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From Buyer to Maker India's Transformation in Defence Capability

October 08, 2025

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Business Standard

Air Force Day honours valour and celebrates India's rising defence ecosystem, where indigenous platforms and global partnerships reshape national security

- KISHORE JAYRAMAN

From Buyer to Maker India's Transformation in Defence Capability

As India celebrates Air Force Day, it is not just a moment to salute the courage and professionalism of the Indian Air Force (IAF) but also an opportunity to reflect on the remarkable transformation of India's defence landscape. The journey of the IAF from flying borrowed and imported aircraft in its early years to now operating and co-developing indigenous platforms, symbolises India's broader ambition of shifting from being a buyer of defence capabilities to becoming a maker, innovator, and exporter.

The Strategic Imperative for SelfReliance For decades, India was among the world's largest importers of defence equipment.

While this allowed the armed forces to acquire critical capabilities, it also created strategic vulnerabilities dependence on foreign suppliers, limited control over technology, and delays in procurement. The recognition that national security cannot be outsourced has driven a renewed push for self-reliance in defence production.

The Indian government's "Aatmanirbhar Bharat" initiative, and in particular the focus on Defence Industrial Corridors, Innovation for Defence Excellence (iDEX), and policy reforms such as the Defence Acquisition Procedure (DAP) 2020, have been key enablers of this shift. These reforms are designed not just to reduce import dependence but ay 4 also to stimulate domestic manufacturing, encourage joint ventures, and promote technology transfer.

According to the ministry, 65% of defence equipment is now manufactured in India. In 2024, out of 193 contracts signed, 177 (92%) were with Indian industry, amounting to $19.2Bn/1,68,922 crore (or 81% of the total awarded). This is a big step in comparison to 2014, when 65-70% of its defence needs were imported.

Incidentally, over the same period, exports rose to $2.76Bn (₹23,622 crore).

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