India’s defence manufacturing strategy is increasingly moving beyond assembly-led production towards ownership of critical technologies and intellectual property, according to General Manoj Pande, former Chief of the Army Staff, who addressed the first stakeholders’ meeting of the ASSOCHAM Maharashtra Aerospace and Defence Council.

Highlighting the government’s evolving vision for the sector, he said, “The focus is clearly shifting from Make in India to Owned by India.” He stressed that merely receiving transfer of technology from foreign partners and assembling products domestically is no longer sufficient for achieving genuine strategic autonomy.

General Pande observed that India must now develop indigenous intellectual property, core technologies and critical subsystems to strengthen its long-term defence capabilities. Emphasising this transition, he stated, “People have realised that it is no longer enough to get a transfer of technology (ToT) from outside and simply assemble things here. You need to have your own IP in technologies and subsystems. I think that is where the government wants to move.”

The ASSOCHAM Maharashtra State Council’s Aerospace & Defence Committee Stakeholders Meeting brought together industry leaders, defence-sector representatives and policymakers to discuss emerging opportunities and the changing dynamics of India’s aerospace and defence ecosystem. Discussions focused on strengthening collaboration and establishing Maharashtra as a leading hub for defence manufacturing, innovation and advanced technology development.

Arun T Ramchandrani, Senior Vice President and Head of L&T Precision Engineering & Systems, as well as President of SIDM, highlighted the sector’s rapid expansion. He noted that domestic industry output reached approximately ₹1.8 lakh crore in the previous financial year, supported by sustained growth, stronger self-reliance initiatives and increased emphasis on indigenous product development. According to him, the sector is undergoing significant transformation driven by domestic innovation and capability building.

Milind Hardikar, Chairman of ASSOCHAM Maharashtra State Council, said the aerospace and defence industry today lies at the intersection of national security, strategic autonomy, advanced technology and industrial competitiveness. He emphasised that future success would increasingly depend on the ability to design, develop, manufacture and continuously upgrade sophisticated technologies and systems rather than relying solely on manufacturing capacity.

Addressing participants virtually, ASSOCHAM Secretary General Saurabh Sanyal said India’s next phase of growth should focus on indigenous design, technology development, manufacturing innovation and exports rather than simple import substitution. He noted that Maharashtra is particularly well positioned to support these ambitions because of its strong industrial base, engineering expertise, established aerospace and automotive ecosystem, extensive MSME network, research institutions and skilled workforce.

Sanjay Chakraborty, Chairman of Aerospace & Defence at ASSOCHAM Maharashtra State Council and Vice President and Head of Corporate Centre at L&T Precision Engineering and Systems, underlined the importance of collaboration across the ecosystem.

He remarked, “The strength of an ecosystem lies not merely in the capabilities of its individual constituents, but in how effectively they connect, collaborate and complement one another. Our aim is to build a defence and aerospace ecosystem in Maharashtra that is greater than the sum of its parts.”

Participants highlighted significant opportunities in indigenous manufacturing, domestic sourcing and technology development. Discussions pointed towards the need to move beyond traditional production and retrofit-focused activities and place greater emphasis on ownership of technology, innovation and intellectual property.

Several high-potential areas were identified, including specialised alloys, submarine systems and components, stealth and signature-management technologies, aerospace engineering, maintenance, repair and overhaul (MRO) services, advanced manufacturing techniques and dual-use technologies with both civilian and defence applications.

The meeting also examined structural challenges facing the industry. Participants called for stronger institutional engagement between industry, the armed forces and government agencies to better align operational requirements with technological development and improve procurement responsiveness.

Concerns were raised over high production costs, limited flexibility for design modifications, delayed payment cycles, working-capital pressures and difficulties in securing institutional finance. Industry representatives stressed that addressing these constraints would be essential for accelerating indigenous capability development.

The availability and retention of skilled manpower emerged as another major concern. Participants suggested structured skilling initiatives and deeper industry involvement in developing job-ready talent capable of supporting advanced aerospace and defence manufacturing requirements.

A proposal was also put forward to involve banking and financial institutions more actively within the council’s engagement framework to improve access to finance for companies operating in the sector.

One of the key recommendations was the establishment of a dedicated testing, validation and experimentation facility, or sandbox, in Maharashtra. Such a facility would allow companies and innovators to test new technologies in a controlled environment and accelerate their path to deployment.

The meeting further discussed moving from individual industry interactions towards coordinated collective action through dedicated working groups, member-led initiatives and clearly defined responsibilities. Participants proposed identifying priority focus areas, appointing initiative champions, engaging government departments and institutional partners, and creating a member-owned charter supported by measurable outcomes.

Under the proposed roadmap, priorities will be consolidated over the coming months, while charter and working-group structures are expected to be finalised by March 2027. Implementation activities are scheduled to begin from April 2027.

The session concluded with a vote of thanks from Perminder Jeet Kaur, Head of States and Union Territories at ASSOCHAM. She reaffirmed the organisation’s commitment to building a collaborative aerospace and defence ecosystem, strengthening engagement between industry and government, increasing interaction with the armed forces and advancing indigenous technology ownership. She also suggested examining lessons from IIT-Kanpur’s proposed technology sandbox for drones and aerospace as a possible model for establishing a similar facility in Maharashtra.

The discussions underscored a broader shift taking shape across India’s defence sector: moving beyond licensed production and import substitution towards indigenous research, original design ownership, export-oriented manufacturing and the creation of home-grown intellectual property that can support long-term strategic and technological self-reliance.

Agencies