In the backdrop of rising threats and regional conflicts, “Operation Sindoor” which took place in the wake of the Pahalgam terror attack prominently illustrated India’s expanding indigenous military technologies under the “Make in India” program. This landmark operation underlined a turning point in India’s defence capabilities. Indigenous equipment, including domestically designed drones, air defence systems, and missiles, took center stage during the operation, while imported tools—especially from countries like Turkey and China—failed to meet operational expectations. The success of homegrown technology over foreign gear marked a significant validation of India's self-reliance strategy.

Since the “Make in India” initiative launched on 25th September 2014, following Prime Minister Narendra Modi’s rise to power, India’s defence production landscape has evolved dramatically. A sector that once leaned heavily on foreign procurement has now achieved a historic ₹1.27 lakh crore in defence manufacturing for FY 2023-24—a leap that signals not only growth but transformation.

India’s journey from dependency to dominance reflects more than manufacturing prowess—it demonstrates a deliberate political and economic resolve to build a resilient, self-sufficient defence ecosystem. India, which was formerly reliant on foreign suppliers is now a major player in domestic industry and has developed its military capabilities indigenously. This evolution supports national security while creating a ripple effect that contributes to broader economic development.

Supporting this shift are policy decisions that promote innovation, increase private sector participation, and develop advanced military platforms. One of the clearest indicators of this shift is the increased defence budget. The country’s resolve to fortify its military infrastructure is evidenced by the boost in the defense budget which went from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26. That’s more than double in just over a decade—signifying long-term strategic planning.

In value terms, the FY 2023-24 has been record-breaking. During Financial Year (FY) 2023-24, India’s homegrown defense production soared at the highest rate ever in value terms. The output from Defence Public Sector Undertakings (DPSUs), other public entities, and private manufacturers hit ₹1,27,434 crore, showcasing a 174% surge from ₹46,429 crore in FY 2014-15. These numbers aren’t just statistics—they are a reflection of what effective leadership and sustained commitment can achieve.

The nation’s goal of Atmanirbharta, or self-reliance, is no longer just a slogan. It’s a measurable movement. India’s firm commitment to self-reliance and smart policy initiatives has led to its burgeoning global presence in defense industry. In just a decade, defence exports have skyrocketed from ₹686 crore in FY 2013–14 to ₹21,083 crore in FY 2023-24—a 30-fold increase.

This evolution is also visible in cutting-edge technological innovations. Products like the Quantum Key Distribution (QKD) system, 4G/LTE TAC-LAN, Advanced Autonomous Systems, and the Smart Compressed Breathing Apparatus are redefining India’s defence terrain. The country has already become one of the top exporters of various armaments, with the US as a customer, firmly positioning India as a key player in the global defence export market.

Innovations for Defence Excellence (iDEX)

Innovations for Defence Excellence (iDEX), which was established in April 2018, has produced an ideal setting for technological advancement and innovation in the aerospace and defense industries. It offers a supportive environment for fresh minds to fuel India’s strategic needs. By actively involving MSMEs, startups, academic institutions, R&D labs, and individual innovators, iDEX has ignited a new wave of participation in defence innovation.

Under the Defence Innovation Organisation (DIO), a substantial fund of ₹449.62 crore has been earmarked for iDEX and its sub-scheme ADITI (Acing Development of Innovative Technologies with iDEX) for FY 2025–2026. This financial backing strengthens India’s trajectory toward autonomy in military tech.

The program’s impact is already visible: 430 iDEX contracts have been signed as of February 2025 and 549 problem statements involving 619 startups and MSMEs have been opened. These aren't just bureaucratic figures—they represent ideas, solutions, and enterprises pushing India’s defence sector forward.

Furthermore, the government has made the entry into this space easier. It is offering large grants, facilitating procurement, facilitating co-creation and co-innovation through the use of efficient operating procedures and little paperwork as well as granting them easier and faster access to test facilities and infrastructure that are available with various government agencies. This reformist approach simplifies the traditionally complicated defence procurement process and encourages broader participation.

