developed nation by 2047 and our defence industry

In an evolving global security landscape, India’s security and economic ambitions demand

nothing less 


India's defence sector 



is rapidly growing, shifting from importer to exporter, with record exports of ~₹23,622 crore in FY 2024-25,


driven by "Make in India," indigenous production boosting domestic output to ₹1.54 lakh crore, and a larger budget, 

targeting ₹50,000 crore exports by 2029, supported by private players, new policies, and global sales to over 85 countries. 


 India’s aspiration to become a developed nation by 2047 



not only on social and economic transformation but also on the strength of its strategic capabilities.  


in past - country’s defence manufacturing ecosystem


has remained constrained by restrictive policies, resulting in 

  • limited private participation 
  • excessive reliance on imports. 


Domestic private industries 

were not allowed in this sector but there were imports, without compunction, from private manufacturers from across the world. 



A shift after reforms

 

significant shift in recent years


 There has been an

  •  opening up to the private sector, 

  • liberalised foreign direct investment norms, 

  • corporatisation of the Ordnance Factory Board, 

  • progressive expansion of the list of arms and armaments to be procured under the ‘Make’ procedure 

  •  a pro-active promotion of -  innovation, which have all contributed to rapid progress. 

  • Defence production - has increased and exports have grown exponentially, now reaching more than 80 countries.

Defence Exports (UPSC Focus)


  • Stellar Growth: Exports surged from <₹1,000 crore (FY 2014) to ₹23,622 crore (FY 2024-25), a 34x increase, showing a ~28% CAGR over the decade.
  • Targets: Goal of ₹50,000 crore in exports by 2029.
  • Export Destinations: Over 85-100 countries, including the US, France, Armenia, Philippines, and nations in Africa, SE Asia, and Latin America.
  • Key Exports: BrahMos missiles, LCA Tejas, ALH Dhruv, Pinaka rockets, Akash SAM, naval vessels, artillery guns, drones, and radars.
  • Competitive Edge: Affordability, quality, and modularity compared to Western/Russian systems. 

WHY INDIA NEEDED REFORMS ? 


GLOBALLY 


The evolving global security landscape, marked by conflicts in Europe, West Asia and Asia, has exposed the fragility of international peace and the risks of supply-chain disruptions.


 For India, faces 


persistent challenges along its 

  • borders and in the maritime domain, 

  • self-reliance in defence is not only desirable but also indispensable.


shifting geopolitical dynamics 


Europe’s renewed emphasis on 

  • defence spending, 

  • the saturation of traditional suppliers, 

  • growing demand for cost-effective and reliable platforms create opportunities that India is well-positioned to capture. 


The country’s strategic geography 



in the Indian Ocean Region and its expanding diplomatic profile further strengthen its potential to emerge as a credible supplier of defence equipment.


Simplify procedures



Regulatory complexities 

continue to hinder private-sector participation, especially for micro, small and medium enterprises and startups. 


Export licensing, joint ventures and technology-transfer approvals need to be speeded up. 


India’s stated ambition of ₹50,000 crore in defence exports by 2029 will require simplifying procedures and ensuring policy continuity.


The role of the Defence Research and Development Organisation (DRDO) 


also needs to evolve. 


next phase demands a sharper division of responsibilities. 


Frontier research - 

must remain its core focus, while production, scaling and commercialisation should increasingly shift to industry, public and private. 


A dedicated, professionally staffed export facilitation agency 



would streamline outreach and provide a single-window interface for global partners. 


It will also help overcome the challenges arising from fragmented institutional arrangements across Ministries and the resultant coordination issues.


Key steps to take


overhaul financial, testing and certification frameworks


 Indian manufacturers often face challenges in 

  • securing competitive credit lines, 

  • meeting excessively stringent domestic standards 

  • and conducting trials within reasonable timelines.


HOW CAN WE DO ? 

Establishing 

  • specialised export financing instruments, 

  • expanding integrated testing facilities 

  • and adopting international certification protocols can dramatically improve competitiveness.


 

TO enhance India’s credibility in a market dominated by established players


  • A more proactive use of lines of credit, 

  • government-to-government agreements, 

  •  long-term service commitments 


WHY INDIA  NEED Defence exports 


They signify 

  • technological maturity, 

  • strategic reliability 

  •  emergence of a nation as a major actor in the international security architecture. 


 this is essential not only for 

  • reducing import dependency but, 

  •  generating high-skilled employment,

  • enhancing geopolitical leverage.

Key Initiatives & Policies importanat  for UPSC

  • "Make in India" & "Atmanirbhar Bharat": Core drivers for self-reliance.
  • Defence Procurement Procedure (DPP) Reforms: Streamlining processes, liberalizing FDI (up to 74% automatic).
  • Corporatisation of OFB: Creating 7 new Defence Companies for efficiency.
  • Innovation Schemes: iDEX (Innovations for Defence Excellence) supports startups and R&D. 

SOURCE THE HINDU 

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