India’s Defence Renaissance: Strengthening Self-Reliance and Strategic Power

Context

The Press Information Bureau (PIB) recently released a detailed report titled “The Defence Decade: Enhanced Capability, Greater Capacity, and Stronger Credibility”, highlighting India’s remarkable transformation in the defence sector between 2014 and 2026. The report showcases significant progress in indigenous defence manufacturing, military modernization, technological advancements, defence exports, and institutional reforms aimed at enhancing India’s strategic autonomy and national security.

India’s Defence Transformation (2014–2026)

Overview

Over the past decade, India has undertaken a major shift from being largely dependent on imported military equipment to becoming a rapidly growing defence manufacturing nation. Guided by the principles of Atmanirbhar Bharat and Make in India, the Ministry of Defence has implemented reforms to promote domestic production, encourage innovation, attract private investment, and strengthen defence preparedness.

Key Indicators of Defence Sector Expansion

Defence Budget and Capital Modernization

Increased Defence Spending

The overall defence budget increased from ₹2.53 lakh crore in FY 2013–14 to ₹7.85 lakh crore in FY 2026–27.
The rise reflects the government’s emphasis on military modernization and capability enhancement.

Higher Capital Procurement

Capital expenditure for acquiring military platforms and infrastructure rose from ₹94,587.95 crore in FY 2014–15 to ₹2.19 lakh crore in FY 2026–27.

Strengthened Research and Development

Defence Research and Development (R&D) allocations increased by over 112%, from ₹13,716.14 crore to ₹29,100.25 crore.

Expansion of Indigenous Defence Manufacturing

Growth in Domestic Production

Indigenous defence production increased from ₹46,429 crore in 2014–15 to ₹1.78 lakh crore in 2025–26.
This reflects substantial growth in domestic industrial capacity and self-reliance.

Rising Private Sector Participation

Defence Public Sector Undertakings (DPSUs) continue to be major contributors.
The private sector now accounts for approximately 24% of total defence manufacturing output.

Growth in Industrial Licenses

Defence industrial licences increased from 258 in 2015 to 834 by March 2026.
The increase reflects efforts to improve ease of doing business in the defence sector.

Corporatization of Ordnance Factories

In October 2021, the government dissolved the historic Ordnance Factory Board (OFB).
Its 41 factories were reorganized into seven Defence Public Sector Undertakings (DPSUs) to improve efficiency and competitiveness.

Increased Foreign Direct Investment (FDI)

Liberalized FDI policies permit:
- Up to 74% FDI through the automatic route
- Up to 100% through the government route
These reforms attracted ₹6,670.59 crore in defence-sector FDI by March 2026.

Rise of India as a Defence Exporter

Significant Export Growth

Defence exports increased from ₹686 crore in FY 2013–14 to ₹38,424 crore in FY 2025–26.
This represents one of the fastest-growing sectors in India’s manufacturing economy.

Expanded Global Reach

Indian defence equipment and systems are exported to more than 80 countries.

Increasing Exporting Firms

Around 145 Indian defence companies are actively engaged in international defence markets.

Reduced Import Dependence

India previously imported nearly 65–70% of its defence requirements.
Today, approximately 65% of defence equipment is produced domestically, significantly reducing external dependence.

Key Policy Reforms Supporting Self-Reliance

Innovations for Defence Excellence (iDEX)

Promoting Startup and MSME Participation

The iDEX initiative integrates startups and MSMEs into defence innovation.
By March 2026, it had facilitated 551 innovation and development contracts.

Positive Indigenisation Lists (PILs)

Encouraging Domestic Procurement

The Ministry of Defence introduced five Positive Indigenisation Lists.
These lists prohibit imports of 5,012 defence items and components.
The initiative generated domestic procurement opportunities worth ₹9,782 crore through the Srijan Portal.

Defence Industrial Corridors

Uttar Pradesh Defence Industrial Corridor

Investment commitments exceeded ₹42,057 crore.

Tamil Nadu Defence Industrial Corridor

Investment commitments reached ₹32,699 crore.

These corridors aim to create integrated defence manufacturing clusters and attract private investment.

Srijan DEEP Platform

Strengthening Defence Supply Chains

The Defence Establishments and Entrepreneurs Platform (Srijan DEEP) maintains a database of over 41,000 verified suppliers.
It enhances transparency, vendor identification, and supply-chain resilience.

Access to DRDO Facilities

Supporting Industry Collaboration

DRDO testing and evaluation facilities have been opened to private industries through a unified Defence Testing Portal.
This has improved technology validation and reduced barriers for private participation.

Major Technological and Strategic Achievements

Mission Shakti (2019)

India successfully demonstrated its Anti-Satellite (ASAT) capability.
A satellite in Low Earth Orbit (LEO) was intercepted and destroyed, placing India among a select group of nations possessing such capability.

Mission Divyastra (2024)

Successful testing of a missile equipped with Multiple Independently Targetable Re-entry Vehicles (MIRVs).
The technology enhances strategic deterrence capabilities.

Advances in Hypersonic Technology

Hypersonic Research Milestones (2026)

Successful 12-minute ground testing of a scramjet-powered combustor.
Establishment of a dedicated Hypersonic Wind Tunnel in Hyderabad.

Major Defence Procurement Approvals

Defence Acquisition Council (DAC)

Granted Acceptance of Necessity (AoN) approvals exceeding ₹6 lakh crore.

Important approvals include:

97 Tejas Mk-1A fighter aircraft worth approximately ₹62,000 crore
156 Prachand Light Combat Helicopters worth approximately ₹62,700 crore

Project 75 Achievement

Completion of Kalvari-Class Submarines

India completed delivery of all six Kalvari-class Scorpene submarines.
Built by Mazagon Dock Shipbuilders Limited (MDL) in collaboration with France.

Challenges Ahead

Technology Commercialization

Converting laboratory innovations into mass-produced defence systems remains a challenge.

Balancing Global Partnerships and Strategic Autonomy

Foreign collaborations must be managed carefully to ensure protection of critical technologies and intellectual property.

Skilled Workforce Requirements

Advanced defence manufacturing requires highly trained engineers, technicians, and specialized workers.

Implementation Bottlenecks

Delays in land acquisition, environmental clearances, and state-level approvals can affect project execution.

Future Roadmap

Expanding Defence Exports

The government aims to achieve ₹50,000 crore in annual defence exports by 2029.

Defence Acquisition Procedure (DAP) 2026

Proposed reforms seek to increase indigenous content requirements in defence procurement.
A minimum domestic content threshold of 60% is being emphasized.

Strengthening Emerging Technologies

Technology Development Fund (TDF)

A corpus of ₹500 crore has been earmarked to support:
- Artificial Intelligence (AI)
- Quantum Technologies
- Autonomous Systems
- Drone Swarm Technologies
- Advanced Electronics

Enhancing Strategic Partnerships

Strengthening maritime security and regional cooperation through initiatives such as:
- India–US TRUST framework
- MAHASAGAR doctrine
- Indo-Pacific security partnerships

Conclusion

India’s defence sector has witnessed a transformative decade marked by rising defence expenditure, rapid growth in indigenous manufacturing, expanding exports, technological breakthroughs, and major institutional reforms. Through initiatives such as Atmanirbhar Bharat, Make in India, iDEX, Positive Indigenisation Lists, and Defence Industrial Corridors, India is steadily moving toward becoming a globally competitive defence manufacturing and innovation hub while strengthening its strategic autonomy and national security.

Source : PIB