PLI Scheme for Drones and Drone Components

In 2021, the government launched the Production-Linked Incentive (PLI) Scheme specifically for drones and drone components, building on the Drone Rules, 2021 released on 25th August 2021. This policy is a significant leap toward creating a self-sustaining drone ecosystem in India.

Drones have now become more than just tech gadgets. Drones provide enormous advantages for practically every industry. Agriculture, mining, infrastructure, emergency response, surveillance, transportation, geospatial mapping, defense, and law enforcement are just a few of them. Their versatility makes them key tools for growth and job creation, especially in India’s rural and remote areas.

In military operations too, drones have played a key role. The domestically produced drones of India were vital to “Operation Sindoor,” integrating surveillance capabilities with deadly accuracy. Drones such as Nagastra-1 and SkyStriker stood out, particularly the latter, which was a product of Bengaluru’s Alpha Design and Israel’s Elbit Security Systems. Their performance confirmed India's ability to manufacture high-quality surveillance and strike drones at scale.

And there is more to come. India will develop next-generation loitering ammunition and swarm drones when, not if, it has combat success. This statement reveals confidence backed by a growing industrial and technical base.

According to the Ministry of Commerce and Industry, the PLI initiative, which aims to boost manufacturing in 14 key sectors, has attracted investments worth ₹1.61 lakh crore (approx. $18.72 billion) as of November 2024. It has already generated ₹14 lakh crore (approx. $162.84 billion) in sales, edging close to its ₹15.52 lakh crore target by 31st March 2025.

India has the potential to become a worldwide drone center by 2030 with its historical advantages in innovation, information technology and cost-effective engineering, coupled with significant domestic demand. This vision aligns perfectly with the direction India’s defence sector is heading—innovative, indigenous, and impactful.

MAKE Projects: Driving Indigenous Defence Innovation

The transformative wave in India’s defence industry began with the introduction of the MAKE procedure in the Defence Procurement Procedure (DPP-2006), aiming to push domestic design and development in the sector. Since then, the policy has evolved through key amendments in 2016, 2018, and 2020, ensuring that both public and private sectors can now produce defence equipment, systems, and components much faster than before. These reforms streamlined bureaucratic delays and brought clarity to project categorization.

To ensure clear direction and proper implementation, three separate categories were defined for MAKE projects.

MAKE-I (Government Funded): Prototype development can receive up to 70% government financing (up to ₹250 crore per Development Agency). Indigenous Content (IC) must be at least 50%. This category is highly supportive for innovators with groundbreaking concepts that require state financial backing. It motivates companies to design and develop core defence technologies indigenously, with adequate government assurance.

MAKE-II (Industry Funded): It encourages domestic firms to create vital defense systems by emphasizing import substitution. No government financing, but there must be at least 50% Indigenous Content (IC). This model rewards companies ready to invest their own capital to reduce India’s import dependency while also boosting the indigenous ecosystem.

MAKE-III (Manufactured in India through Transfer of Technology – ToT): It entails production in India through Technology Transfer (ToT) from foreign Original Equipment Manufacturers (OEMs). Design and development are not necessary, however at least 60% of the content must be indigenous (IC). Though it does not require domestic R&D, this model enables Indian firms to manufacture advanced equipment using foreign technologies, still ensuring high Indian content and encouraging local manufacturing growth.

These frameworks show how India is blending strategic independence with global collaboration to build a robust military-industrial base.

Advancing Self-Reliance

The Indian defence sector has undergone a major transformation from being import-dependent to becoming a self-reliant powerhouse, due to carefully crafted policies and a consistent push for local innovation. India is now far less reliant on foreign supplies owing to its efforts to become self-sufficient in the defense industry. As the country develops state-of-the-art military platforms, it not only strengthens national security but also fuels economic progress.

