India’s defense production has reached new heights, achieving significant milestones that showcase the country’s transformation into a global defense manufacturing powerhouse. Under the ambitious “Make in India” initiative, defense production soared to $15.3 billion in the fiscal year 2023-24—a staggering 174% increase from $5.6 billion in 2014-15. These accomplishments reflect India’s relentless drive toward self-reliance and its emergence as a major player in the global defense industry.
The Ministry of Defense revealed that 193 contracts worth over $25.3 billion were signed during the fiscal year 2024-25, nearly doubling previous figures. Notably, 92% of these contracts, equating to $20.4 billion, were awarded to domestic manufacturers, emphasizing the government’s commitment to strengthening indigenous production capabilities and reducing reliance on foreign imports.
India’s defense exports also saw unprecedented growth, surpassing $2.5 billion in 2023-24—a thirtyfold increase over the past decade. The export portfolio spans over 100 countries, with the United States, France, and Armenia emerging as the largest buyers. Products ranging from lightweight torpedoes and Dornier aircraft to ‘Made in Bihar’ boots for the Russian Army illustrate the diversity and quality of India’s defense manufacturing.
Key Acquisitions and Indigenous Projects
Several landmark acquisitions underscored India’s focus on domestic innovation. The Ministry of Defense approved the procurement of 156 Light Combat Helicopters (LCH) Prachand, worth $7.5 billion, designed for high-altitude operations. With more than 65% indigenous content and partnerships with over 250 domestic companies, these helicopters exemplify India’s engineering prowess. Their production is expected to generate over 8,500 jobs, bolstering economic growth and technological innovation.
The government also sanctioned 307 Advanced Towed Artillery Gun Systems (ATAGS), developed in collaboration with DRDO, Bharat Forge, and Tata Advanced Systems. These artillery systems, valued at $850 million, are equipped with cutting-edge fire-control and targeting technologies and have proven their efficacy across diverse terrains.
India took another bold step by signing contracts for its first wet-leased Flight Refueling Aircraft (FRA), enabling advanced air-to-air refueling training for Indian Air Force and Navy pilots. The deployment of innovative naval missile systems further highlights India’s growing military capabilities.
Strategic Policy Reforms Driving Growth
A series of transformative policies and initiatives have driven this growth. Programs like the Self-Reliant Initiatives through Joint Action (SRIJAN) and the Positive Indigenization Lists have collectively resulted in the indigenization of over 17,000 items, reducing reliance on imports. The introduction of defense industrial corridors in Uttar Pradesh and Tamil Nadu has attracted investments exceeding $1 billion, fostering innovation, manufacturing, and job creation.
Additionally, the Innovations for Defense Excellence (iDEX) program has played a pivotal role in nurturing startups and MSMEs. With grants up to $3 million for innovative projects in areas like artificial intelligence, cyber technology, and quantum systems, iDEX has empowered over 600 startups to collaborate on defense technologies. This initiative alone has led to contracts worth $290 million being awarded to small enterprises, cementing India’s status as an innovation hub.
Ambitious Goals for the Future
Looking ahead, the government has set an ambitious target of achieving $37 billion in defense production and $6 billion in exports by 2029. This vision aligns with India’s broader strategy to position itself as a leader in advanced defense manufacturing, creating cutting-edge technologies while enhancing national security.
The annual Aero India exhibition and events like SAMARTHYA continue to spotlight India’s breakthroughs in areas like AI-driven analytics, counter-drone technology, and quantum-secure communication systems. These platforms not only showcase India’s technological capabilities but also reinforce its role as a trusted global partner in defense and security.
Through visionary policies, robust innovation ecosystems, and unwavering focus on self-reliance, India is charting an extraordinary path toward becoming one of the world’s premier defense manufacturing hubs. This remarkable journey not only strengthens the country’s defense capabilities but also fuels economic growth, creating a lasting impact on both the national and international stages.
