Ten years ago, Prime Minister Narendra Modi introduced the Make in India initiative as a central part of his government’s strategy for economic growth and national security. This ambitious program aimed to promote self-reliance in various sectors, especially defence, to reduce India’s dependency on imports and strengthen its domestic manufacturing capabilities. A decade later, the results are visible, with significant strides in defence production and exports.
Reducing Defence Imports: A Major Shift
At the start of the Make in India journey, India relied heavily on foreign imports for defence equipment. About 65-70% of the country’s military hardware was imported. Today, this has dropped to just 35%, with the remaining 65% being manufactured within the country. This marks a massive transformation in how India approaches its defence needs, with local industries and innovations playing a critical role.
Not only has India reduced imports, but it has also entered the global defence export market in a big way. In the 2023-24 fiscal year alone, India’s defence exports crossed ₹21,000 crore, setting a record. The government, under Defence Minister Rajnath Singh, has set a further target to increase these exports to ₹50,000 crore by 2029.
Boosting Defence Production: A New Era for Domestic Industries
India’s defence production has seen rapid growth, crossing ₹1.27 lakh crore. The Defence Ministry is focused on pushing this number even higher, setting a target of ₹1.75 lakh crore for this financial year and aiming to double that to ₹3-3.5 lakh crore by 2029. This represents a massive opportunity for both public and private sector companies. Currently, about 60% of India’s defence exports come from private firms, showcasing the significant role of Indian businesses in strengthening the country’s military capabilities.
In addition to boosting production, the government has allocated 68% of the total defence procurement budget for domestic industries. This amounts to ₹84,598 crore, a major win for local manufacturers. Furthermore, 25% of the total budget has been set aside for private industry, micro and medium enterprises, and startups. This move is designed to encourage innovation and growth within these sectors, fostering a competitive and vibrant defence ecosystem.
Defence Industrial Corridors: Driving Regional Growth
To accelerate defence manufacturing, the government has also established two Defence Industrial Corridors—one in Uttar Pradesh and another in Tamil Nadu. These corridors are designed to attract investment and build a strong industrial base for defence production. The government has pledged full support to companies operating within these zones, providing financial and logistical assistance.
The development of these corridors is a significant step towards decentralizing defence production, ensuring that multiple regions across India contribute to this growing industry. By spreading the benefits of the Make in India initiative, the government hopes to create thousands of jobs and boost regional economies.
Fostering Innovation and Research in Defence Technology
Recognizing the importance of innovation in defence, the government has allocated 25% of the research and development budget for private companies, startups, and researchers. This investment is intended to drive technological advancements that will benefit the military. Initiatives like the Defense Innovation Startup Challenge have been launched to encourage participation from new entrepreneurs, ensuring that the armed forces have access to cutting-edge technology tailored to their needs.
A prime example of this focus on research and innovation is the development of UAVs (Unmanned Aerial Vehicles) like Rustam-2 and Nirbhay subsonic cruise missiles. These technologies are being designed specifically for the Indian military, enabling them to carry out precision strikes with ease. Other indigenous projects, such as the BrahMos supersonic missile and Astra air-to-air missile, demonstrate India’s growing capability to develop advanced weapons systems on its own.
India’s Growing Defence Exports: Reaching New Heights
India’s defence exports have seen a remarkable growth, jumping by 334% from ₹1,941 crore in 2014-15 to ₹8,434 crore in 2020-21. Today, Indian-made defence equipment is being exported to more than 100 countries. This dramatic increase underscores the success of the Make in India initiative, as well as India’s growing reputation as a global defence supplier.
The government’s decision to allow 100% foreign direct investment (FDI) in the defence sector has also been a game-changer. For companies partnering with local firms, FDI has been increased to 74%, making India an attractive destination for international defence manufacturers.
Building a Modern Defence Force: Key Achievements
The Indian government’s efforts are also reflected in the modernisation of the armed forces. Several major milestones have been achieved in the last decade, strengthening India’s defence capabilities:
- Aircraft and Missiles: India has successfully tested the BrahMos supersonic missile from the Sukhoi-30 fighter jet, along with medium-range surface-to-air missiles from various platforms. Indigenous missile systems like Pinaka and Astra have also been developed.
- Combat Aircraft: India has now developed two squadrons of the Tejas Light Combat Aircraft (LCA), boosting the country’s air capabilities. Additionally, two squadrons of Rafale jets purchased from France have been commissioned into the Indian Air Force.
- Helicopters: Advanced helicopters such as the Chinook and Apache have been integrated into the fleet, further strengthening the Army’s firepower. Additionally, India has commissioned 16 Advanced Light Helicopters (ALH), eight of which have already been delivered to the Indian Coast Guard.
- Tanks and Rifles: The government has placed an order for 118 Arjun Main Battle Tanks, with plans to purchase AK-203 rifles through a new production facility in Amethi. The successful testing of lightweight anti-tank guided missiles shows that India is developing cutting-edge weapons to meet its military needs.
- Warships and Submarines: The Indian Navy is also seeing major upgrades, with the commissioning of warships like INS Visakhapatnam and INS Surat. The first Indigenous Aircraft Carrier (IAC) has completed trials and will soon join the fleet, enhancing India’s naval strength. Additionally, the Navy has inducted Scorpene-class submarines like INS Kalvari, with more on the way.
Major Reforms for the Indian Military
One of the most significant reforms under PM Modi’s government was the creation of the Chief of Defense Staff (CDS) position, ensuring better coordination among the Army, Navy, and Air Force. The government has also streamlined the procurement process, giving the military the ability to purchase critical equipment in emergencies without lengthy approvals.
New defence companies have been created to boost production and profitability. Seven companies emerged from the restructuring of 41 ordnance factories, and six of them reported profits within six months of their establishment. These efforts demonstrate the government’s commitment to enhancing the efficiency of India’s defence sector.
