For decades after independence, India was the world’s biggest arms importer, sourcing everything from artillery to fighter jets from abroad. That dependence left the country strategically vulnerable.
Today, the equation is changing.
Under the banner of Atmanirbhar Bharat (Self-Reliant India), the government is pushing to replace imports with homegrown equipment, and even sell it abroad. The shift is being driven by policy reform, industrial restructuring and a wave of indigenous technological breakthroughs.
Breaking the import habit
Until recently, more than two-thirds of India’s defence needs came from foreign suppliers. The arsenal was filled with Bofors guns, Soviet MiG fighters and imported tanks. That began to change in 2014 with the launch of Make in India, which put defence manufacturing at the heart of its agenda.
The results are measurable:
Production surge: Indigenous defence output hit Rs 1.51 lakh crore in FY 2024–25—an 18% growth over the previous year. The target for 2029 is Rs 3 lakh crore.
Procurement shift: Under the Defence Acquisition Procedure (DAP) 2020, “Buy Indian (IDDM)” gets top priority. In FY 2024–25, the Ministry of Defence signed a record 177 contracts with domestic industry, amounting to Rs 1.68 lakh crore. Currently, 65% of India’s defence equipment is made domestically.
The policy playbook
The government’s push for self-reliance is backed by a dense framework of policies and institutions:
Defence Production and Export Promotion Policy (DPEPP) 2020 – The master plan to reach Rs 3 lakh crore in output and Rs 50,000 crore in exports by 2029.
Positive Indigenisation Lists – Five lists banning imports of over 5,500 items, guaranteeing orders for domestic producers.
Innovations for Defence Excellence (iDEX) – Launched in 2018 to bring startups and MSMEs into defence R&D. Success stories include drone-based surveillance systems from Sagar Defence Engineering. The government has earmarked additional funds for iDEX to accelerate innovation.
Defence industrial corridors – Two manufacturing hubs in Uttar Pradesh and Tamil Nadu to attract investment and create supply chains.
Corporatisation of the Ordnance Factory Board – In 2021, the OFB was split into seven defence PSUs to boost efficiency and competitiveness.
FDI reforms – The government has liberalised the Foreign Direct Investment policy in defence, allowing up to 74% through the automatic route and 100% with government approval. This aims to attract foreign players to set up manufacturing in India and facilitate technology transfer.
The export surge
A decade ago, India’s defence exports were barely a blip, rs 686 crore in FY 2013–14. By FY 2024–25, they had hit a record Rs 23,622 crore, a 34-fold increase over the decade.
Private sector lead: Around 60% of exports now come from private companies.
Global reach: India sells to over 100 countries, with major buyers including the USA, France, and Armenia. The portfolio ranges from bulletproof jackets and patrol boats to advanced systems like the BrahMos cruise missile.
High-profile wins: The BrahMos missile deal with the Philippines put India on the map as a supplier of advanced weaponry. Talks are underway with other nations to export the LCA Tejas and the Akash missile system.
Flagship indigenous projects
LCA Tejas – A homegrown fighter jet with over 85 private firms in its supply chain. The Mk1A variant, featuring upgraded radar, avionics, and weapons, is in its final development stage, with first deliveries to the IAF expected by the end of 2025.
Work is also progressing on the more advanced Tejas Mark 2 and the Advanced Medium Combat Aircraft (AMCA), a fifth-generation stealth fighter, with the AMCA programme’s execution model formally approved.
INS Vikrant – India’s first indigenously designed and built aircraft carrier, commissioned in 2022, marking a leap in shipbuilding capability.
Missile systems – From the Agni and Prithvi series to the BrahMos, India’s missile programme has matured into one of the world’s most diverse. The indigenous Astra Mk-1 air-to-air missile has also been successfully test-fired from the LCA Tejas platform.
The road ahead
Self-reliance is still a work in progress. Engines, sensors and some high-tech components still have to be imported, and major projects can stretch over decades. Scaling production fast enough to meet both domestic needs and export demand is still a challenge.
The government’s policy of attracting foreign defence companies to invest and manufacture in India, along with a renewed focus on private–public partnerships, is central to bridging these gaps and accelerating development.
But the direction is clear. With targets set, policies in place and industry capacity growing, India is building more than just weapons -- it is building strategic autonomy. That means fewer dependencies, stronger bargaining power, and a credible claim to being not just a buyer in the global arms market, but a supplier shaping it.
