Make in India Powers Defence Growth: ₹1.27 Lakh Crore Production & ₹21,083 Crore Exports in FY24

India’s defence sector has witnessed a remarkable transformation, recording ₹1.27 lakh crore in production during FY 2023–24. This surge has been powered by the Make in India initiative, which has prioritised domestic manufacturing, innovation, and self-reliance. Once heavily dependent on foreign imports, India is now increasingly turning to homegrown technologies and capabilities to meet its strategic and security needs.

This paradigm shift not only strengthens national security but also bolsters economic development by creating a thriving ecosystem for manufacturing and job creation. The leap in the defence budget from ₹2.53 lakh crore in FY 2013–14 to a projected ₹6.81 lakh crore in FY 2025–26 further underlines this commitment.

Key Defence Acquisitions and Approvals

Recent acquisitions and policy decisions highlight India’s focus on strengthening its defence arsenal through indigenous procurement:

Light Combat Helicopters (LCH) – Prachand

The Ministry of Defence has signed two contracts with Hindustan Aeronautics Limited (HAL) for 156 LCH Prachand helicopters worth ₹62,700 crore. These high-altitude helicopters—designed for operations above 5,000 metres—will serve both the Indian Air Force and the Indian Army. Notably, the LCH has over 65% indigenous content and involves collaboration with 250 domestic firms, mostly MSMEs, creating over 8,500 jobs.

Wet Leasing of Refuelling Aircraft

In a first, the Indian Air Force has entered a wet lease agreement with Metrea Management for a KC-135 Flight Refuelling Aircraft. This will aid in training pilots from the IAF and Indian Navy in air-to-air refuelling operations, with delivery expected within six months.

Advanced Towed Artillery Gun System (ATAGS)

The Cabinet Committee on Security has approved the procurement of 307 ATAGS and 327 gun towing vehicles under the IDDM category at a cost of ₹7,000 crore. Developed by DRDO in partnership with Bharat Forge and Tata Advanced Systems, ATAGS offers advanced targeting, automated loading, and a firing range exceeding 40 km.

Record Defence Contracts in FY 2024–25

In FY 2024–25, the Ministry of Defence signed an unprecedented 193 contracts, amounting to ₹2,09,050 crore—nearly double the previous record. Impressively, 177 of these contracts (92%) were awarded to domestic firms, accounting for ₹1,68,922 crore or 81% of the total contract value. This reflects a strong push towards indigenous procurement and the growth of local industries.

Surge in Domestic Defence Manufacturing

The value of India’s indigenous defence production has grown by 174% over the past decade—from ₹46,429 crore in FY 2014–15 to ₹1,27,434 crore in FY 2023–24. This milestone is attributed to comprehensive government efforts promoting self-reliance and innovation.

Noteworthy platforms developed in India include:

• Land Systems: Dhanush Artillery Gun, ATAGS, Arjun Main Battle Tank, Light Specialist Vehicles

• Air Systems: LCA Tejas, ALH Dhruv, LUH, Akash Missile System

• Naval Platforms: Indigenous aircraft carriers, destroyers, submarines, and offshore patrol vessels

• Surveillance & Communication: Weapon Locating Radar, 3D Tactical Control Radar, Software Defined Radios

Structural Shifts in the Defence Ecosystem

India’s defence manufacturing ecosystem has evolved rapidly:

• 65% of defence equipment is now produced domestically, a reversal from earlier reliance on imports.

• A robust industrial base includes 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed firms, and approximately 16,000 MSMEs.

• The private sector contributes 21% of the total defence output, promoting competitiveness and innovation.

• India has set an ambitious ₹3 lakh crore defence production target by 2029, signalling its aspiration to become a leading global supplier.

India’s Defence Exports on the Rise

India’s push for defence exports has yielded impressive results. From ₹686 crore in FY 2013–14, exports have skyrocketed to ₹21,083 crore in FY 2023–24—a 30-fold increase over a decade. This demonstrates the growing confidence of international buyers in Indian-made defence systems and the country’s potential to be a significant player in the global arms market.

Conclusion

The Make in India initiative has successfully transformed India’s defence sector, enhancing self-sufficiency while opening up new avenues for global trade. With rising production figures, record-breaking contracts, and expanding exports, India is well on its way to becoming a defence manufacturing powerhouse.

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