India’s Defence Self-Reliance

India’s Defence Self-Reliance: Indigenization, Production And Exports

Source: PIB
GS III: Internal Security, Defence Technology, Indigenization of Technology, Science and Technology

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Why in the News?

The PIB highlighted India’s transformation into a more self-reliant defence power through increased domestic production, defence exports, indigenous research and development and military modernization.

News in Brief

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• India’s defence budget increased from ₹2.53 lakh crore in 2013–14 to ₹7.85 lakh crore in 2026–27, while domestic defence production reached a record ₹1.78 lakh crore in 2025–26.
• Defence exports rose from ₹686 crore in 2013–14 to ₹38,424 crore in 2025–26, with exports reaching more than 80 countries.
• The government has expanded indigenous procurement, defence corridors, technology transfer, and private-sector participation to strengthen the domestic defence industrial base.
• Indigenous missile systems, naval platforms, fighter aircraft and advanced defence technologies are enhancing India’s operational preparedness across land, air and maritime domains.

Growth in defence investment and production

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• India has increased investment in the defence sector to modernize its armed forces and strengthen domestic manufacturing capabilities.
  • Higher defence spending supports the acquisition of modern weapons, equipment and military platforms.
  • Greater capital investment enables the armed forces to upgrade existing systems and improve operational preparedness.
  • Domestic defence production is expanding, with both public-sector enterprises and private industries contributing to the manufacturing ecosystem.
• The growing focus on indigenous production is aimed at reducing import dependence and strengthening India’s defence industrial base.

Expansion of Defence Exports

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• India’s defence exports have expanded, reflecting improvements in domestic manufacturing capabilities and the growing international demand for Indian defence equipment.
• Indian defence products are reaching international markets, strengthening India’s position as a defence manufacturing and exporting country.
• Both private companies and Defence Public Sector Undertakings (DPSUs) contribute to defence exports.
• The government aims to increase defence production and exports by encouraging domestic manufacturing, innovation and international cooperation.
• Expanding defence exports can support economic growth, generate employment and strengthen India’s strategic partnerships with other countries.

Strengthening defence research and development

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• Indigenous research and technological innovation are essential for reducing dependence on foreign defence technologies and improving military capabilities.
• The government is encouraging greater participation of industries, start-ups and academic institutions in defence research and development.
• The Defence Testing Portal provides domestic manufacturers and innovators access to specialized testing facilities in DRDO laboratories.
• Collaboration between research institutions and private industries helps translate indigenous research into practical defence applications.
• These efforts aim to develop advanced technologies within the country and strengthen India’s ability to meet its future defence requirements.

Defence Acquisition Reforms

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• The government has introduced reforms in defence procurement to promote indigenous manufacturing, simplify acquisition procedures and reduce dependence on imported equipment.

Defence Acquisition Council (DAC)

• The Defence Acquisition Council is India’s apex defence procurement body.
• It promotes indigenous acquisition by supporting the procurement of systems designed by DRDO and manufactured by Indian industries.
• Major indigenous acquisitions include Tejas Mk-1A fighter aircraft and LCH Prachand helicopters, which support the development of India’s domestic aerospace and defence manufacturing capabilities.

Major Procurement Frameworks

• Defence Procurement Procedure (DPP), 2016- Streamlined defence acquisitions and promoted domestic manufacturing under the Make in India initiative.
• Defence Acquisition procedure (DAP), 2020– Strengthened indigenous procurement and expanded opportunities for Indian companies in defence design, development and production.
• Defence Procurement Manual (DPM), 2025- Simplified revenue procurement, facilitated faster approvals and provided greater support for indigenous projects through long-term orders.
• Draft Defence Acquisition Procedure (DAP), 2026- Proposes simpler acquisition categories and greater emphasis on indigenous design, development and domestic content.

These reforms seek to create a more predictable procurement environment and encourage greater participation of Indian industries in defence manufacturing.

Promoting Defence Innovation and Technology Development

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The government has introduced various initiatives to encourage start-ups, MSMEs and innovators to develop indigenous defence technologies.

Key Initiatives

•  Innovations for Defence Excellence (iDEX): Encourages start-ups, MSMEs and individual innovators to develop technological solutions for the armed forces. It promotes innovation and connects emerging enterprises with defence requirements.
• ADITI Scheme: Provides financial support for the development of innovative defence technologies through the Defence Innovation Organisation. It focuses on accelerating the development of advanced and strategically important technologies.
• Technology Development Fund (TDF): Supports the development of critical defence technologies by providing financial assistance to industries and innovators, particularly for emerging and deep technologies.

Technology transfer and Industry Participation

• DRDO promotes technology transfer and industrial collaboration to facilitate the commercialisation and production of indigenous defence technologies.
• Its Development cum Production Partner framework enables companies to participate in the development and manufacturing of defence systems.
• Access to technologies and intellectual property also encourages private-sector innovation and strengthens domestic manufacturing capabilities.
• These initiatives help bridge the gap between research, product development and the eventual induction of indigenous technologies into the armed forces.

Indigenization and Domestic Manufacturing

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India is strengthening its defence manufacturing ecosystem through domestic sourcing, industrial infrastructure and greater private-sector participation.

Positive Indigenization Lists

• The government has introduced Positive Indigenization Lists covering defence items to be manufactured domestically.
• These lists encourage Indian industries to develop indigenous alternatives to imported equipment and components, thereby reducing external dependence and strengthening domestic supply chains.

