India's defence industry has experienced remarkable growth, driven by the government's "Make in India" initiative and its push for self-reliance (Atmanirbharta) in defence production. The sector has seen significant achievements and investments in recent years.

Historic Growth And Production

Defence production in India reached a record high of ₹1.27 lakh crore in FY 2023-24, marking a 174% increase from ₹46,429 crore in 2014-15. This growth reflects the successful implementation of government policies aimed at boosting domestic defence manufacturing. The country is now producing sophisticated war platforms such as the Light Combat Aircraft Tejas, Advanced Towed Artillery Gun System (ATAGS), and Akash Missile System, reducing dependence on foreign suppliers.

Major Investments And Approvals

The government has actively supported defence companies through large orders and clearances:

Light Combat Helicopters (LCH) Prachand: Hindustan Aeronautics Limited (HAL) received contracts worth ₹62,700 crore for 156 helicopters, with over 65% indigenous content.

Advanced Towed Artillery Gun System (ATAGS): The Cabinet approved Rs 7,000 crore for 307 artillery guns developed by DRDO.

Flight Refuelling Aircraft: A wet lease deal for a KC-135 refuelling aircraft was signed to enhance Indian Air Force capabilities.

Record Defence Contracts And Budget Allocation

In FY 2024-25, the Ministry of Defence signed 193 contracts worth ₹2,09,050 crore, nearly doubling the previous record. Notably, 92% of these contracts, amounting to ₹1,68,922 crore, were with domestic companies. The government has also allocated 75% of the modernisation budget (₹1,11,544 crore) for indigenous procurement in the ongoing financial year.

Increasing Defence Budgets

The government's commitment to the defence sector is evident in the substantial increase in defence budgets. The allocation has risen from ₹2.53 lakh crore in 2013-14 to an estimated ₹6.81 lakh crore in 2025-26.

Ecosystem Development And Foreign Investment

To ensure sustained growth, the government has created an ecosystem that supports innovation and private sector participation. Key developments include:

The commissioning of the TATA Aircraft Complex in Vadodara in October 2024 to produce C-295 aircraft, enhancing self-reliance in defence manufacturing.

Easing of Foreign Direct Investment (FDI) regulations in September 2020, allowing up to 74% FDI through the automatic route and over 74% through the government route.

Total FDI in defence industries since April 2000 amounts to ₹5,516.16 crore.

How Public-Private Partnerships Enhances The Self-Reliance Of India's Defence Industry

Public-private partnerships (PPPs) has significantly enhanced the self-reliance of India's defence industry by leveraging the strengths of both sectors to address key challenges and achieve strategic goals. Here’s how PPPs contributed:

1. Technology Development And Innovation

Collaborative R&D: PPPs enable joint research and development between public entities like DRDO and private firms, fostering innovation in critical areas such as hypersonic weapons, quantum computing, electronic warfare, and AI-driven systems.

Access To Expertise: Private companies often adapt more quickly to evolving technologies, complementing public sector capabilities to develop advanced defence platforms.

2. Manufacturing Capacity

Indigenous Production: Partnerships allow private firms to manufacture complex systems such as tanks, submarines, and fighter jets under strategic models like the Defence Acquisition Procedure (DAP) 2020.

Boosting SMEs: PPPs promoted the inclusion of SMEs and start-ups in defence manufacturing, enhancing production capacity and creating a robust supply chain ecosystem.

3. Export Growth

Global Collaboration: Partnerships with foreign Original Equipment Manufacturers (OEMs) through PPP models expanded India's defence export potential, helping achieve targets like $5 billion in exports by 2025.

Quality Assurance: Private firms bring efficiency and cost-effectiveness, making Indian military products competitive in global markets.

4. Policy Support

Strategic Frameworks: Initiatives such as the Make-II framework and Positive Indigenisation Lists prioritize domestic procurement and encourage private participation in high-value contracts.

FDI Liberalisation: Simplified FDI policies under PPP models attracts foreign investments, facilitating technology transfer and strengthening indigenous capabilities.

5. Employment And Economic Impact

Job Creation: PPPs generates employment opportunities across sectors by integrating private players into large-scale manufacturing projects like aircraft production.

Economic Growth: Increased private sector involvement contributes to economic resilience through higher exports and reduced import dependency.

6. Long-Term Sustainability

By combining public resources with private efficiency, PPPs created a sustainable ecosystem for defence innovation and production, ensuring India’s strategic autonomy in the long term.

These partnerships are pivotal for transforming India’s defence industry into a globally competitive hub while achieving self-reliance and reducing dependence on imports.

These initiatives have significantly boosted India's defence industry, transforming the country from a major importer to an emerging defence production powerhouse.

IDN