1. From Import Reliance to Domestic Production
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For years, India imported up to 80% of its defence hardware. That dependence has flipped as domestic production surged to ₹1.27–₹1.3 lakh crore in FY 2023‑24, growing 17% year-on-year.
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With FY 2024‑25 tracking toward ₹1.6 lakh crore, defence manufacturing is firmly in expansion mode.
2. Export Capability on the Rise
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Exports doubling—from around ₹10,000 crore pre‑FY20 to over ₹21,000 crore in FY 2023‑24, and reaching ₹23,600 crore in FY 2024‑25.
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Products include small arms, artillery, protective equipment, and light combat aircraft components.
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The government aims for ₹30,000 crore in exports by FY 2025‑26.
3. Market Confidence: Stock Surge Post-Operation Sindoor
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Following operational strikes in May, defence-focused equities rose roughly 21%, dwarfing the broader market’s 3% gain.
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This reflects increasing investor trust in India’s defence sector.
4. Private Sector & MSME Transformation
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Private firms now represent about 24% of domestic defence production, up from 20% in FY 2017.
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MSMEs also play a bigger role—accounting for ₹13,000 crore in ministry procurements in FY 2024‑25, compared to just ₹3,000 crore between FY 2018–20.
5. Policy Engines: Make in India & Self-Reliance
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Defence Production Policy 2018 and flagship manufacturing programs have indigenized more than 14,000 items.
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Joint ventures, like Tata‑Dassault’s upcoming Rafale fuselage production in Hyderabad, demonstrate India’s growing domestic capacity.
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The government’s rapid procurements during crises underline the shift toward self-sufficiency.
6. What India Still Lacks: Advanced Platforms
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LCA Tejas: Despite years of effort, the indigenous fighter jet program continues to face delivery delays and performance limitations.
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Jet Engines: Indigenous projects like Kaveri fell short; India still relies on foreign technology from the U.S. and Europe.
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Naval Power: Submarines and naval aircraft are sourced from Russia and France, underlining dependency.
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Global Earrings: In strategic arsenals—stealth fighters, nuclear submarines—India lags far behind major powers.
7. Comparing Global Strengths
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U.S. and China lead in fifth-generation fighters, advanced missile systems, and global defence tie-ups.
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Russia, India’s historic partner, still excels in tanks, artillery and helicopters, but India lags in absorbable scale and modernization.
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France remains a specialist in high-tech fighters like Rafale and submarine technology—areas India is still dependent on.
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To catch up, India must speed up innovation, align supply chains, and boost manufacturing quality.
8. A Call to Action: What Must Change
To become a global defence power, India must:
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Fast-track and resource critical platforms: LCA Tejas Mk1A/Mk2, AMCA, nuclear submarines
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Enhance domestic engine and avionics capability via joint projects
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Support private firms and MSMEs in scaling quality and delivery performance
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Explore export financing and partnerships to expand market reach
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Benchmark with global powers and invest in disruptive technology