India close to becoming a self-reliant & globally competitive military manufacturing hub

India’s remarkable strides in defence production and exports underscore its transformation into a self-reliant and globally competitive Military manufacturing hub. The combination of strategic policy interventions, increased domestic participation, and a focus on indigenous innovation, has significantly strengthened the country’s defence capabilities.

The surge in production, the exponential rise in exports, and the success of initiatives like the Make in India reflect India’s commitment to achieving Atmanirbharta in defence.

With ambitious targets set for 2029, the nation is poised to further expand its global footprint, reinforcing its position as a dependable partner in the International Defence Market while enhancing national security and economic growth at the same time.

India’s progress on the defence export front

Over the past decade, India has consistently worked to enhance its defence manufacturing capabilities and reduce dependence on foreign arms imports.

According to the Defence Minister Rajnath Singh, India’s defence exports have reached an all-time high, a remarkable 34-fold increase over the past decade.

It is noteworthy that India exported defence goods worth Rs. 23,622 Crore in 2024–25 compared to just Rs. 686 Crore in 2013–14, accounting for over 3343 % increase in defence exports over the period. This dramatic rise underscores the growing strength of India’s defence sector fuelled by the vision of Atmanirbhar Bharat, Self-reliant India.

Driven by the Make in India initiative and strategic policy interventions such as Production-Linked Incentive (PLI) scheme the government has sought to:

1. Increase competitiveness of Indian manufacturers globally;
2. Boost exports;
3. Attract foreign investments, and;
4. Reduce dependence on overall imports, including the dependence on defence imports.

This progress is a testament to:

1. The success of government’s policy reforms;
2. Active participation from the private sector, and;
3. The efficiency of state-run defence public sector undertakings (DPSUs).

The latest figures detailed above place India among the fastest-growing defence exporters globally with key defence products being shipped to more than 85 countries, the remarkable growth, reflecting the increasing demand for Indian-manufactured defence equipment, including:

1. Missiles;
2. Naval systems;
3. Avionics, the electronic systems used on aircraft, including the areas like:

• Communication;
• Navigation;
• The display and management of multiple systems;
• The hundreds of systems that are fitted to aircraft to perform individual functions, and;
• Advanced weaponry.

Factors contributing to India’s record-breaking defence exports

The Indian government has undertaken several policy reforms to create an ecosystem that encourages domestic production and exports, including:

1. Simplification of export procedures;
2. Faster clearances;
3. Streamlining approval mechanisms making it easier for Indian firms to sell military equipment abroad;
4. Incentivising domestic production of critical defence components and equipment boosting manufacturing capabilities;
5. Increasing the Foreign Direct Investment (FDI) limit in defence to 74% via the automatic route, attracting global investments. The government is also reportedly considering removing a condition that allows foreign investment beyond 74 %, only if it results in access to modern technology.

In addition, two dedicated defence corridors in Uttar Pradesh and Tamil Nadu have been established to boost indigenous defence manufacturing.

Role of India’s private sector in defence manufacturing

1. Companies like Tata Advanced Systems, Bharat Forge, L&T Defence, and Mahindra Defence have played a crucial role in strengthening India’s export capabilities;
2. Collaboration with foreign firms has further enhanced expertise and technological advancements;
3. Focus on indigenous production has led to the development of cutting-edge military technology;

India has successfully exported BrahMos missiles to the Philippines with other nations showing interest. Also, the Advanced Light Helicopters (ALH) Dhruv manufactured by Hindustan Aeronautics Limited (HAL) are in demand in various countries.

India’s shipbuilding industry led by Mazagaon Dock Shipbuilders and GRSE (Garden Reach Shipbuilders & Engineers) has exported warships and patrol vessels to nations like the Maldives, Mauritius, and Sri Lanka.

India’s new status in the international arena

1. India has strengthened its defence partnerships with various countries, particularly in Southeast Asia, the Middle East, and Africa;
2. Nations like Vietnam, Indonesia, the Philippines, and the United Arab Emirates (UAE) have shown interest in acquiring Indian-made defence equipment;
3. The Indian government’s Defence Line of Credit (LoC) programme has also facilitated arms exports to friendly nations;
4. India’s emergence as a reliable defence exporter is gaining global recognition;
5. The country is no longer just an importer of advanced weaponry but, a manufacturer with the capability to supply critical defence equipment to the foreign militaries;
6. India’s participation in International Defence Expos, such as DefExpo and Aero India, has further boosted its global outreach, allowing Indian defence firms to showcase their products on a global stage;
7. India’s involvement in co-development and co-production with major global players has opened new avenues for exports;
8. Collaborative efforts with nations like the United States, France, Israel, and Russia have enhanced technological capabilities and widened the scope for international sales;
9. India’s record-breaking defence exports in FY 2024-25 mark a defining moment in the nation’s defence manufacturing journey;
10. The impressive $2.76 billion milestone in FY 2025 is not    just a number, but reflects India’s transformation into a Global Defence Exporter.

With continued policy support, technological advancements and strategic partnerships, India is well on track to achieve its ambitious target of $5 billion in annual defence exports by 2028.

Epilogue

As the Nation marches ahead in its quest for self-reliance, this achievement strengthens India’s position as a formidable player in the global defence industry, ensuring a future, where Make in India resonates beyond borders according to experts.

India’s defence and aerospace ecosystem is also expanding rapidly with the establishment of multiple defence hubs and increased collaboration with global players, many of whom have already shared or expressed willingness to share critical technologies with Indian counterparts.

The government has now set an ambitious target of achieving annual defence exports of Rs.50,000 crore by 2029 aiming to bolster India’s footprint in the global defence market under the visionary leadership of Prime Minister Narendra Modi.

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