When the nation is surrounded by enemies such as Pakistan, Bangladesh, and China, who are working tirelessly to weaken our great nation by employing various modes of operation on borders and international platforms, as well as developing militant naxals in various states while also developing intellectual urban naxals to cause unrest in various states. We already know that China seized vast tracts of land while Pandit Jawaharlal Nehru was Prime Minister, and Pakistan killed hundreds of civilians and our soldiers. If a country is militarily weak and lacks strong weaponry, armaments, and ammunition, other countries will take advantage of the situation, as we witnessed before 2014. The situation has altered throughout the last ten years of the Modi regime. Let’s look at how our defense position has altered, both militarily and fiscally.
India’s dedication to Atmanirbharta in defence is demonstrated by its transition from a major arms importer to an emerging hub for indigenous manufacture. In FY 2023-24, the Ministry of Defence reported a record Rs 1.27 lakh crore in domestic defense production, driven by strategic government programs. Previously reliant on international suppliers, India now prioritizes self-sufficient manufacturing to meet its security demands, confirming its ambition to improve national resilience and reduce reliance on external sources.
Rise in India’s Defense Production
India recorded the highest-ever growth in indigenous defense production in value terms during FY 2023-24, thanks to Prime Minister Narendra Modi’s successful implementation of government policies and programs aimed at achieving Atmanirbharta. Defense production has reached a new high of Rs 1,27,265 crore, up 174 per cent from Rs 46,429 crore in 2014-15, according to data from DPSUs, public sector units, and private companies.
Historically, India relied largely on other countries for its defense needs, with approximately 65-70 per cent of defense equipment imported. However, the environment has evolved considerably, with over 65 per cent of defense equipment now made in India. This transformation reflects the country’s commitment to self-sufficiency in this critical sector and highlights the strength of its defense industrial base, which includes 16 Defence Public Sector Units (DPSUs), over 430 licensed companies, and approximately 16,000 Micro, Small, and Medium Enterprises (MSMEs). Notably, 21 per cent of this output comes from the private sector, boosting India’s path to self-sufficiency.
Major defense platforms such as the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank (MBT) Arjun, Light Combat Aircraft (LCA) Tejas, submarines, frigates, corvettes, and the recently commissioned INS Vikrant have been developed as part of the Make in India initiative, demonstrating India’s growing defence sector capabilities. The annual defense production has exceeded Rs 1.27 lakh crore and is expected to surpass ₹1.75 lakh crore in the current fiscal year. India aims to increase defense output to Rs 3 lakh crore by 2029, establishing itself as a worldwide manufacturing hub.
India’s defense exports have skyrocketed from ₹686 crore in FY 2013-14 to Rs 21,083 crore in FY 2023-24, a staggering growth of nearly 30 times over the previous decade. This achievement is the result of effective policy reforms, initiatives, and improvements in the ease of doing business made by the government, all with the goal of achieving self-reliance in defence. Defence exports increased by 32.5% over the previous fiscal year, from Rs 15,920 crore.
India’s export portfolio includes a wide range of advanced defensive equipment, such as bulletproof jackets and helmets, Dornier (Do-228) planes, Chetak helicopters, quick interceptor boats, and lightweight torpedoes. A notable feature is the inclusion of ‘Made in Bihar’ boots in the Russian Army’s equipment, which represents a key milestone for Indian products in the global defence market while also demonstrating the country’s strong manufacturing standards.
India currently exports to over 100 countries, with the United States, France, and Armenia ranking first through third in terms of defense exports in 2023-24. Raksha Mantri Shri Rajnath Singh aims to expand defence exports to Rs 50,000 crore by 2029. This growing worldwide footprint demonstrates India’s commitment to becoming a trustworthy defense partner while also supporting economic growth through increased defense production and exports.
Key Government Initiatives
In recent years, the Indian government has launched a number of transformative projects aimed at increasing the country’s defense production capacity and reaching self-sufficiency. These policies aim to attract investment, improve domestic manufacturing, and streamline procurement procedures. From liberalizing foreign direct investment (FDI) limits to promoting indigenous manufacturing, these steps demonstrate a strong commitment to bolstering India’s defence industrial base. The following points summarize the important government efforts that have played a critical role in encouraging growth and innovation in the defense sector.
Liberalized FDI Policy: In 2020, the Foreign Direct Investment (FDI) ceiling in the defence sector was raised to 74 per cent via the Automatic Route for companies seeking new defence industrial licenses, and up to 100 per cent via the Government Route for those expected to result in access to modern technologies. As of February 9, 2024, defense firms have declared FDI of Rs 5,077 crore. The Ministry of Defence’s budget allocation for 2024-25 is Rs 6,21,940.85 crore, as part of the “Demand for Grant” tabled in Parliament during the ongoing Budget Session.
Priority for Domestic Procurement: The Defence Acquisition Procedure (DAP)-2020 emphasises the procurement of capital products from domestic sources.
Positive Indigenisation Lists: Notification of five ‘Positive Indigenization Lists’ totaling 509 items of services and five lists of 5,012 items from Defence Public Sector Undertakings (DPSUs), with a prohibition on imports after specified deadlines.
Simplified license Process: Streamlining the industrial license process and providing a longer validity time.
iDEX Scheme Launch: The Innovations for Defence Excellence (iDEX) project was developed to engage startups and Micro, Small, and Medium Enterprises (MSMEs) in defense innovation. Public Procurement Preference: The Public Procurement (Preference to Make in India) Order 2017 has been implemented to assist domestic producers.
Indigenization Portal: The Self-Reliant Initiatives through Joint Action (SRIJAN) portal has been launched to aid indigenization in Indian industry, especially MSMEs.
Defence Industrial Corridors: Two defence industrial corridors will be established, one in Uttar Pradesh and one in Tamil Nadu, to boost defence manufacture. Defence R&D is now open for industry and startups to stimulate innovation and collaboration.
Domestic Procurement Allocation: The Budget Estimates for 2024-25 allocate Rs 1,05,518.43 crore (75 per cent) of the total Rs 1,40,691.24 crore under the Capital Acquisition (Modernisation) Segment to domestic procurement.
India’s path to Atmanirbharta in defense demonstrates a revolutionary transition from reliance on imports to becoming a self-sufficient manufacturing center. The record results in domestic production and exports demonstrate the government’s commitment to strengthening national security and boosting economic growth through robust defense measures. With strategic policies in place, a rising emphasis on indigenization, and a thriving defense industrial base, India is well-positioned to not only meet its own security demands but also emerge as a major player in the global weapons market. The lofty aims established for future production and exports demonstrate a strong commitment to strengthening the country’s standing as a trustworthy defense partner around the world. As India continues to innovate and collaborate across industries, it is on its path to cementing its position as a strong player in global defense manufacture. (Source : PIB)
