Q. "Self-reliance in defence manufacturing is essential for India's strategic autonomy." Examine the progress made in indigenous defence...

Q. "Self-reliance in defence manufacturing is essential for India's strategic autonomy." Examine the progress made in indigenous defence production and the challenges that remain. (15 marks 250 Words)

Question

Q. "Self-reliance in defence manufacturing is essential for India's strategic autonomy." Examine the progress made in indigenous defence production and the challenges that remain. (15 marks 250 Words)

Model Answer

Q. "Self-reliance in defence manufacturing is essential for India's strategic autonomy." Examine the progress made in indigenous defence production and the challenges that remain. (15 marks 250 Words)

Paper

GS III

Subject

Science & Technology

Syllabus as Per Notification

Indigenization of Technology and developing New Technology

Topic

Self-reliance in Defence Production

Approach:

Introduction

Introduce by stating that India has significantly strengthened indigenous defence manufacturing under Aatmanirbhar Bharat in Defence.

Body

Progress made in Indigenous Defence Production

Record Growth in Defence Manufacturing, Emergence as a Defence Exporter, Increased Role of Private Sector, Major Policy Reforms and ecosystem Expansion and Indigenous Platforms and Technological Achievements.

Challenges that Remain

Dependence on Critical Technologies, Persistent Import Dependence, Slow Pace of Innovation and Limited R&D and Domestic Ecosystem and Supply Chain Gaps

Way Forward

Achieving Technological Sovereignty in Critical Domains, Building a Robust Indigenous Defence Industrial Ecosystem, Empower Private Sector and Enhance Export Competitiveness, Strengthening Defence Innovation.

Conclusion

Conclude by emphasising the need for Indian to transition from "Make in India" to "Design, Develop and Lead from India",

Context

India’s annual defence production has surged to an all-time high of Rs 1.78 lakh crore in the Financial Year (FY) 2025-26.

Introduction

In an era of supply-chain disruptions and sanctions regimes, self-reliance in defence manufacturing has become crucial for India's strategic autonomy. Recognising this, India has pursued Aatmanirbhar Bharat in Defence through various reforms such as DAP 2020, Positive Indigenisation Lists and Defence Corridors. Consequently, indigenous defence production has increased from ₹46,429 crore in 2014-15 to ₹1.78 lakh crore in 2025-26, marking significant transformation in India's defence industrial capabilities.

Body

Progress made in Indigenous Defence Production

Record Growth in Defence Manufacturing

India's annual defence production has reached an all-time high of ₹1.78 lakh crore in FY 2025-26, registering a 15.6% growth over FY 2024-25 and a 110% increase since FY 2020-21 and nearly four times the production value in FY 2013-14.

Emergence as a Defence Exporter

Defence exports touched a record ₹38,424 crore in FY 2025-26, recording an increase of over 62% over 2024-25, reflecting the increasing global acceptance of Indian defence products.

Indian defence products are now being exported to over 80 countries, comprising BrahMos missiles, artillery systems, radars, patrol vessels, ammunition and defence components.

Increased Role of Private Sector

The private sector contributed nearly 24% of total defence production, amounting to around ₹42,000 crore in FY 2025-26, the highest ever share.

More than 16,000 MSMEs and numerous start-ups have been integrated into the defence supply chain through initiatives such as iDEX and the Technology Development Fund (TDF) and DRDO's Development-cum-Production Partner (DcPP) model.

Major Policy Reforms and ecosystem Expansion

Defence Acquisition Procedure (DAP), 2020 prioritising "Buy Indian-IDDM (Indigenously Designed, Developed and Manufactured), while Positive Indigenisation Lists (PILs) and the Srijan Defence portal are systematically eliminating import dependence.

FDI liberalization (up to 74% automatic and 100% Government Route) and restructuring of the Ordnance Factory Board into seven new Defence Public Sector Undertakings (DPSUs) to improve efficiency and competitiveness.

Initiatives such as iDEX, Technology Development Fund and Defence Corridors in Uttar Pradesh and Tamil Nadu have encouraged innovation and strengthened the indigenous defence manufacturing ecosystem.

Indigenous Platforms and Technological Achievements

India has developed several indigenous platforms, including LCA Tejas, INS Vikrant, Arihant-class submarines, Pinaka rocket system and Akash air defence system.

Indigenous warships now incorporate over 75% indigenous content, while DRDO technologies are increasingly being transferred to private industry and MSMEs.

Challenges that Remain

Dependence on Critical Technologies

India still relies heavily on foreign Original Equipment Manufacturers (OEMs) for critical technologies.

This represents an "assembly-led" rather than "innovation-led" model of self-reliance assembly rather than ownership of core design and intellectual property.

Persistent Import Dependence

Despite significant progress, India remains the world's second-largest arms importer, accounting for 8.2% of global arms imports as per SIPRI, 2021–25 data.

Continued dependence on foreign procurement in key platforms exposes India to supply-chain disruptions, geopolitical uncertainties and constraints on strategic autonomy.

Slow Pace of Innovation and Limited R&D

Indian defence firms average only 7.3 patents per USD billion revenue, compared to the global average of 240 patents, reflecting weak innovation output and limited commercialization of research.

India's overall Gross Expenditure on R&D remains below 1% of GDP, significantly lower than major defence powers such as the USA, China and Israel, which invest over 3-5% of GDP in R&D.

Domestic Ecosystem and Supply Chain Gaps

The domestic ecosystem for advanced materials, microelectronics, semiconductor fabrication and precision manufacturing remains underdeveloped.

This exposes India's defence sector to technology-denial regimes and global supply-chain disruptions, limiting deeper indigenisation.

Way Forward

Achieving Technological Sovereignty in Critical Domains

Shifting from an assembly-led to a design-led model by prioritising indigenous IP ownership and establishing a Strategic Technology Fund for mission-mode development of critical technologies such as aero-engines, semiconductors and propulsion systems.

Building a Robust Indigenous Defence Industrial Ecosystem

Developing domestic capabilities in semiconductor fabrication, advanced materials, and Microelectronics with greater integration of MSMEs and start-ups into defence value chains.

Empower Private Sector and Enhance Export Competitiveness

Ensure a level playing field between DPSUs and private firms through transparent procurement, while expanding defence exports through defence diplomacy, export finance and Lines of Credit.

Strengthening Defence Innovation

Expanding iDEX and Defence Innovation Clusters, while strengthening industry-academia-DRDO collaboration in emerging domains such as AI, quantum technologies, autonomous systems, hypersonics and space-based capabilities.

Conclusion

To achieve Atmanirbharta in Defence, India must transition from "Make in India" to "Design, Develop and Lead from India", transforming defence self-reliance into genuine technological sovereignty and strategic autonomy. By prioritising indigenous R&D, critical technologies, and a vibrant innovation ecosystem, India can strengthen national security, reduce external vulnerabilities, and emerge as a leading global defence manufacturing and innovation hub under the vision of Viksit Bharat@2047.