India's indigenisation test

India's aerospace and defence indigenisation drive has moved beyond assembly towards deeper capability building, but persistent gaps in propulsion, certification, scale and execution will determine whether it delivers true strategic autonomy.

- Pranav Vadehra

India’s aerospace and defence sector is undergoing its most consequential shift since liberalisation. As localisation targets give way to deeper capability building across platforms, subsystems and supplier ecosystems, the industry is confronting hard truths about execution, institutional reform and industrial scale that will determine whether indigenisation delivers a lasting strategic autonomy.

From policy push to manufacturing reality, India’s aerospace and defence indigenisation drive is moving beyond assembly towards deeper localisation — but structural gaps in propulsion, certification and scale could slow its transformation into a true manufacturing power.

Long defined by licensed production and dependence on foreign OEMs, the industry is now being reshaped by a push towards indigenisation. Policy reform, rising domestic demand and sharper strategic imperatives are converging to move India beyond assembly lines and into the more demanding terrain of design ownership, systems integration and manufacturing depth.

The transition is showing real progress, but the route to Indigenisation is uneven. Progress across platforms, subsystems and components is tangible. Yet, persistent gaps in propulsion, certification, scale and execution underscore what India is still getting wrong even as it gets many things right.

Policy meets strategic necessity

Indigenisation has evolved from an economic objective into a strategic imperative. Geopolitical uncertainty, supply-chain disruptions and sanctions risk have exposed the fragility of import-heavy defence procurement. In response, the government has deployed a layered policy framework to structurally favour domestic capability creation.