Srijan Defence Equipment Empowerment Platform (DEEP)

• Srijan DEEP is a digital platform that promotes indigenous defence sourcing by connecting domestic vendors with defence manufacturers and procurement opportunities.
• It supports the identification of Indian suppliers and encourages industries to develop and manufacture defence equipment within the country.

Defence Industrial Corridors

• The Uttar Pradesh and Tamil Nadu Defence Industrial Corridors aim to develop integrated defence manufacturing ecosystems by attracting investments, establishing industrial facilities and encouraging collaboration among manufacturers.
• The BrahMos Integration and Testing Facility in Lucknow has also begun missile manufacturing, contributing to the expansion of India’s indigenous missile production capabilities.
• Together, these initiatives support regional industrial development, strengthen domestic supply chains and create opportunities for defence-related industries.

Ease of Doing Business and Defence Trade

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• The government has introduced regulatory and administrative reforms to facilitate investment and improve the ease of doing business in the defence sector.
• Industrial licensing reforms have provided greater flexibility to defence manufacturers and supported long-term investment in production facilities.
• The revamped Defence Exim Portal simplifies defence trade through online application processing, company verification, registration and real-time tracking.
• Foreign Direct Investment (FDI)  reforms allow greater participation of foreign investor in India’s defence manufacturing sector, subject to the prescribed approval requirements.
• These measures seek to attract investment, improve the business environment and encourage technology transfer and domestic manufacturing.
• Overall, the reforms are intended to strengthen India’s defence industrial base and support the transition from indigenous research to large-scale manufacturing and deploymeny.

Advancing Operational Self-Reliance in FY 2025-26

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• India’s defence indigenization now covers ammunition, missiles, air defence, naval platforms and advanced propulsion technologies.

Land and Air Defence Capabilities

• The Indian Army achieved approximately 91% self-sufficiency by indigenizing 159 out of 175 ammunition variants in its inventory.
• India successfully tested the Agni-4 intermediate Range Ballistic Missile and Agni-5 Long RangeSurface-to-Surface Ballistic Missile, validating their operational and technical parameters.
• The TARA Glide Weapon and RudraM-II air-to-surface missile demonstrated indigenous precision-strike capabilities against ground targets.
• DRDO advanced indigenous systems, including the Kusha Long Range Air Defence Missile and Very Short-Range Air Defence System (VSHORADS).
• An integrated air-defence system combining missile interceptors, short-range weapons and laser technologies was successfully tested.
• DRDO conducted a 12-minute ground test of an actively cooled scramjet combustor, supporting the development of hypersonic missiles.

Maritime Defence and Naval Capabilities

• The Indian Navy has strengthened its maritime preparedness through indigenous warships, submarines, surveillance vessels and missile systems.
• The Indian Navy commissioned 12 warships and submarines, including INS Surat, INS Nilgiri and INS Vaghsheer.
• INS Mahendragiri, a stealth frigate with over 75% indigenous content, entered service.
• SHACHI, the first of 11 Next Generation Offshore Patrol Vessels, was launched.
• INS Dunagiri, INS Sanshodhak and INS Agray were commissioned, completing the indigenous Sandhayak-class survey fleet and expanding maritime surveillance and survey capabilities.
• DRDO successfully tested the Naval Anti-Ship Missile–Medium Range and demonstrated multi-layered Ballistic Missile Defence capabilities.
• These developments strengthen India’s ability to respond to maritime threats, improve surveillance across its maritime zones and protect its strategic interests.

 

 

Significance of Defence Self-Reliance

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• National Security- Reduces dependence on foreign suppliers during conflicts and geopolitical disruptions.
• Strategic autonomy- Enhances India’s ability to take independent decisions on defence and foreign policy.
• Economic growth- Promotes manufacturing, investment, employment and technological development.
• Technology development- Encourages indigenous research in aerospace, electronics, propulsion, artificial intelligence and advanced weapons.
• Export potential- Strengthens India’s position as a defence equipment supplier and supports international strategic partnerships.

Challenges in achieving defence self-reliance

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• Technological dependence- Critical technologies, specialised components and advanced manufacturing capabilities may continue to require foreign inputs.
• Research and development- Developing sophisticated defence systems requires sustained investment, specialised expertise and long development cycles.
• Private-sector participation- Greater collaboration between government institutions, start-ups and private manufacturers is needed to expand innovation and production capacity.
• Import dependence-Indigenous production must increasingly cover critical components and technologies, not merely final assembly.
• Procurement and testing- Defence projects require rigorous testing, timely approvals and coordination between research institutions, manufacturers and the armed forces.

Conclusion

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India’s defence transformation reflects a shift towards greater technological self-reliance, indigenous manufacturing and operational preparedness. Sustained investment in research, innovation and domestic production, along with stronger public-private collaboration, will be essential for reducing import dependence and building a technologically advanced defence ecosystem by 2047.

UPSC Prelims and Mains Practice Question

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With reference to India’s defence sector, consider the following statements:

1. The iDEX scheme promotes innovation and participation of start-ups and MSMEs in defence technology development.
2. The Defence Testing Portal provides domestic manufacturers access to specialised testing facilities across DRDO laboratories.
3. Foreign Direct Investment in the defence sector is permitted up to 100% under the automatic route.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (a) 1 and 2 only.

Mains Practice Question

Q) Discuss the role of defence indigenization in strengthening India’s strategic autonomy and national security. Examine the major initiatives undertaken to promote self-reliance in the defence sector and the challenges that remain. (250 words)

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