Today, the equation is changing.
Under the banner of Atmanirbhar Bharat (Self-Reliant India), the government is pushing to replace imports with homegrown equipment, and even sell it abroad. The shift is being driven by policy reform, industrial restructuring and a wave of indigenous technological breakthroughs.
Breaking the import habit
Until recently, more than two-thirds of India’s defence needs came from foreign suppliers. The arsenal was filled with Bofors guns, Soviet MiG fighters and imported tanks. That began to change in 2014 with the launch of Make in India, which put defence manufacturing at the heart of its agenda.
The results are measurable:
Production surge: Indigenous defence output hit Rs 1.51 lakh crore in FY 2024–25—an 18% growth over the previous year. The target for 2029 is Rs 3 lakh crore.
Procurement shift: Under the Defence Acquisition Procedure (DAP) 2020, “Buy Indian (IDDM)” gets top priority. In FY 2024–25, the Ministry of Defence signed a record 177 contracts with domestic industry, amounting to Rs 1.68 lakh crore. Currently, 65% of India’s defence equipment is made domestically.
The policy playbook
The government’s push for self-reliance is backed by a dense framework of policies and institutions:
Defence Production and Export Promotion Policy (DPEPP) 2020 – The master plan to reach Rs 3 lakh crore in output and Rs 50,000 crore in exports by 2029.
Positive Indigenisation Lists – Five lists banning imports of over 5,500 items, guaranteeing orders for domestic producers.
Innovations for Defence Excellence (iDEX) – Launched in 2018 to bring startups and MSMEs into defence R&D. Success stories include drone-based surveillance systems from Sagar Defence Engineering. The government has earmarked additional funds for iDEX to accelerate innovation.
Defence industrial corridors – Two manufacturing hubs in Uttar Pradesh and Tamil Nadu to attract investment and create supply chains.
Corporatisation of the Ordnance Factory Board – In 2021, the OFB was split into seven defence PSUs to boost efficiency and competitiveness.
FDI reforms – The government has liberalised the Foreign Direct Investment policy in defence, allowing up to 74% through the automatic route and 100% with government approval. This aims to attract foreign players to set up manufacturing in India and facilitate technology transfer.
The export surge
A decade ago, India’s defence exports were barely a blip, rs 686 crore in FY 2013–14. By FY 2024–25, they had hit a record Rs 23,622 crore, a 34-fold increase over the decade.
Private sector lead: Around 60% of exports now come from private companies.
Global reach: India sells to over 100 countries, with major buyers including the USA, France, and Armenia. The portfolio ranges from bulletproof jackets and patrol boats to advanced systems like the BrahMos cruise missile.
High-profile wins: The BrahMos missile deal with the Philippines put India on the map as a supplier of advanced weaponry. Talks are underway with other nations to export the LCA Tejas and the Akash missile system.
Flagship indigenous projects
LCA Tejas – A homegrown fighter jet with over 85 private firms in its supply chain. The Mk1A variant, featuring upgraded radar, avionics, and weapons, is in its final development stage, with first deliveries to the IAF expected by the end of 2025.
Work is also progressing on the more advanced Tejas Mark 2 and the Advanced Medium Combat Aircraft (AMCA), a fifth-generation stealth fighter, with the AMCA programme’s execution model formally approved.
INS Vikrant – India’s first indigenously designed and built aircraft carrier, commissioned in 2022, marking a leap in shipbuilding capability.
Missile systems – From the Agni and Prithvi series to the BrahMos, India’s missile programme has matured into one of the world’s most diverse. The indigenous Astra Mk-1 air-to-air missile has also been successfully test-fired from the LCA Tejas platform.
The road ahead
Self-reliance is still a work in progress. Engines, sensors and some high-tech components still have to be imported, and major projects can stretch over decades. Scaling production fast enough to meet both domestic needs and export demand is still a challenge.
The government’s policy of attracting foreign defence companies to invest and manufacture in India, along with a renewed focus on private–public partnerships, is central to bridging these gaps and accelerating development.
But the direction is clear. With targets set, policies in place and industry capacity growing, India is building more than just weapons -- it is building strategic autonomy. That means fewer dependencies, stronger bargaining power, and a credible claim to being not just a buyer in the global arms market, but a supplier shaping it.
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