Aatmanirbharta drives sea change in India’s defence industrial ecosystem

New Delhi, Dec 8 Defence Minister Rajnath Singh, in his speech on Armed Forces Day, has reiterated the government’s commitment to make the nation Aatmanirbhar in defence manufacturing, highlighting the fact that India, which was once dependent on imports, is today witnessing a paradigm shift.

He underlined, in his address, that there was a time when the country lacked a solid system to manufacture arms and equipment and was an import-dependent country in the defence sector.

However, there has been a radical transformation in the last 10 years with the value of India’s defence production surging by as much as 174 per cenr from Rs 46,000 crore in 2014-15 to Rs 46,000 crore in 2014, has now grown to a record Rs 1.51 lakh crore in 2024-25. Exports, too, have surged — from a mere Rs 686 crore in 2013–14 to Rs 23,622 crore in 2024–25. India now exports systems to more than 90 countries.

A senior official said that Prime Minister Narendra Modi has repeatedly framed self-reliance in defence as central to India’s emergence as a secure, confident and developed nation by 2047. His emphasis on India “attaining Atmanirbharta in defence and emerging as a global manufacturing hub” reflects a strategic shift.

Highlighting successful operations such as Operation Sindoor, PM Modi has stressed that indigenous platforms, once validated in combat, strengthen deterrence, build national confidence and establish India as a dependable supplier.

The government’s policy of opening up the defence sector to private companies has helped to expand the industrial base and giving preference to India-made military hardware has played a key role in this rapid expansion of the defence industrial ecosystem.

Defence Minister has also highlighted the strong economic growth that has placed more resources in the hands of the government. The Budget outlay for defence has enhanced nearly three-fold from Rs 2.53 lakh crore in 2013–14 to Rs 6.81 lakh crore in 2025–26.

As much as 75 per cent of the capital procurement in the defence budget has been reserved for domestic industry in in recent years. This predictable demand has encouraged both public and private sector companies to invest in new capacities, technologies and partnerships and catalysed the transformation of the defence industrial ecosystem.

Officials also point out that before 2014, India’s procurement framework was stuck in red-tape and the defence forces were denied crucial equipment due to this “policy paralysis.”

“There has now been a sea change between then and now over in the pace of the procurement of weapon systems, with provisions for emergency procurement enabling the timely equipment of the armed forces. This was evident in the Ladakh border stand-off with China and the subsequent procurement of state-of-the-art equipment such as drones,” a senior official added.

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