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India's Defence Transformation Under Make in India

Last Updated

30th March, 2025

Date Published

30th March, 2025

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Published by the Press Information Bureau on March 29, 2025, this document outlines the remarkable growth of India’s defence sector under the "Make in India" initiative. It details the surge in indigenous production, export achievements, key acquisitions, and policy measures driving self-reliance, offering a comprehensive view of India’s evolving defence landscape as of FY 2023-24 and beyond.

Key Points:

  • Production Milestone: India’s defence production hit ₹1.27 lakh crore in FY 2023-24, a 174% increase from ₹46,429 crore in 2014-15, driven by the Make in India initiative.
  • Export Surge: Defence exports reached ₹21,083 crore in FY 2023-24, a 30-fold rise from ₹686 crore in FY 2013-14, with a 32.5% year-on-year growth from ₹15,920 crore in FY 2022-23.
  • Decadal Export Growth: Exports grew 21 times, from ₹4,312 crore (2004-14) to ₹88,319 crore (2014-24), with over 100 countries as buyers, including the USA, France, and Armenia.
  • Budget Expansion: Defence budget increased from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26, reflecting a focus on military modernization.
  • Domestic Manufacturing: 65% of defence equipment is now made domestically, reducing import dependency from 65-70% earlier.
  • Industrial Base: Comprises 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed companies, and approximately 16,000 MSMEs, with the private sector contributing 21% to production.
  • Future Targets: Aims for ₹3 lakh crore in production and ₹50,000 crore in exports by 2029, positioning India as a global defence manufacturing hub.
  • Record Contracts: In 2024-25, 193 contracts worth ₹2,09,050 crore were signed, with 177 (92%) awarded to domestic industries for ₹1,68,922 crore (81% of total value).
  • Indigenisation Efforts: Over 14,000 items indigenised via SRIJAN and 3,000 under Positive Indigenisation Lists (PILs) as of February 2025.
  • Key Acquisitions:
    • LCH Prachand: Contracts signed on March 28, 2025, with HAL for 156 helicopters (66 for IAF, 90 for Army) worth ₹62,700 crore, with over 65% indigenous content and 8,500 jobs created.
    • KC-135 FRA: Wet lease agreement with Metrea Management for one Flight Refuelling Aircraft to train IAF and Navy pilots, delivery within six months.
    • ATAGS: CCS approved 307 Advanced Towed Artillery Gun Systems and 327 towing vehicles for ₹7,000 crore, developed by DRDO with Bharat Forge and Tata Advanced Systems, featuring a 40+ km range.
  • Advanced Platforms: Includes Dhanush Artillery, ATAGS, MBT Arjun, LCA Tejas, ALH, LUH, Akash Missile, naval assets (destroyers, aircraft carriers, submarines), and more.
  • Innovations for Defence Excellence (iDEX):
    • Launched in 2018, allocated ₹449.62 crore for 2025-26, including ADITI sub-scheme.
    • Engaged 619 startups/MSMEs, signed 430 contracts, and opened 549 problem statements by February 2025.
    • Offers grants up to ₹1.5 crore (iDEX) and ₹25 crore (ADITI) for technologies like AI, quantum tech, and semiconductors.
    • Cleared procurement of 43 items worth ₹2,400 crore and approved projects worth ₹1,500 crore.
  • SAMARTHYA Event: At Aero India 2025, showcased 33 indigenised items (24 by DPSUs/DRDO/Navy, 9 by iDEX), including RudraM II Missile, C4ISR System, and quantum-secure communication tech.
  • SRIJAN Initiative: Launched in August 2020, lists over 38,000 items for indigenisation, with 14,000 achieved by February 2025.
  • Positive Indigenisation Lists (PILs): Five lists with over 5,500 items, 3,000 indigenised, covering artillery, radars, and helicopters.
  • Defence Industrial Corridors: In Uttar Pradesh and Tamil Nadu, with ₹8,658 crore invested and 253 MoUs signed for ₹53,439 crore potential investment.
  • Ease of Doing Business:
    • Extended export authorisation validity to order completion.
    • De-licensed parts/components in 2019, extended licence validity to 15-18 years.
    • Issued over 700 licences to 436 companies; 1,500+ digital export authorisations in the last year.
  • MAKE Projects:
    • 145 projects with 171 industries: 40 MAKE-I (70% government-funded, ₹250 crore cap), 101 MAKE-II (industry-funded), 4 MAKE-III (ToT-based).
    • Requires 50-60% indigenous content, promoting local innovation.
  • Other Initiatives:
    • FDI Liberalisation: Up to 74% via automatic route, total FDI ₹5,516.16 crore since 2000.
    • TATA Aircraft Complex: Inaugurated October 2024 for C-295 aircraft, 40 of 56 to be made in India.
    • Manthan: Annual event at Aero India 2025 fostering innovation.
    • DTIS: Supports eight testing facilities, seven approved for aerospace/defence tech.
    • Domestic Procurement: 75% of modernisation budget (₹1,11,544 crore) for domestic industries in FY 2025-26.
  • Export Portfolio: Includes bulletproof jackets, Dornier aircraft, Chetak helicopters, lightweight torpedoes, and ‘Made in Bihar’ boots for the Russian Army.
  • Conclusion: India’s focus on self-reliance, innovation, and exports strengthens national security and economic growth, aiming for a leading role in global defence by 2029.

Key Terms:

  • Make in India: Initiative to boost indigenous manufacturing and self-reliance.
  • Atmanirbharta: Self-reliance in defence production and technology.
  • Defence Exports: Sale of Indian-made defence equipment to foreign nations.
  • Indigenous Content (IC): Percentage of locally produced components in defence items.
  • iDEX: Scheme fostering innovation in defence through startups and MSMEs.
  • SRIJAN: Platform to promote indigenisation of imported defence items.
  • PILs: Lists restricting procurement to domestic manufacturers after set timelines.
  • Defence Industrial Corridors: Zones in UP and TN to enhance defence manufacturing.
  • MAKE Projects: Categories promoting indigenous defence design and production.
  • FDI: Foreign Direct Investment, liberalised to attract global capital in defence.