Summary:
Recording unprecedented growth, India's defence production reached Rs. 1,27,000 crore (US$ 14.80 billion) in FY24, driven by the Make in India initiative, according to the Ministry of Defence. Demonstrating a major shift from its previous 65-70% reliance on imports, the country now manufactures 65% of its defence equipment domestically, reflecting increased self-reliance. Indianmade defence products, including bulletproof jackets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats and lightweight torpedoes, are exported globally. Notably, boots produced in Bihar are now worn by the Russian Army, underscoring India's manufacturing excellence.
To further its global standing as a defence manufacturing hub, India has set an ambitious target of reaching Rs. 3,00,000 crore (US$ 34.88 billion) in defence production by 2029. Among the indigenously developed military assets are the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank Arjun, Light Combat Aircraft (LCA) Tejas, Akash Missile System and Indigenous Aircraft Carriers. Supporting foreign investments, India’s revised FDI policy allows up to 74% FDI via the automatic route and beyond with government approval, attracting Rs. 5,516.16 crore (US$ 643.1 million) in the defence sector since April 2000. Highlighting its commitment to military modernisation and self-reliance, India has increased its defence budget significantly, from Rs. 2,53,000 crore (US$ 29.43 billion) in FY14 to Rs. 6,81,000 crore (US$ 79.24 billion) in FY26. This financial commitment solidifies the nation's strategic goals and boosts its defence capabilities on the global stage.
Source: IBEF
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