2025: A Defining Year for India's Defence Posture
The year 2025 has proven to be a watershed moment for India's defence sector, marked by a significant military operation, a strong push for indigenous production, and strategic geopolitical maneuvering. These developments collectively highlight India's growing assertiveness and its ambition to become a major player in the global security landscape.
One of the most significant events of the year was "Operation Sindoor," a military campaign launched in response to a terrorist attack in Pahalgam, Jammu and Kashmir, that killed 26 civilians. On May 7, 2025, India executed missile strikes targeting what it identified as terrorist infrastructure belonging to Pakistan-based militant groups like Jaish-e-Mohammed and Lashkar-e-Taiba. India asserted that the strikes were focused and non-escalatory, aimed at neutralizing terror threats while avoiding damage to civilian areas. Pakistan, however, claimed that the strikes resulted in civilian casualties and damage to civilian infrastructure, including mosques.
The operation triggered a brief but intense military conflict between the two nations, including border skirmishes and drone strikes. India claimed to have damaged Pakistani air defense systems and destroyed an army post along the Line of Control (LoC). Pakistan retaliated with "Operation Bunyan-um-Marsoos," targeting Indian military bases. The conflict also marked the first drone battle between the two nuclear-armed countries. After four days of military conflict, a ceasefire was agreed upon following negotiations involving US officials. Operation Sindoor is viewed by some as a demonstration of India's resolve to combat cross-border terrorism and a shift towards a more proactive defense posture. The operation inflicted a heavy economic cost on Pakistan, estimated at US$1.5 billion, compared to India's cost of US$407.75 million.
Bolstering its military capabilities, India has continued its strong emphasis on indigenous defence production. Fuelled by the "Atmanirbhar Bharat" (self-reliant India) initiative, domestic defence production has seen a remarkable surge. In FY 2023-24, production reached ₹1,27,434 crore, a 174% increase from ₹46,429 crore in 2014-15. The upward trajectory continued, with production soaring to ₹1,50,590 crore in FY 2024-25. The government aims to further expand annual defence manufacturing to ₹3 lakh crore and achieve exports of ₹50,000 crore by 2029.
This growth is attributed to increased government support, including a rising defence budget, which reached ₹6.81 lakh crore for 2025-26. Policy reforms such as the Defence Acquisition Procedure (DAP) 2020 and the Defence Procurement Manual (DPM) 2025 have also played a crucial role. The involvement of Micro, Small, and Medium Enterprises (MSMEs) has diversified the sector, with over 16,000 MSMEs contributing to indigenous production. As a result, approximately 65% of defence equipment is now manufactured domestically.
India's defence exports have also witnessed significant growth, reaching ₹23,622 crore in FY 2024-25, a 12.04% year-on-year increase. These exports reach over 100 nations, with the private sector contributing a significant share. The government is promoting research and development through schemes like the ₹1 lakh crore Research, Development and Innovation (RDI) Scheme. However, challenges remain, particularly in manufacturing complex components like aircraft engines, requiring further research and investment.
In terms of geopolitical positioning, India continues to navigate a complex global landscape, balancing its relationships with major powers and focusing on its strategic interests. India is likely to maintain its strategic autonomy by not aligning itself with any single global power, allowing it to engage with multiple countries and foster diverse partnerships. India's foreign policy priorities include managing ties with the United States, China, and Russia, as well as nurturing relationships with its South Asian neighbors. India is also actively involved in plurilateral organizations like BRICS, G7, and SCO. While maintaining a strong focus on its relationship with the United States, India is wary of being drawn into conflicts beyond its core interests.
In conclusion, 2025 has been a transformative year for India's defence sector, marked by a significant military operation, a strong push for indigenous production, and strategic geopolitical maneuvering. These developments reflect India's growing capabilities and its ambition to play a leading role in the global security arena.
