Blitz Bureau
NEW DELHI: Defence production in the country has grown at an extraordinary pace since the launch of the ‘Make in India’ initiative, reaching a record Rs 1.27 lakh crore in FY 2023-24.
Once dependent on foreign suppliers, the country now stands as a rising force in indigenous manufacturing, shaping its military strength through homegrown capabilities. The shift reflects a strong commitment to self-reliance, ensuring that India not only meets its security needs but also builds a robust defence industry that contributes to economic growth.
Strategic policies have fuelled this momentum, encouraging private participation, technological innovation, and the development of advanced military platforms. The surge in the defence budget, from Rs 2.53 lakh crore in 2013-14 to Rs 6.81 lakh crore in 2025-26, underlines the nation’s determination to strengthen its military infrastructure.
ATAGS approval
This commitment to self-reliance and modernisation is reflected in the recent approval by the Cabinet Committee on Security (CCS) for the procurement of the Advanced Towed Artillery Gun System (ATAGS), a significant step in enhancing the Army’s firepower. The deal includes 307 units of 155mm/52 caliber guns along with 327 High Mobility 6×6 Gun Towing Vehicles, equipping 15 Artillery Regiments under the Buy Indian–Indigenously Designed, Developed, and Manufactured (IDDM) category, at an estimated cost of ₹7,000 crore.
Developed by DRDO with Bharat Forge and Tata Advanced Systems, ATAGS is a cutting-edge artillery system with a 40+ km range, advanced fire control, precision targeting, automated loading, and recoil management, thoroughly tested by the Indian Army in all terrains.
With modern warships, fighter jets, artillery systems, and cutting-edge weaponry being built within the country, India is now a key player in the global defence manufacturing landscape.
Surge in production
India has achieved the highest-ever growth in indigenous defence production in value terms during Financial Year 2023-24, driven by the successful implementation of Government policies and initiatives led by Prime Minister Shri Narendra Modi, focusing on attaining Atmanirbharta. The value of defence production has surged to a record high of Rs 1,27,434 crore, marking an impressive 174 per cent increase from Rs 46,429 crore in 2014-15, according to data from all defence public sector undertakings (DPSUs), other public sector units manufacturing defence items, and private companies.
This growth has been bolstered by the Make in India initiative, which has enabled the development of advanced military platforms. Sixty-five per cent of defence equipment is now manufactured domestically, a significant shift from the earlier 65-70 pc import dependency, showcasing India’s selfreliance in defence. A robust defence industrial base includes 16 DPSUs, over 430 licensed companies, and approximately 16,000 MSMEs, strengthening indigenous production capabilities. The private sector plays a crucial role, contributing 21 pc to total defence production, fostering innovation and efficiency. India’s expanding global footprint in defence manufacturing is a direct result of its commitment to self-reliance and strategic policy interventions. Defence exports have surged from Rs 686 crore in FY 2013-14 to an all-time high of Rs 21,083 crore in FY 2023-24, marking a 30-fold increase over the past decade.
Excellence innovations
Launched in April 2018, Innovations for Defence Excellence (iDEX) has created a thriving ecosystem for innovation and technology development in defence and aerospace. By engaging MSMEs, startups, individual innovators, R&D institutes, and academia, iDEX has provided grants of up to Rs 1.5 crore for developing innovative technologies.
The scheme has three key objectives: to facilitate rapid development of new, indigenised, and innovative technologies for the defence and aerospace sector; to create a culture of engagement with innovative startups; and to empower a culture of technology co-creation and co-innovation.
The recently launched ADITI scheme aims to support critical and strategic technologies such as satellite communication, advanced cyber technology, autonomous weapons, semiconductors, artificial intelligence, quantum technology, nuclear technologies, and underwater surveillance. Reinforcing its commitment to supporting startups and MSMEs, the Ministry of Defence has also cleared procurement of 43 items worth over Rs 2,400 crore from iDEX startups and MSMEs for the armed forces as of February 2025.
Aero India event
The success story of indigenisation and innovation in the defence sector was highlighted at the Aero India 2025 event ‘Samarthya’, which showcased India’s progress in defence manufacturing. The event featured 33 major indigenised items, including 24 developed by DPSUs, DRDO, and the Indian Navy, along with nine successful innovation projects from iDEX.
The event further highlighted breakthroughs in AI-driven analytical platforms, next-generation surveillance systems, quantumsecure communication technologies, and counter-drone measures. Efforts are ongoing to bridge the gap between the Indian Army’s operational challenges and the innovative solutions developed by academia, industry startups, and research institutions.
Two Defence Industrial Corridors (DICs) have been set up in Uttar Pradesh and Tamil Nadu to boost defence manufacturing. These corridors provide incentives to companies investing in the sector.
The Government has introduced several measures to improve ease-of-doing business in the defence manufacturing sector.