One of the major initiatives under this vision is Self-Reliant Initiatives through Joint Action (SRIJAN), launched in August 2020 by the Department of Defence Production (DDP). It’s an essential part of the Atmanirbhar Bharat mission and provides a unified platform for the Armed Forces (SHQs) and Defence Public Sector Undertakings (DPSUs) to showcase imported items that can be indigenised. More than 14,000 of the more than 38,000 items that are available as of February 2025 have been successfully indigenised, signifying the enormous success of this program.

Complementing this is the creation of Positive Indigenisation Lists (PILs), released jointly by the DDP and the Department of Military Affairs (DMA). These lists include LRUs (Line Replaceable Units), assemblies, sub-assemblies, components, sub-systems, spare parts, and high-end materials. Their goal is to ensure that beyond a specified cut-off date, India will not import these items. More than 3,000 of the more than 5,500 products on the list have been indigenized as of February 2025. Items like armor guns, assault rifles, corvettes, sonar systems, transport planes, light combat helicopters (LCHs), radars, wheeled armored platforms, rockets, explosives, armoured command post vehicles, and armoured dozers reflect India’s impressive defence capabilities.

Defence Industrial Corridors

To attract investments and boost defence production capacity, India has developed two Defence Industrial Corridors (DICs)—one in Tamil Nadu and the other in Uttar Pradesh. These corridors offer fiscal incentives to businesses investing in the defence sector and serve as hubs of military manufacturing excellence.

The Tamil Nadu corridor covers five nodes: Chennai, Coimbatore, Hosur, Salem, and Tiruchirappalli, while the Uttar Pradesh corridor covers six nodes: Agra, Aligarh, Chitrakoot, Jhansi, Kanpur, and Lucknow. As of February 2025, over ₹8,658 crore has already been invested in these regions. In total, 253 Memorandums of Understanding (MoUs) have been signed, with anticipated investments reaching ₹53,439 crore. These corridors aim to make India a global defence production hub.

Ease of Doing Business (EoDB)

To make the defence manufacturing sector more attractive, the government has introduced several business-friendly reforms. These steps are designed to cut red tape, promote entrepreneurship, and speed up licensing and export processes.

One key reform is the extension of the two-year export authorisation period for parts and components, which now lasts until the completion of the order or component. The Defence Product List was also simplified in 2019, reducing the number of items that needed a production license. In the same year, the government delicensed parts and components of defence equipment, a move designed to attract new investments.

Additionally, under the Industries (Development and Regulation) Act of 1951, the validity of defence licenses was extended from three to fifteen years, with the option of an additional three-year extension. This gives businesses more long-term security and confidence in planning.

As of now, 436 companies have received more than 700 industrial licenses in the defence sector. Also, in the most recent fiscal year alone, over 1,500 export approvals were granted through an end-to-end digital export authorisation system, making processes smoother and faster than ever before.

More Important Schemes

Over the past few years, the Indian government has introduced several groundbreaking initiatives aimed at strengthening the country’s defence manufacturing capabilities and achieving complete self-reliance. These schemes are not just policy measures—they reflect a national commitment to making India a leader in defence innovation, improving local production, inviting investments, and making the acquisition process smoother. These measures, which range from easing restrictions on foreign direct investment (FDI) to offering preference to domestic manufacturing, demonstrate a strong commitment to bolstering the nation’s defense industrial infrastructure.

Let’s look at the core government programs playing a pivotal role in this transformation.

The Liberalized FDI Policy, introduced in September 2020, was a bold move that allowed up to 74% foreign direct investment through the automatic route, and more than that via government approval. This policy aimed to attract international capital and expertise into India’s defence manufacturing sector. As of now, the total FDI inflow in the sector since April 2000 stands at ₹5,516.16 crore—a significant achievement given the sector’s earlier restrictions.

Another milestone came in October 2024, with the inauguration of the TATA Aircraft Complex in Vadodara. This facility is responsible for building C-295 transport aircraft under a programme that includes 40 out of 56 aircraft being made in India, a move that substantially enhances the Atmanirbharta (self-reliance) goal in aviation defence.

