Make in India Powers Defence Growth

Why in the News?

India’s defence production has achieved an unprecedented milestone by reaching a record ₹1.27 lakh crore in FY 2023-24, representing a remarkable 174% increase compared to ₹46,429 crore in FY 2014-15. This rapid growth highlights the success of the “Make in India” initiative in the defence sector, where the country is transitioning from being a major importer to becoming a rising hub for indigenous defence manufacturing.

What is Make in India – The Programme

Launched in 2014, the Make in India initiative aims to transform India into a global manufacturing hub by promoting domestic production across various sectors, reducing import dependency, and fostering innovation. This flagship programme seeks to create jobs, boost exports, and contribute to economic growth by encouraging investments from both domestic and foreign entities. The defence sector, a critical pillar of national security and technological prowess, has emerged as a focal point of the Make in India drive, with an emphasis on indigenisation and self-reliance.
Key aspects include:
1. Enhancing infrastructure to support indigenous manufacturing.
2. Providing financial incentives and tax benefits to attract investment.
3. Simplifying regulatory processes to ease the business environment for defence manufacturers.

Make in India in the Defence Sector

India’s defence manufacturing has witnessed remarkable progress under the Make in India initiative. Historically dependent on foreign suppliers for critical military equipment, the country is now steadily reducing its reliance on imports by building indigenous capabilities. Strategic policy interventions, increased budget allocations, and partnerships with the private sector have driven this transformation, placing India on the path to becoming a global defence manufacturing hub.
Key developments in India’s defence sector include the design and production of advanced military platforms such as the Light Combat Aircraft (LCA) Tejas, Main Battle Tank (MBT) Arjun, Advanced Towed Artillery Gun System (ATAGS), Akash Missile System, and naval assets like indigenous aircraft carriers and submarines.
Additional achievements:
1. Increased focus on research and development (R&D) to foster technological innovation.
2. Enhanced collaboration between Defence Public Sector Undertakings (DPSUs) and private entities.
3. Expansion of defence manufacturing capabilities through industrial corridors and clusters.

Recent Surge in Defence Self-Reliance

India’s indigenous defence production has reached new heights, achieving a record value of ₹1.27 lakh crore in FY 2023-24, up by 174% from ₹46,429 crore in 2014-15. This surge is driven by government policies encouraging private participation, innovation, and modernisation. Key highlights include:
1. 65% of defence equipment is now manufactured domestically, compared to the earlier import dependency of 65-70%.
2. A robust defence industrial base, comprising 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed companies, and approximately 16,000 MSMEs, contributes to indigenous production.
3. Increased focus on manufacturing critical technologies, including missile systems, artillery guns, and electronic warfare systems.
Modernisation efforts have also been bolstered by the Cabinet Committee on Security’s approval of significant procurement deals, such as 307 ATAGS artillery guns and 327 High Mobility Gun Towing Vehicles, developed by DRDO in collaboration with Bharat Forge and Tata Advanced Systems.

Unprecedented Growth in Defence Exports

India’s defence exports have seen exceptional growth, expanding from ₹686 crore in FY 2013-14 to ₹21,083 crore in FY 2023-24 — a 30-fold increase in a decade. This surge reflects India’s growing footprint in the global defence manufacturing landscape.
Key milestones include:
1. Exporting defence equipment to over 100 countries, with the USA, France, and Armenia emerging as top buyers.
2. A diverse export portfolio comprising bulletproof jackets, Dornier Do-228 aircraft, Chetak helicopters, fast interceptor boats, lightweight torpedoes, and even ‘Made in Bihar’ boots used by the Russian Army.
3. Development of defence attaché networks to promote exports and identify market opportunities.
To further boost exports, the government has set an ambitious target of achieving ₹50,000 crore in defence exports by 2029.

