India's defence industrial push has made notable progress in the past decade under initiatives like Make in India and several policy reforms. However, the private sector still awaits a full lift-off to become the dominant force envisioned back in 2014-15.

Make in India And Policy Reforms

Launched in 2014-15, Make in India aimed to shift India's heavy dependence on imports (over 60% in 2015) to domestic manufacturing, with private industry playing a key role. Strategic partnership models, Defence corridors, iDEX start-up funding, liberalised FDI rules, and positive indigenisation lists have laid a strong foundation. Government procurement now heavily favours domestic players, with record contracts in 2024-25 awarding 92% of contract value to Indian industry.

Private Sector Achievements

Private firms have delivered across key areas including artillery (L&T and Bharat Forge's ATAGS and K9 Vajra-T), shipbuilding (offshore patrol vessels and interceptor boats), drones (iDEX-backed start-ups like IdeaForge), and radars (TATA Power SED). Defence exports have surged to over ₹21,000 crore ($2.6 billion) in FY2023-24, with private industry driving more than 70% of exports. Investment in advanced facilities and innovation in AI, loitering munitions, and swarm drones creates a promising growth trajectory.

R&D Investment And Innovation

Sustained R&D investment remains critical to scale up next-gen technologies like jet engines, AESA radars, and advanced energetics. Leading private companies need to commit significant capital supported by government tax incentives, co-funding of high-risk projects, and innovation hubs connecting industry, academia, and start-ups. National missions on propulsion, sensors, and AI can embed key IP within India.

Supply Chain And Procurement Factors

While reforms have helped, the private sector still faces supply chain risks and challenges including imported component dependency. Streamlined procurement processes, accessible military certification and test facilities, defence-specific credit guarantees, and open architecture standards for subsystem integration are essential. Clear multi-year demand visibility aligned with technology roadmaps and lifecycle contracts will enable confident private investment.

Strategic Opportunities And 2030 Milestones:

Achieve 60% domestic value-add in new platforms
Defence exports to grow to $8–10 billion annually
Realise at least 10 indigenous platform families covering UAVs, air defence, artillery, radars, corvettes, trainers, electronic warfare pods, and satellites
Reach 80% self-reliance in energetics with surge capacity

The government aims to leverage ongoing reforms and a more rapid cadence of contracts to empower private industry in defence manufacturing and exports.

The private sector is poised for annual revenue growth of 16-18% supported by increasing government investment, technological progress, and expanding export markets.

In conclusion, India’s defence industrial push since 2015 is on a promising growth trajectory but requires five key shifts: clear bankable demand forecasts, lifecycle sustainment contracts, MoD-owned open architecture standards, national critical technology missions co-funded by government and industry, and export promotion with diplomatic backing. These will enable the private sector to fully lift off and transform India’s defence ecosystem into a resilient, innovation-driven powerhouse by 2030.

IDN (With Inputs From The Week)