India’s defence production has touched a record high of ₹1,27,000 crore (US$ 14.80 billion) in the financial year 2023-24, according to the Ministry of Defence. This marks a significant milestone under the Make in India initiative, which aims to enhance domestic manufacturing and reduce reliance on imports.
The most notable shift is in the origin of India’s defence equipment. From a time when 65-70% of defence needs were met through imports, India has now reversed that ratio — 65% of defence equipment is currently manufactured domestically. This reflects the country’s growing self-reliance and technological capacity in military production.
India’s defence sector is not only meeting local demand but also catering to international buyers. The list of exported equipment is expanding and currently includes:
An interesting and symbolic example of this progress is that boots manufactured in Bihar are now being used by the Russian Army, demonstrating that Indian defence exports are being accepted for their quality on the global stage.
India has set its sights on reaching ₹3,00,000 crore (US$ 34.88 billion) in defence production by 2029. This goal is part of a larger vision to transform the nation into a global defence manufacturing hub, creating jobs and boosting high-tech innovation.
Some of the key Indigenous defence systems developed in recent years include:
These domestically produced systems serve as a foundation for India’s increasing self-reliance in defence hardware and technology.
To support this growth trajectory, the Government of India revised its Foreign Direct Investment (FDI) policy in September 2020. The revised policy allows:
Since April 2000, India has received ₹5,516.16 crore (US$ 643.1 million) in FDI within the defence industry. These reforms are designed to facilitate joint ventures, enable technology transfers, and encourage global defence manufacturers to establish a presence in India.
India’s defence budget has also witnessed a consistent increase over the past decade, signalling long-term commitment to military modernisation and indigenisation. The budget has risen from:
This increase supports both procurement and infrastructure development, helping build a robust ecosystem around defence manufacturing.
India’s defence manufacturing journey is steadily moving from being import-dependent to globally competitive. With ambitious production goals, improved policy frameworks, increasing exports, and growing international recognition — as highlighted by the use of Indian-made boots by the Russian army — the nation is establishing itself as a serious player in the global defence landscape.
While challenges remain, the current trajectory suggests that India is well on course to achieve its vision of becoming a leading defence manufacturing hub by the end of the decade.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Mar 27, 2025, 12:44 PM IST
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