Government Steps to Promote Self-Reliance in Defence Technology

A series of policy measures and initiatives have been implemented to enhance self-reliance and encourage domestic manufacturing in the defence sector:
1. Innovations for Defence Excellence (iDEX): Launched in 2018, iDEX engages startups, MSMEs, R&D institutions, and academia to develop cutting-edge technologies. As of February 2025, 430 iDEX contracts have been signed, with grants up to ₹25 crore provided for critical technologies like AI, quantum technology, and autonomous systems. Creation of Defence Innovation Hubs to provide mentorship and infrastructure to startups.Organisation of defence challenges to promote innovation in key areas.
2.SRIJAN Portal: Launched in August 2020, SRIJAN facilitates the indigenisation of imported items by DPSUs and the Armed Forces. Over 14,000 items have already been indigenised. Enhanced tracking system to monitor progress and identify more items for indigenisation. Increased participation from private sector vendors and suppliers.
3. Positive Indigenisation Lists (PILs): These lists mandate the domestic procurement of over 5,500 items, of which more than 3,000 have been successfully indigenised as of February 2025.Implementation of phased timelines for indigenisation to encourage timely domestic production.Regular updates to the lists to include emerging technologies and systems.
4. Defence Industrial Corridors (DICs): Two corridors in Uttar Pradesh and Tamil Nadu aim to boost defence manufacturing by attracting investments. As of February 2025, 253 MoUs have been signed, with potential investments exceeding ₹53,439 crore.Development of specialised clusters for specific defence technologies, such as aerospace and armaments.Provision of common testing facilities and infrastructure support.
5. Ease of Doing Business (EoDB): The government has streamlined licensing processes, extended the validity of defence licences, and introduced an end-to-end digital export authorisation system, enhancing efficiency. Reduction in the timeline for obtaining clearances and approvals. Simplification of tax structures to encourage domestic and foreign investment.
6. MAKE Projects: These projects promote indigenous design and development under three categories: MAKE-I (government-funded), MAKE-II (industry-funded), and MAKE-III (manufactured under Technology Transfer).Increased funding support for prototype development.Emphasis on collaborative projects involving academia, industry, and the armed forces.

Significance of Self-Reliance in Defence Technology

Achieving self-reliance in defence technology is crucial for enhancing national security, reducing vulnerability to geopolitical disruptions, and fostering economic growth. Indigenous manufacturing strengthens India’s strategic autonomy, reduces the defence import bill, and generates employment. Additionally, it boosts innovation and technological advancements, positioning India as a key player in the global defence market.
Additional benefits include:
1. Strengthened supply chain resilience to mitigate disruptions in global markets.
2. Increased export potential, contributing to foreign exchange reserves.
3. Greater control over the lifecycle management of critical defence platforms.

Still, Challenges Persist

Despite the remarkable progress, challenges remain in achieving full self-reliance:
1. Technological Gaps: India still relies on imports for certain critical technologies, such as jet engines and high-end sensors.
2. R&D Funding: Defence R&D expenditure, though increasing, needs to be scaled up further to match global standards.
3. Private Sector Participation: While private sector contributions are growing, more needs to be done to foster greater participation and collaboration.
4. Export Competitiveness: Indian defence exports face stiff competition from established global players, necessitating sustained efforts to enhance quality and cost competitiveness.
5. Integration of Emerging Technologies: Ensuring the timely adoption of disruptive technologies like AI, cyber warfare, and hypersonic systems remains a challenge.

Way Forward

To address these challenges and achieve greater self-reliance, India can take the following steps:
1. Increase R&D Investment: Enhance funding for defence R&D to develop cutting-edge technologies domestically.
2. Strengthen Public-Private Partnerships (PPPs): Foster deeper collaboration between DPSUs, private companies, and startups.
3. Focus on High-End Technologies: Prioritise the development of advanced technologies like AI, cyber warfare, hypersonic missiles, and quantum computing.
4. Expand Export Markets: Strengthen diplomatic and trade relations to explore new export markets and diversify India’s defence export portfolio.
5. Skill Development: Invest in training and upskilling the workforce to meet the growing demand for skilled professionals in the defence sector.
6. Boost Infrastructure Development: Develop state-of-the-art manufacturing facilities and testing ranges to enhance production capabilities.

Conclusion

The Make in India initiative has transformed India’s defence manufacturing landscape, propelling the country toward self-reliance and global prominence. With sustained policy support, technological innovation, and private sector engagement, India is well on its way to becoming a global defence manufacturing powerhouse. While challenges remain, the path forward is clear — a future where India’s defence forces are equipped with state-of-the-art, indigenously manufactured technologies, ensuring both national security and economic prosperity.

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