India Achieves 65 Percent Indigenous Defence Manufacturing

India has made significant strides in self-reliance in the defence sector, with 65 percent of its defence equipment now being manufactured domestically—a remarkable shift from the earlier 65-70 percent import dependency. The Ministry of Defence, in a fact sheet released on Tuesday, highlighted this transformation, attributing it to the 'Make in India' initiative, which has driven defence production to an all-time high of Rs 1.27 lakh crore in 2023-24.

India’s defence exports have expanded significantly, including products like bulletproof jackets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes. Notably, "Made in Bihar" boots are now part of the Russian Army’s gear, underscoring India’s rising manufacturing standards, the ministry noted.

The government aims to further boost defence production to Rs 3 lakh crore by 2029, reinforcing India's position as a global defence manufacturing hub. This growth is powered by indigenous military platforms such as the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank Arjun, Light Combat Aircraft Tejas, Advanced Light Helicopter, Akash Missile System, and Weapon Locating Radar. The naval sector has also witnessed advancements with the development of indigenous aircraft carriers, destroyers, submarines, and offshore patrol vessels.

To attract foreign investment, the government liberalized Foreign Direct Investment (FDI) norms in September 2020, allowing up to 74 percent FDI through the automatic route and beyond that through government approval. Since April 2000, the defence sector has received a total FDI inflow of Rs 5,516.16 crore.

India’s defence budget has also seen a substantial rise, growing from Rs 2.53 lakh crore in 2013-14 to Rs 6.81 lakh crore in 2025-26. This increase underscores the government’s commitment to modernising military infrastructure and boosting domestic production capabilities.

The Cabinet Committee on Security recently approved the procurement of 307 units of 155mm/52 caliber ATAGS along with 327 High Mobility 6x6 Gun Towing Vehicles for 15 Artillery Regiments under the ‘Buy Indian–Indigenously Designed, Developed, and Manufactured (IDDM)’ category. The deal, valued at Rs 7,000 crore, is expected to significantly enhance the Army’s firepower.

Developed by the Defence Research and Development Organisation (DRDO) in collaboration with Bharat Forge and Tata Advanced Systems, the ATAGS is a state-of-the-art artillery system with a range exceeding 40 km, advanced fire control, automated loading, precision targeting, and efficient recoil management. The system has been rigorously tested in diverse terrains by the Indian Army.

India’s growing defence manufacturing ecosystem includes 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed companies, and approximately 16,000 Micro, Small, and Medium Enterprises (MSMEs). The private sector also plays a crucial role, contributing 21 percent to total defence production.

With modern warships, fighter jets, artillery systems, and advanced weaponry now being built domestically, India has emerged as a key player in the global defence manufacturing landscape. The government’s emphasis on indigenous production is expected to further reduce import dependency while positioning the country as a major exporter of defence equipment.

Also Read: T-90 Tanks, Torpedoes, and AEW&C Systems: India’s Rs 54,000 Cr Defence Revamp