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How far has India come in achieving self-reliance in defence production?

India, which once depended heavily on foreign countries for arms supplies, is increasingly becoming self-reliant in defence production

In the financial year 2023-24, the ministry of defence reported Rs 1.27 lakh crore in domestic defence production, suggesting that India, which once heavily relied on foreign suppliers for arms, is becoming increasingly self-reliant in defence manufacturing to meet its security needs.

The ministry claimed that India has transformed from a major arms importer to an emerging centre for indigenous production.

“India has achieved the highest-ever growth in indigenous defence production in value terms during financial year (FY) 2023-24, driven by the successful implementation of government policies and initiatives led by Prime Minister Narendra Modi, focusing on attaining Atmanirbharta,” the defence ministry said in a release.

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Data from all Defence Public Sector Undertakings (DPSUs), other public sector units manufacturing defence items, and private companies, reveal that the value of defence production has gone up to a record high of Rs 1,27,265 crore—an impressive increase of approximately 174 per cent from RS 46,429 crore in 2014-15.

Earlier, India used to import about 65-70 per cent of the defence equipment, while today, around 65 per cent of the equipment is manufactured in India, underscoring the strength of the country's defence industrial base, which comprises 16 DPSUs, over 430 licensed companies, and approximately 16,000 Micro, Small, and Medium Enterprises.

The private sector accounts for 21 per cent of the defence production.

“As part of the 'Make in India' initiative, major defence 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, reflecting the growing capabilities of India's defence sector,” the defence ministry stated.

The annual defence production is also on track to reach a target of Rs 1.75 lakh crore in the current fiscal year, and the plan is to achieve Rs 3 lakh crore in defence production by 2029.

India's defence exports

India's defence exports have reached an all-time high, from Rs 686 crore in FY 2013-14 to Rs 21,083 crore in FY 2023-24. According to defence ministry, effective policy reforms, initiatives, and improvements in the ease of doing business implemented by the government aimed at attaining self-reliance in defence are the reasons for this growth.

India plans to achieve the target of Rs 50,000 crore in defence exports by 2029.

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India's export portfolio boasts a diverse range of advanced defence equipment, including bulletproof jackets and helmets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes.

Currently, India exports to over 100 nations, with the top three destinations in 2023-24 being the USA, France, and Armenia.

“India's journey toward Atmanirbharta in defence reflects a transformative shift from reliance on imports to becoming a self-sufficient manufacturing hub...With strategic policies in place, a growing emphasis on indigenization, and a vibrant defence industrial base, India is poised to not only meet its own security needs but also emerge as a key player in the global arms market,” the defence ministry added.

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