Sunday, 23 Mar, 2025
As part of the deal, Rosoboronexport will transfer technology to Armoured Vehicles Nigam Limited (AVNL) in Avadi, Chennai, which is a subsidiary of the Heavy Vehicle Factory. Image Credits: IANS
India has achieved a historic milestone in indigenous defence production, recording its highest-ever growth in value terms for the financial year 2023-24, surpassing ₹1.27 lakh crore
The Ministry of Defence has entered into a $248 million agreement with Rosoboronexport (RoE) of the Russian Federation to procure 1,000 HP engines for the Indian Army's T-72 tanks. The engines will be supplied in fully assembled, semi-knocked down, and completely knocked down conditions.
As part of the deal, Rosoboronexport will transfer technology to Armoured Vehicles Nigam Limited (AVNL) in Avadi, Chennai, which is a subsidiary of the Heavy Vehicle Factory. This transfer will enable the integration and licensed production of the engines, contributing to the "Make in India" initiative in the defence sector. Currently, the T-72 tanks, which form the backbone of the Indian Army's armored fleet, are equipped with 780 HP engines. The upgrade to 1,000 HP engines is expected to significantly improve the tanks' mobility and offensive capabilities on the battlefield.
Alongside the ongoing upgrade of T-72 tanks, the Indian Army is developing plans to replace its over 40-year-old fleet of main battle tanks with future-ready combat vehicles (FRCVs) by 2030. These FRCVs will feature advanced weapon platforms and cutting-edge technology, designed to meet the evolving needs of the Army and enhance its operational effectiveness by addressing emerging threats across diverse terrains. The Indian Army currently operates three main categories of tanks: light, medium, and heavy. Among these, the MBT Arjun weighs around 60 tons, the T-90 around 48 tons, and the T-72 approximately 45 tons.
Following the May 2020 standoff with the Chinese People's Liberation Army (PLA) in Eastern Ladakh, the Indian Army was compelled to deploy additional T-72 and T-90 tanks to gain a tactical advantage over the adversary. The Chinese have since stationed a variety of armored vehicles, tanks, and mechanized infantry along the 3,488-kilometer Line of Actual Control (LAC).
India has achieved a historic milestone in indigenous defence production, recording its highest-ever growth in value terms for the financial year 2023-24, surpassing ₹1.27 lakh crore. In a press release, the Ministry of Defence credited this remarkable growth to the effective implementation of government policies and initiatives aimed at boosting domestic defence production. These efforts have facilitated greater involvement from private companies, including defence startups and MSMEs, in the country’s defence manufacturing sector.
India’s Defence production
Source: Department of Defence Production, Ministry of Defence
In the financial year 2023-24, approximately 79.2 percent of India's total defence production value came from Defence Public Sector Undertakings (DPSUs) and other public sector units (PSUs), while the private sector contributed the remaining 20.8 percent. This data highlights a steady increase in defence output from both the private sector and DPSUs/PSUs, with the sector as a whole being praised by Defence Minister Rajnath Singh for achieving record production levels.
Looking ahead, the government aims to nearly quadruple India's annual defence output to ₹3 lakh crore by 2028-2029, while more than doubling defence exports from the current ₹21,083 crore to ₹50,000 crore. For the fiscal year 2024-2025, the target for total defence output is ₹1.75 lakh crore, including ₹35,000 crore in exports.
In terms of defence exports, India surpassed the ₹21,000 crore mark for the first time in 2023-24. The Ministry of Defence has set an ambitious target of raising this figure to ₹50,000 crore within the next five years. Key exports over the past five years include advanced weapon simulators, torpedo loading mechanisms, night vision devices, armored protection vehicles, and coastal surveillance radar, among others. Currently, India exports defence equipment to over 90 countries, though the identities of these nations are not disclosed for strategic reasons. More than 100 Indian firms are actively involved in the export of defence products, with sophisticated systems like the 155 mm Advanced Towed Artillery Guns and Brahmos Missiles among the items being sold abroad.
India’s Defence Exports
Source: Department of Defence Production, Ministry of Defence
In order to promote indigenous defence production with special focus on participation of MSMEs and start-ups by bridging gaps in defence testing infrastructure in the country, Defence Testing Infrastructure Scheme has been launched to boost domestic defence and aerospace manufacturing.
Historically, India relied heavily on foreign countries for its defence needs, with about 65-70% of defence equipment being imported. However, this landscape has dramatically shifted, with around 65% of defence equipment now manufactured within India. This transformation reflects the country's commitment to self-reliance in this critical sector and underscores the strength of its defence industrial base, which comprises 16 Defence Public Sector Units (DPSUs), over 430 licensed companies, and approximately 16,000 Micro, Small, and Medium Enterprises (MSMEs).
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 adoption of Industry 4.0 technologies in defence production is revolutionizing India’s manufacturing capabilities, driving precision engineering and improving efficiency. Robotics and automation are minimizing human error, while smart factories allow for real-time monitoring and predictive maintenance. Backed by initiatives like the Defence Production and Export Promotion Policy (DPEPP), India’s indigenous defence sector is now equipped to produce advanced weaponry, aerospace components, and military-grade electronics that meet global standards.
Among the most transformative advancements in defence manufacturing is additive manufacturing (3D printing), which drastically cuts down lead times for producing critical components like missile casings, UAV (Unmanned Aerial Vehicle) parts, and protective gear. This technology enables rapid prototyping and design iterations, allowing India to respond quickly to emerging security challenges while reducing reliance on traditional, time-consuming manufacturing processes.
India's growing capabilities in advanced manufacturing are also opening doors for expanded defence exports. By producing world-class military equipment that aligns with international standards, India is strengthening its position in global defence markets. The government's target of reaching $5 billion in defence exports by 2025 is further supported by the implementation of smart manufacturing practices, positioning India as a dependable defence supplier to allied nations.
