Introduction
India's domestic defence production reached a record Rs 1.27 lakh crore in FY 2023-24, rising further toward Rs 1.5 lakh crore in FY 2024-25. Transitioning from being one of the world's leading arms importers to building an Atmanirbhar defence ecosystem is vital for preserving strategic autonomy, mitigating external supply risks, and securing borders along a complex two-front security landscape.
Criticality of Defence Indigenisation for National Security
Developing indigenous capabilities across weapons systems, platforms, and critical components is imperative for long-term security architecture:
- Strategic Autonomy and Supply Chain Resilience: Excessive reliance on foreign original equipment manufacturers (OEMs) exposes operational readiness to geopolitical disruptions and sanctions, as demonstrated by delivery delays of critical systems during conflicts like the Russia-Ukraine war. Domestic production guarantees uninterrupted supply chains during prolonged standoffs.
- Customised Platforms for Unique Operational Terrains: Indigenous research addresses India-specific geographical challenges across high-altitude borders, desert battlegrounds, and the Indian Ocean Region. Examples include the high-altitude-capable Light Combat Helicopter (Prachand) and the indigenous 5th-generation Advanced Medium Combat Aircraft (AMCA) programme.
- Technological Sovereignty and Cyber Resilience: Modern warfare depends on software-intensive Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) networks. Relying on foreign platforms creates vulnerabilities to dormant backdoors, malware, and remote kill-switches. Indigenous software and hardware architecture safeguard critical command assets.
- Economic Dividends and Geopolitical Leverage: Establishing a robust domestic industrial base curtails foreign exchange outflows and expands defence diplomacy through exports, which reached Rs 23,622 crore in FY 2024-25 through platforms like the BrahMos cruise missile and Pinaka multi-barrel rocket launchers.
Policy Interventions Overcoming Structural Constraints
To overcome legacy challenges such as limited private participation, reliance on licensed assembly, and low domestic R&D expenditure, several structural shifts have been executed:
- Earmarked Capital Procurement: The Ministry of Defence has earmarked 75% of the capital acquisition budget (amounting to approximately Rs 1.05 lakh crore for FY 2024-25) specifically for procurement from domestic industries, ensuring guaranteed market demand.
- Positive Indigenisation Lists: The notification of phased embargo lists has restricted imports on thousands of weapon platforms, subsystems, and ammunition lines, promoting domestic sourcing.
- Promoting Innovation and Deep-Tech: Frameworks such as Innovations for Defence Excellence (iDEX) and the Acing Development of Innovative Technologies with iDEX (ADITI) scheme provide direct funding to MSMEs and startups working on cutting-edge defence technologies.
- Private Sector Participation and Industrial Corridors: Joint ventures and strategic partnerships—such as the Tata-Airbus C-295 aircraft manufacturing facility—alongside Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, have accelerated private manufacturing ecosystems.
Conclusion
Attaining strategic autonomy requires a definitive transition from licensed assembly to complete 'Design, Develop, and Manufacture' (DDM). Institutionalising civil-military fusion and deepening public and private investment in foundational technologies will ensure enduring national security and technological sovereignty.