Thursday, 11 Sep, 2025
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh recently approved capital acquisition proposals worth nearly ₹67,000 crore to bolster the combat readiness and operational capabilities of the Indian Armed Forces. Image Source: IANS
Strategic policies have been crucial in accelerating this progress, promoting private sector involvement, fostering technological innovation, and advancing the creation of sophisticated military platforms.
India’s defence manufacturing output has touched a record ₹1,50,590 crore in FY 2024-25, marking an 18 percent jump from the previous year’s ₹1.27 lakh crore and a striking 90 percent surge since FY 2019-20, when production stood at ₹79,071 crore. Defence Minister Rajnath Singh hailed the achievement as a testament to the country’s strengthening defence industrial base, crediting the Department of Defence Production, Defence Public Sector Undertakings (DPSUs), public manufacturers, and private industry for their role in driving growth. DPSUs and other public sector units accounted for around 77 percent of the total output, while the private sector contributed 23 percent, up from 21 percent in FY 2023-24. The figures underscore the rising influence of private players in India’s defence ecosystem.
Officials attribute the sustained year-on-year growth in both segments- 16 percent for DPSUs and 28 percent for private firms in FY 2024-25 to sweeping policy reforms, improved ease of doing business, and a decade-long push for indigenisation.
Strategic policies have been crucial in accelerating this progress, promoting private sector involvement, fostering technological innovation, and advancing the creation of sophisticated military platforms. The significant increase in the defence budget rising from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26 underscores the nation's unwavering commitment to bolstering its military infrastructure
India’s Defence production
Source: Department of Defence Production, Ministry of Defence
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh recently approved capital acquisition proposals worth nearly ₹67,000 crore to bolster the combat readiness and operational capabilities of the Indian Armed Forces. The clearances, granted under the Acceptance of Necessity (AoN) framework, cover critical procurements for the Army, Navy, and Air Force, furthering India’s drive towards modernisation and indigenisation in defence.
For the Army, the DAC sanctioned the purchase of Thermal Imager-based Driver Night Sights for BMP infantry fighting vehicles, a move expected to significantly enhance night driving capability and improve the mobility of mechanised infantry in low-visibility conditions.
The Navy’s approvals include Compact Autonomous Surface Craft, BrahMos Fire Control Systems and Launchers, and an upgraded BARAK-1 Point Defence Missile System. The autonomous craft will strengthen anti-submarine warfare capabilities, aiding in the detection, classification, and neutralisation of threats, thereby enhancing maritime security.
The Air Force will acquire mountain radars to bolster high-altitude air surveillance and upgrade its SAKSHAM/SPYDER weapon systems. Integrating the SPYDER with the Integrated Air Command and Control System (IACCS) will provide a significant boost to India’s air defence network.
In a tri-service enhancement, the DAC has also cleared the procurement of Medium Altitude Long Endurance (MALE) Remotely Piloted Aircraft (RPAs), capable of carrying multiple payloads and weapons for extended surveillance and precision strike missions, ensuring round-the-clock operational capability. Additionally, the council approved measures to sustain the C-17 and C-130J transport aircraft fleets and sanctioned a comprehensive annual maintenance contract for the S-400 long-range air defence missile system, ensuring these strategic assets remain fully mission-ready.
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 ₹23,622 crore to ₹50,000 crore. India has transitioned from being heavily import-dependent to increasingly prioritising self-reliance and indigenous defence manufacturing. In a significant boost to exports, the country shipped a diverse range of products, including ammunition, arms, sub-systems, complete systems, and components to nearly 80 nations in the recently concluded financial year.
India’s Defence Exports
Source: Department of Defence Production, Ministry of Defence
The Department of Defence Production operates a dedicated portal for submitting and processing export authorisation requests. In FY 2024-25, it issued 1,762 export authorisations, up from 1,507 the previous year, marking a 16.92 percent increase. The number of registered exporters also rose by 17.4 percent over the same period.
DPSUs recorded a sharp 42.85 percent jump in exports in FY 2024-25, reflecting growing global demand for Indian defence products and the sector’s ability to integrate into international supply chains, the Ministry of Defence (MoD) has said. During the year, private sector exports stood at ₹15,233 crore, while DPSUs contributed ₹8,389 crore, both higher than FY 2023-24 figures, when private exports totalled ₹15,209 crore and DPSU exports were ₹5,874 crore.
According to the MoD, a series of policy reforms in recent years has strengthened the sector. Measures include simplifying industrial licensing procedures, removing certain components from licensing requirements, and extending licence validity periods. In the past fiscal year, the Standard Operating Procedure for export authorisation was also streamlined, with new provisions introduced to further boost India’s defence export potential.
The Department of Defence Production (DDP) and the Department of Military Affairs (DMA) have released five Positive Indigenisation Lists (PILs) covering a range of items, including LRUs, assemblies, sub-assemblies, sub-systems, spares, components, and high-end materials. These lists establish clear timelines for when procurement will be restricted to domestic manufacturers. As of February 2025, more than 3,000 of the over 5,500 listed items have been successfully indigenised. Notable technologies that have been developed domestically include artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters (LCHs), radars, wheeled armoured platforms, rockets, bombs, armoured command post vehicles, and armoured dozers.
To enhance defence manufacturing, two Defence Industrial Corridors (DICs) have been established in Uttar Pradesh and Tamil Nadu, offering incentives to companies investing in the sector. Investments exceeding ₹8,658 crore have already been made across the six nodes in Uttar Pradesh—Agra, Aligarh, Chitrakoot, Jhansi, Kanpur, and Lucknow and the five nodes in Tamil Nadu—Chennai, Coimbatore, Hosur, Salem, and Tiruchirappalli. As of February 2025, 253 Memorandums of Understanding (MoUs) have been signed, promising a potential investment of ₹53,439 crore.
As part of the Make in India initiative, India has developed major defence platforms including the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), the Arjun Main Battle Tank (MBT), Light Combat Aircraft (LCA) Tejas, submarines, frigates, corvettes, and the recently commissioned INS Vikrant, showcasing the growing strength and capabilities of the nation’s defence sector.
The integration of Industry 4.0 technologies is transforming India’s defence manufacturing, enhancing precision engineering and boosting operational efficiency. Automation and robotics are reducing human error, while smart factories enable real-time monitoring and predictive maintenance. With support from policies like the Defence Production and Export Promotion Policy (DPEPP), India’s domestic defence industry is now capable of producing advanced weaponry, aerospace components, and military-grade electronics that meet global standards.
One of the most groundbreaking developments in defence manufacturing is additive manufacturing (3D printing), which significantly reduces lead times for producing critical components such as missile casings, UAV parts, and protective gear. This technology facilitates rapid prototyping and design adjustments, enabling India to respond quickly to evolving security threats and reducing dependence on traditional, lengthy manufacturing processes.
