India's defence industry is witnessing a remarkable shift from a reliance on imports to establishing a robust domestic manufacturing ecosystem. The recent crash of a Tejas demonstration aircraft at the Dubai Airshow has highlighted the importance of developing a resilient aerospace and defence framework alongside successful design efforts. This incident underlines the learning process that accompanies the transition from importing military hardware to innovating and advancing indigenous capabilities. Despite setbacks, India continues to forge ahead in building a self-reliant defence sector.
According to the Ministry of Defence, India's domestic defence production reached an unprecedented Rs. 1.27 lakh crore in FY 2023-24, marking a 174% increase compared to FY 2014-15. Defence exports also soared to Rs. 21,083 crore during the same period, representing a 32.5% rise from the previous year and a 30-fold increase over the last decade. These statistics signal a significant transformation in India's defence manufacturing landscape.
In FY 2024-25, India achieved its highest-ever defence production of Rs. 1.54 lakh crore. A striking change in procurement trends was evident as the Ministry of Defence signed 193 contracts valued at approximately Rs. 2,09,050 crore, with 177 contracts worth about Rs. 1,68,922 crore directed to domestic firms—accounting for roughly 92% of the total contract value. This reflects a drastic reduction in import dependence, with around 65% of defence equipment now produced domestically.
The Indigenous missile and rocket programmes are a testament to this progress. Notable systems such as the Akash surface-to-air missile, Astra air-to-air missile, and new tactical ballistic missiles like Pralay underline India's growing capabilities. Additionally, the deployment of domestically developed drones, including the Nagastra-1 and SWITCH tactical UAV, along with advanced systems like Kaala Bhairava and Ghatak, showcases the country’s broadening technological prowess. The indigenisation of over 14,000 items under initiatives like SRIJAN further exemplifies the substantial growth in capabilities.
Significant advancements are visible as platforms such as the Pinaka rocket system and the Light Combat Aircraft Tejas are now entering frontline service. This shift illustrates that India is manufacturing not only for export or display but primarily for its operational requirements, marking an important stage in the nation's industrial maturity.
Operation Sindoor demonstrated India's indigenisation efforts, where domestic air defence, missile, and surveillance systems were deployed effectively in real operational contexts. This reflects the defence industry’s capacity to produce, integrate, and sustain major assets within operational environments.
Moreover, the involvement of the private sector, including start-ups and MSMEs, is enhancing the defence manufacturing ecosystem, with developments in propulsion, electronics, composites, and autonomous systems. The government’s supportive policy framework encourages broader participation in defence projects, which is vital for scaling production and competitiveness.
Despite considerable advancements, India remains dependent on imports for critical technologies such as high-performance engines and advanced sensors. Challenges such as production delays and scaling from prototypes to full-scale manufacturing persist. Addressing these issues is essential for achieving true self-reliance in defence.
In conclusion, India has made substantial strides in defence manufacturing, with production and exports on the rise, and indigenous deployment flourishing. However, achieving full autonomy requires mastering key technologies and establishing reliable manufacturing pipelines. With ambitious targets of Rs. 3 lakh crore in production and Rs. 50,000 crore in exports set for 2029, India's transition from an importer to a significant global defence player is progressing, but the journey ahead demands sustained focus and investment.