65% of India’s defence equipment is now manufactured domestically: MoD

About 65 per cent of India’s defence equipment is now manufactured domestically, a significant shift from the import dependency of 65–70 per cent, the Ministry of Defence (MoD) stated on Tuesday.

Defence production reached Rs 1.27 lakh crore in the 2023-24 financial year, marking a 174 per cent rise from Rs 46,429 crore in 2014-15.

The private sector accounts for 21 per cent of the total defence production. India is targeting defence production of Rs 3 lakh crore by 2029, leveraging the capabilities of a growing defence industrial base that includes 16 Defence Public Sector Undertakings, over 430 licensed companies, and approximately 16,000 MSMEs, according to information shared by the ministry.

Further, defence exports hit a record of Rs 21,083 crore in the 2023-24 fiscal, expanding 30 times in a decade, with exports to 100+ countries. India is aiming for exports worth Rs Rs 50,000 crore by 2029.

The focus on self-reliance and modernisation, according to the ministry, is reflected in the recent approval by the Cabinet Committee on Security (CCS) for the procurement of the Advanced Towed Artillery Gun System (ATAGS), a significant step in enhancing the Army’s firepower.

The deal includes 307 units of 155mm guns along with 327 high-mobility 6x6 gun towing vehicles, equipping 15 Artillery regiments under the ‘Buy Indian–Indigenously Designed, Developed, and Manufactured’ category, at an estimated cost of Rs 7,000 crore.

Developed by DRDO with Bharat Forge and Tata Advanced Systems, ATAGS is a cutting-edge artillery system with a 40-plus km range, advanced fire control, precision targeting, automated loading, and recoil management, thoroughly tested by the Indian Army in all terrains.

With modern warships, fighter jets, artillery systems, and cutting-edge weaponry being built within the country, India is now a key player in the global defense manufacturing landscape, the ministry claimed.

Strategic policies have fueled this momentum, encouraging private participation, technological innovation, and the development of advanced military platforms. This has enabled the development of advanced military platforms, including tanks, artillery guns, specialist vehicles, utility helicopters, missiles, radars, and maritime vessels.

The Ministry also pointed out that initiatives like iDEX and SAMARTHYA are driving technological advancements in artificial intelligence, cyber warfare, and indigenous weapon systems. Over 14,000 items have been indigenised under the SRIJAN scheme, and 3,000 under the positive indigenisation lists. Launched in April 2018, Innovations for Defence Excellence (iDEX) has created an ecosystem for innovation and technology development in defence and aerospace. By engaging MSMEs, startups, individual innovators, research and development institutes, and academia, iDEX has provided grants of up to Rs 1.5 crore for developing innovative technologies.

To further enhance self-reliance in defense technology, Rs 449.62 crore has been allocated to iDEX, including its sub-scheme Acing Development of Innovative Technologies with iDEX (ADITI), for 2025-26. As of February 2025, 549 problem statements have been opened, involving 619 startups and MSMEs, with 430 iDEX contracts being signed.