In the innovation space, the annual event Manthan, held during Aero India 2025 in Bengaluru, served as a dynamic platform for startups, MSMEs, academia, and industry leaders to come together. Leading innovators, startups, MSMEs, academia, investors and industry leaders from the defense and aerospace sectors came together at the annual defence innovation event, Manthan, reflecting the government’s serious commitment to promoting technological breakthroughs within the spirit of Aatmanirbhar Bharat.

To support indigenous testing infrastructure, the Defence Testing Infrastructure Scheme (DTIS) has already approved seven test facilities in areas like unmanned aerial systems, electro-optics, electronic warfare, and communication systems. DTIS intends to increase indigenization by offering financial support for the establishment of eight Greenfield testing and certification facilities in the aerospace and defense industry.

India has also taken clear steps to prioritize local procurement. As per the Defense Acquisition Procedure (DAP)–2020, priority is placed on acquiring capital goods from domestic suppliers. Reflecting this commitment, the Ministry of Defence allocated ₹1,11,544 crore, which is 75% of the modernization budget, for procurement through local firms in the current fiscal year. This not only empowers Indian companies but also ensures money spent stays within the domestic economy, creating jobs and boosting industry.

India Showcases Its Might

The Aero India 2025 event, named “SAMARTHYA”, was a grand stage where India proudly displayed the fruits of its indigenisation drive in the defence sector. The event presented 33 significant indigenous products, including nine successful iDEX innovation projects and 24 created by the Indian Navy, the Defence Research and Development Organization (DRDO) and Defence Public Sector Undertakings (DPSUs). These numbers are a clear reflection of the successful collaboration between government bodies and private enterprises.

Among the technologies exhibited were quantum-secure communications, AI-powered analytics, next-generation surveillance tools, and anti-drone systems. These innovations prove that India is not just catching up—but actually leading in key futuristic domains.

Importantly, India’s firm and bold decision to penalize Pakistan for harboring terrorism demonstrated how domestically made weapons can be decisive in real-world conflict situations. Joint ventures with Israel and Russia, combined with Indian-made weapons, presented a fearsome blend of strategic power and technological precision.

The ammunition production capacity played a pivotal role. As the operation unfolded, India’s ability to maintain uninterrupted supply lines was key. The Pinaka rocket launcher, capable of firing 72 rockets in just 44 seconds, showcased India’s indigenous firepower. This capability is critical not just for defence, but also for positioning India as a dependable player in the international arms market where timely availability is as vital as weapon sophistication.

India’s Akash SAM (Surface-to-Air Missile) was highlighted as a reliable intercept weapon, complementing the Russian S-400 system. India targeted many UAVs and loitering ammo, shot down fighter jets, destroyed a ballistic missile and halted unguided rockets in the same theater. This showed India’s multi-layered air defence strategy, capable of responding to a wide range of threats effectively and efficiently.

Conclusion

The progress in defence production and exports under Prime Minister Narendra Modi’s government has been nothing short of remarkable. Strategic programs like Make in India, coupled with focused initiatives and public-private partnerships, have redefined India’s role on the global defence map. The incredible developments in defense production and exports under the Modi government have enabled this transformation, positioning the country as a self-reliant and globally competitive military manufacturing powerhouse.

Today, India isn’t just trying to catch up with global defence giants—it’s actively setting new benchmarks. The surge in domestic production, skyrocketing exports, and robust policy support show how India’s dedication to attaining Atmanirbharta in defense is demonstrated by the explosive growth in exports, the manufacturing boom and the accomplishments of programs like Make in India.

With goals set high for 2029, India is on track to expand its global footprint, strengthen its economic resilience, and remain a trusted and powerful defence partner worldwide.

Finally, the real-time demonstration of strength during the conflict with Pakistan sent a clear signal to India’s adversaries. The capabilities demonstrated in the recent conflict with Pakistan will not only exemplify India’s strength to the world but also serve as a warning to its adversaries. This was not just a victory of arms but a testament to years of planning, innovation, and belief in the power of Indian industry.