.

6. Defence Industrial Corridors: To boost regional manufacturing, two Defence Industrial Corridors were established in Uttar Pradesh and Tamil Nadu, positioning India as a global defence production hub.

7. Opening Defence R&D: The government has opened defence R&D to private industry and startups, promoting innovation and strengthening India’s technological prowess in defence.

India’s journey toward Atmanirbharta in defence marks a significant shift from dependency on imports to becoming a self-sufficient powerhouse in global defence manufacturing. The record achievements in both domestic production and exports emphasize the government’s commitment to enhancing national security and supporting economic growth. 

With policies focused on indigenisation, investment, and innovation, India is poised to meet its security needs and emerge as a reliable defence partner worldwide. As India continues to evolve its defence capabilities, its position as a formidable force in global defence manufacturing becomes ever more robust, reinforcing its commitment to both national resilience and international collaboration.