Forging India's Arsenal: The Rise of Domestic Defence Manufacturing

India’s defence manufacturing sector is undergoing a historic transformation, driven by policy reforms, indigenous innovation, and strategic partnerships. As the country shifts from being the world’s largest arms importer to a major global defence producer, its pursuit of self-reliance is reshaping national security and economic growth.

- Kaushal Dighavkar

In the decade gone by, India has brought the focus back to its defence sector, realising it as an integral pillar of defence and economic development. India is now one of the world's five biggest military spenders, and policymakers seek to convert that expenditure to employment and high technology domestically. Programs such as Make in India (2014) and Aatmanirbhar Bharat (2020) emphasise the drive to develop indigenous capability and reduce dependence on imports. In fact, 75% of the defence budget for 2024-25 (approximately ₹1.72 lakh crore) was allocated to locally produced equipment. The outcome has been a ramp-up in domestic procurement and all-time high defence exports, while imports continue to form the basis of high-technology systems. Defence experts point out that the turnabout is part of a larger strategy: to reduce reliance on imported weapons and to "make most of our own defence equipment" with a decisive government ready to "buy India-first". Much is at stake, as the indigenous defence industry is regarded as essential not just for national security but also for technology advancement and economic development.

From State Monopolies to Private Players