The "Make in India" initiative is significantly transforming India's military arsenal, driving self-reliance in defense production and reshaping the country's strategic capabilities. This push has resulted in increased domestic manufacturing, reduced dependence on imports, and a surge in defense exports.

Boost to Indigenous Production

The "Make in India" initiative has led to a substantial increase in local defense production. In the financial year 2023-24, 75% of the modernization budget was allocated for procurement from domestic sources, highlighting a shift towards self-reliance in defense manufacturing. India's annual defense production reached an all-time high of ₹1.46 trillion in FY25, marking an almost 15% jump from the previous record of ₹1.27 trillion in FY24. In 2024-25, defense production soared to ₹1,50,590 crore, an 18% increase over the previous fiscal year and a 90% surge since 2019-20.

Several major defense platforms, including the Tejas Light Combat Aircraft (LCA), Arjun Main Battle Tank, and INS Vikrant aircraft carrier, have been developed domestically. As of 2025, approximately 65% of defense equipment is made in India. The private sector's contribution to total defense production has also increased, accounting for 23% in the fiscal year 2024-25, up from 21% the previous year.

Policy Reforms and Investments

The "Make in India" initiative has brought about significant policy reforms and attracted substantial investments in the defense sector. The government has relaxed foreign direct investment (FDI) norms, allowing up to 74% FDI under the automatic route and 100% with government approval. This has encouraged international defense companies to establish joint ventures and manufacturing units in India, facilitating technology transfer and collaboration.

The Innovations for Defence Excellence (iDEX) scheme has been launched to engage startups and micro, small, and medium enterprises (MSMEs) in defense production. The ADITI scheme, an extension of iDEX, supports strategic technologies like AI, quantum tech, and autonomous systems, with grants up to ₹25 crore for innovators.

Growth in Defence Exports

Defense exports have seen unprecedented growth, surging from ₹686 crore in FY 2013-14 to ₹23,622 crore in FY 2024-25, marking a 34-fold increase over the past decade. India now exports defense equipment to over 100 countries, with key products including bulletproof jackets, Dornier aircraft, and lightweight torpedoes. The government aims to achieve ₹50,000 crore in defense exports by 2029. In the fiscal year 2024-25, the private sector contributed ₹15,233 crore to defense exports, while DPSUs contributed ₹8,389 crore.

Strategic Partnerships and Modernization

To modernize its military arsenal, India is forming strategic partnerships with countries like Russia. During Russian President Vladimir Putin's visit in September 2025, India and Russia are expected to finalize deals for the co-production of Su-57E stealth fighters at Hindustan Aeronautics Limited's (HAL) Nashik facility, along with the acquisition of R-37M air-to-air missiles, hypersonic missiles, the S-500 air defense system, and advanced anti-stealth radar systems.

The Indian Navy is also expanding its fleet of domestically built warships. On August 26, 2025, the Navy will commission two state-of-the-art stealth frigates, INS Udaygiri and INS Himgiri, marking the first time that two major surface combatants built by separate Indian shipyards will be inducted into service simultaneously.

Challenges and Future Outlook

Despite the significant strides made, India still faces challenges in its quest for self-reliance in defense. These include dependence on foreign components, slow integration with the private sector, and technological gaps. To address these challenges, India needs to increase investment in indigenous defense research and development, establish robust supply chains, and demonstrate consistency in its defense projects.

The "Make in India" initiative has catalysed a transformation in India's defense industry by promoting indigenous production, attracting foreign investment, and fostering innovation among local manufacturers. With continued policy support and strategic partnerships, India is well-positioned to become a global hub for defense manufacturing and exports, strengthening its national security and contributing to economic growth.