India’s defence sector is witnessing unprecedented growth as the country advances towards achieving self-reliance in military equipment production. In FY24, India's defence production touched a record Rs. 1,27,000 crore (US$ 14.80 billion), marking a major leap forward under the Make in India initiative spearheaded by the Ministry of Defence. As of now, 65% of India’s defence equipment is manufactured domestically, a remarkable reduction in import dependency, which earlier stood at 65-70%. This growth underscores India’s commitment to self-sufficiency in defence manufacturing and its emergence as a key player in the global defence ecosystem.

Bihar-Made Boots Used by Russian Army: Symbol of Quality Excellence

A significant highlight of India’s growing influence in global defence manufacturing is the export of Bihar-made boots that are now part of the Russian Army’s gear. These boots, known for their durability and superior quality, have been recognised internationally, reflecting India’s high manufacturing standards. Bihar’s contribution to India’s defence exports adds to the diverse range of indigenously produced military equipment that has gained global acceptance.

India’s Expanding Defence Export Portfolio

India’s defence exports have seen impressive growth in recent years, with several indigenously manufactured military assets finding a place in global defence markets. Some of the notable defence exports include:

• Bulletproof Jackets: Widely used by security forces worldwide due to their high protection levels.

• Dornier (Do-228) Aircraft: A versatile multi-role light transport aircraft.

• Chetak Helicopters: Light utility helicopters used in various countries.

• Fast Interceptor Boats: Designed for high-speed patrolling and interception.

• Lightweight Torpedoes: Precision-guided underwater weapons used by naval forces.

India’s Vision: Rs. 3,00,000 Crore Defence Production by 2029

Building on this momentum, India aims to triple its defence production to Rs. 3,00,000 crore (US$ 34.88 billion) by 2029, positioning itself as a global defence manufacturing hub. The government’s strategy includes:

• Indigenisation of Military Equipment: Boosting local manufacturing of critical defence assets to reduce reliance on imports.

• Expansion of Defence MSMEs and Startups: Encouraging domestic small and medium enterprises (SMEs) and startups to develop niche technologies and contribute to the supply chain.

• Increased Private Sector Participation: Promoting private sector collaboration to foster competition and innovation in defence manufacturing.

Indigenously Developed Military Assets: Strengthening India’s Defence Capability

India has made remarkable progress in developing a range of indigenously produced military assets that not only bolster national security but also offer export potential. Key military assets include:

• Dhanush Artillery Gun System: A towed howitzer with enhanced accuracy and longer range.

• Advanced Towed Artillery Gun System (ATAGS): A next-generation towed artillery system with advanced firepower.

• Main Battle Tank Arjun: India’s pride, designed to meet the requirements of modern battlefields.

• Light Combat Aircraft (LCA) Tejas: A multi-role fighter aircraft developed for the Indian Air Force (IAF).

• Akash Missile System: A surface-to-air missile system designed to defend against aerial threats.

• Indigenous Aircraft Carriers: Boosting India's maritime power and securing its naval interests.

Boost in FDI to Drive Defence Sector Growth

India’s revised Foreign Direct Investment (FDI) policy for the defence sector, implemented in September 2020, has significantly improved investor confidence. The policy allows:

• Up to 74% FDI via the Automatic Route for new defence ventures.

• Beyond 74% FDI with Government Approval for cases where the proposed investment results in access to modern technology.

Since April 2000, total FDI in India’s defence industries has reached Rs. 5,516.16 crore (US$ 643.1 million), reflecting growing international interest in India’s defence manufacturing capabilities.

Surging Defence Budget Reflects India’s Commitment to Modernisation

India’s defence budget has witnessed a consistent upward trend, highlighting the government’s commitment to self-reliance and military modernisation. The budget has increased from Rs. 2,53,000 crore (US$ 29.43 billion) in FY14 to Rs. 6,81,000 crore (US$ 79.24 billion) in FY26. This substantial increase ensures that:

• Modernisation of Armed Forces: Upgrading equipment, infrastructure, and technologies.

• Capacity Expansion: Enhancing domestic manufacturing capabilities and increasing defence production.

• Strengthening Border Security: Ensuring better protection through advanced surveillance systems and border security technologies.

Opportunities and Challenges in Defence Manufacturing

While India’s progress in defence manufacturing is commendable, scaling up to meet the Rs. 3,00,000 crore target by 2029 presents several opportunities and challenges:

Opportunities:

• Global Defence Export Market: Leveraging India’s growing reputation to expand its export footprint.

• Innovation and R&D: Investing in research and development to stay ahead in defence technology.

• Public-Private Partnerships: Promoting collaboration between government defence agencies and private enterprises.

Challenges:

• Technology Transfer and Skill Development: Ensuring seamless transfer of technology and enhancing workforce skills.

• Supply Chain Efficiency: Strengthening supply chains to avoid bottlenecks in defence production.

• Geopolitical Factors: Navigating global geopolitical dynamics to maintain steady export flows.

Conclusion

India’s emergence as a global defence manufacturing powerhouse is a testament to its commitment to self-reliance, innovation, and excellence in the defence sector. The fact that Bihar-made boots are now used by the Russian Army reflects India’s growing reputation for quality in defence manufacturing. With ambitious targets of Rs. 3,00,000 crore in defence production by 2029, India is set to become a global hub for defence exports while strengthening its own defence infrastructure. As India continues to scale new heights in defence manufacturing, it remains poised to play a pivotal role in shaping the future of global security.

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