India’s Make in India initiative is fundamentally reshaping its military arsenal by driving a decisive shift from heavy reliance on foreign arms imports to a robust domestic defence manufacturing ecosystem.

Historically the world’s largest arms importer, India sourced a vast majority of its military equipment—ranging from artillery to fighter jets—from other countries, which left it strategically vulnerable.

The landscape began to transform significantly in 2014 with the launch of Make in India, which prioritised defence manufacturing as a national agenda. This concerted push has yielded measurable results: Indigenous defence production hit ₹1.51 lakh crore in FY 2024–25, marking an 18% growth over the previous year.

The government is aiming for a production target of 3 lakh crore by 2029. Procurement priorities have shifted to emphasise domestic sourcing under the Defence Acquisition Procedure (DAP) 2020, with "Buy Indian (IDDM)" designated as the highest priority category. In FY 2024–25, the Ministry of Defence signed a record 177 contracts with domestic companies worth ₹1.68 lakh crore, leading to 65% of India’s defence equipment being domestically produced.

This progress is supported by a comprehensive policy framework designed to boost self-reliance and innovation. The Defence Production and Export Promotion Policy (DPEPP) 2020 serves as the blueprint, aiming for ₹3 lakh crore in domestic output and ₹50,000 crore in exports by 2029. Import bans on over 5,500 items, categorised under Positive Indigenisation Lists, secure guaranteed orders for domestic manufacturers.

The Innovations for Defence Excellence (iDEX) program, launched in 2018, fosters start-up and MSME involvement in defence research and development, exemplified by successful projects like drone-based surveillance carried out by Sagar Defence Engineering.

Defence industrial corridors in Uttar Pradesh and Tamil Nadu promote focused manufacture and supply chain development, while the corporatisation of the Ordnance Factory Board into seven defence public sector undertakings in 2021 aims at operational efficiency and competitiveness. Additionally, foreign direct investment reforms allow up to 74% automatic FDI and 100% with government approval, encouraging foreign collaboration and technology transfers.

A significant procurement shift under the Defence Acquisition Procedure (DAP) 2020 prioritises “Buy Indian (IDDM),” resulting in 65% of India’s defence equipment now being domestically produced. In the fiscal year 2024-25 alone, the Ministry of Defence signed a record 177 contracts with domestic industry worth ₹1.68 lakh crore.

This transformation is backed by an extensive policy framework designed to foster self-reliance and technological innovation. The Defence Production and Export Promotion Policy (DPEPP) 2020 serves as the master plan aimed at boosting output and exports, targeting ₹3 lakh crore in production and ₹50,000 crore in exports by 2029.

The government has introduced Positive Indigenisation Lists that ban imports of over 5,500 items, guaranteeing these procurements to domestic producers and thus spurring local manufacturing. Innovations for Defence Excellence (iDEX), launched in 2018, integrates start-ups and MSMEs into defence research and development, producing indigenous breakthroughs such as drone-based surveillance systems.

Additionally, the creation of defence industrial corridors in Uttar Pradesh and Tamil Nadu enhances infrastructure, investment attraction, and supply chain creation. The corporatisation of the Ordnance Factory Board into seven public sector undertakings aims to increase efficiency and global competitiveness.

Moreover, liberalised Foreign Direct Investment policies allow up to 74% automatic approval and 100% with government nod, encouraging foreign players to establish manufacturing bases in India, thereby enabling technology transfer.

The impact extends to exports as well, with India’s defence exports surging from a mere ₹686 crore in FY 2013-14 to a record ₹23,622 crore in FY 2024-25—an extraordinary 34-fold increase over a decade.

Private sector companies lead this export drive, accounting for about 60% of shipments to over 100 countries globally, including major arms consumers like the USA, France, and Armenia.

India’s export portfolio spans a diverse range of products, from bulletproof jackets and patrol boats to sophisticated systems like the BrahMos cruise missile, which has achieved high-profile export success, notably the deal with the Philippines.

Ongoing negotiations to export the indigenous TEJAS fighter and Akash missile system highlight India’s growing stature on the global defence stage.

Several flagship indigenous projects illustrate India’s growing capabilities. The TEJAS, a indigenous multi-role fighter jet supported by over 85 private firms, is nearing key milestones with the MK-1A variant, equipped with upgraded radar, avionics, and weapons systems, expected for delivery by late 2025.

Further advancements are underway with the TEJAS MK-2 and the fifth-generation Advanced Medium Combat Aircraft (AMCA), whose program execution model has been formally approved.

In naval capabilities, the INS Vikrant, India's first indigenously designed and constructed aircraft carrier, commissioned in 2022, marks a significant leap in shipbuilding. India’s missile programs have evolved into one of the world’s most diverse arsenals, from Agni and Prithvi ballistic missiles to the BrahMos and the Astra MK-1 air-to-air missile successfully test-fired from the TEJAS platform.

Despite remarkable progress, challenges remain. Critical components such as engines, sensors, and certain high-technology sub-systems still require imports. Large-scale projects often span decades, necessitating patience and sustained investment.

The government’s strategy to attract foreign defence companies to manufacture locally and encourage private-public partnerships aims to bridge these remaining gaps and accelerate capacity building.

Despite these advances, self-reliance is still evolving. Critical components such as engines, sensors, and advanced electronics remain partially dependent on imports. The timeline for major projects can span decades, and scaling production rapidly to fulfil both domestic and international demands remains a challenge.

The government’s strategy emphasises attracting foreign defence manufacturers to produce in India, alongside strengthening private–public partnerships to overcome these hurdles.

In conclusion, India’s Make in India defence initiative is not merely about manufacturing weapons; it is driving a larger strategic autonomy. By reducing dependence on foreign arms imports, enhancing domestic industrial capacity, fostering innovation, and becoming a credible global arms supplier, India is repositioning itself on the world stage as a key player influencing the global defence market.

The country’s military arsenal today is emblematic of this ambitious transformation towards a self-sufficient and technologically advanced defence ecosystem.

In essence, India’s Make in India defence push is not merely about manufacturing weapons—it is about building strategic autonomy. The country is reducing its dependencies on foreign suppliers, enhancing its bargaining power, and stepping beyond the role of a major buyer to become a credible arms supplier influencing the global defence market.

With clear policy direction, increasing industrial capacity, and ambitious targets, India is charting a transformative path toward self-reliance and global defence leadership.

Based On ET News Report