How Defence Sector Is Leading The Way Towards Aatmanirbhar Bharat

However, the defence industrial base lacked research and development capabilities and was mainly focused on assembly and maintenance. In the following decades, the country adopted a state-controlled, socialist model emphasising industrialisation for civilian purposes, prioritising social and economic upliftment.

Defence production remained centralised and under state control, but was not a primary focus. To foster research, the Defence Research and Development Organisation (DRDO) was established in 1958. 

Nonetheless, it remained underfunded and was overwhelmed by a wide range of projects. Additionally, DRDO operated with limited coordination with the armed forces, which often resulted in weapons that did not meet user needs

Following the 1962 war with China, India focused on modernising its armed forces by turning to imports, mainly from the Soviet Union. This created a pattern of import dependency that lasted for decades. As a result, India became one of the world’s largest arms importers.

Reducing Reliance On Imports

Over the past decade, focused efforts have been made to reduce India's reliance on imports. This shift has profoundly transformed India’s defence sector, changing it from a predominantly import-dependent framework to one that increasingly prioritises indigenous design, development, and manufacturing.

Structural reforms have also been implemented to foster synergy in the application of combat capabilities. This includes the creation of the office of the Chief of Defence Staff (CDS) in 2019–20 and the establishment of the Department of Military Affairs (DMA) under the CDS, which has enhanced the integration of the armed forces with the Ministry of Defence. 

The effects of these changes have been recently demonstrated in the joint planning and execution of Operation Sindoor by the Army, Navy, and Air Force.
In Operation Sindoor, the destruction of nine terrorist bases on the night of 6-7 May, two of which were deep inside Pakistan, demonstrated military precision, inter-service cooperation, and a national resolve to respond to acts of terrorism emanating from Pakistan. 

It was the high-impact air operations on targets such as the Nur Khan Air Base and the Rahimyar Khan Air Base that compelled the Pakistani military to seek a ceasefire, bringing an end to this brief 88-hour war. The success of Operation Sindoor reflects the reform process undertaken over the previous decade, which has enabled India's Armed Forces to perform in an exemplary manner.

Structural Changes 

At the structural level, aside from establishing the office of the CDS and the DMA, three agencies were formed in 2018–19. These are the Defence Cyber Agency, the Defence Space Agency, and the Armed Forces Special Operations Division (AFSOD). 

The Defence Cyber Agency is responsible for handling all matters related to military cyber operations, cyber defence, and cyber warfare. The Defence Space Agency (DSA) develops and coordinates the military use of space for surveillance, navigation, communication, and warfare. 

At the same time, the AFSOD provides India with a unified, rapid-response special operations capability for missions that are strategic, cross-border, or multi-domain, beyond the scope of individual service operations. 

All three are tri-service organisations that function under the Integrated Defence Staff (IDS) and report to the Chief of Defence Staff (CDS). All these agencies came into play in Operation Sindoor. Another reform in the making is the establishment of Theatre Commands.

Changed Procurement Procedure 

The Defence Acquisition Procedure (DAP) 2020 has replaced the earlier DAP 2016 to foster self-reliance by promoting indigenous design and manufacturing, accelerating defence acquisitions, and enhancing transparency. 

Towards this end, DRDO, DPSUs, and private R&D centres have been encouraged to collaborate, co-develop, and co-produce advanced systems. 
In DAP 2020, the indigenous content requirement has increased from 40 per cent to 50 per cent in several categories, and several items have been placed on the negative list for imports, which will bolster local manufacturing. 

Now, a foreign vendor must undertake the manufacture of the entire or part of the equipment, spares, assemblies, sub-assemblies, and maintenance, repair, and overhaul (MRO) facilities through its subsidiary or a partner in India. The indigenous content now must be at least 50 per cent. This enables the Indian armed forces to access advanced foreign technology.

Additionally, a significant portion of subsequent manufacturing and life-cycle support will now occur in India, leading to transfer of technology (ToT), import substitution for spares, and strengthening India's defence industrial base. 

This push towards Aatmanirbharta in defence production has accelerated domestic manufacturing of weapons, platforms, and systems. India’s defence production value has crossed Rs 1 lakh crore (2023–24) — the highest ever — with a growing share coming from the private sector.

New Policies And Reforms

A significant reform executed has been the Corporatisation of the Ordnance Factory Board (OFB). The erstwhile 41 ordnance factories were split into seven new DPSUs in 2021. The establishment of two defence corridors—one in UP and the other in Tamil Nadu is another significant reform. 

Another significant reform is the change in India's defence export policy—especially under the “Make in India – Defence” initiative. 

The liberalised defence export rules simplify licensing processes, making it easier for Indian companies to sell abroad. They also include dual-use technologies under controlled export, expanding opportunities for defence startups. 

As a result, India’s defence exports have increased nearly 15 times in the past decade — from approximately Rs 1,500 crore in 2016–17 to over Rs 21,000 crore in 2023–24. In 2024-25, India's defence exports reached a record high of Rs 23,622 crore. India now aims to raise defence exports to Rs 50,000 crore by the fiscal year 2028–29. 

Exports include radar systems, patrol vessels, avionics, artillery guns, missiles and missile components to friendly nations like Vietnam, the Philippines, and African states.

With this, India is positioning itself as a net exporter and reliable defence partner, particularly in the Global South. The revised policy bolsters India's role in the regional security architecture and serves as a tool for diplomatic influence.

Involving The Private Sector 

The private sector, which was largely excluded from the defence industry, has now been allowed to manufacture defence products. It now complements PSUs by focusing on high-tech platforms, aerospace, naval systems, armoured vehicles, drones, and defence electronics, while also fostering innovation, exports, and indigenous capabilities.

To reduce import dependence, India has released five “Positive Indigenisation Lists”, banning the import of over 500 major defence items (weapons, subsystems, ammunition, etc.) to encourage domestic sourcing.

Consequently, the import share of defence equipment has steadily declined, while the share of local procurement in capital acquisition has risen above 68 per cent.

The entry of private companies like L&T, Tata, Mahindra Defence, Bharat Forge, and Adani Defence into areas once monopolised by PSUs has introduced innovation, agility, and competition into the sector.

Additionally, there is a start-up collaboration where DRDO, through iDEX (Innovations for Defence Excellence), focuses on smart weapons, sensors, AI-driven systems, cybersecurity, and precision-guided munitions.

Since then, the iDEX programme has supported over 400 start-ups developing advanced technologies in AI, robotics, cyber defence, and unmanned systems.

Force Multipliers

The commissioning of INS Vikrant in 2022, India’s first indigenously built aircraft carrier, represents an important milestone in developing indigenous defence capabilities. This is further evidenced by the induction of frigates INS Udaygiri and INS Himgiri, under Project 17A, both advanced stealth warships with over 75 per cent indigenous content. 

Kalvari class submarines built at Mazagon Dockyard are enhancing undersea warfare capacity, while vessels are also being constructed with high indigenous content for coastal defence, logistics, and hydrographic operations.

For the Indian Air Force, a third production line has been set up in Nashik to increase the manufacturing of the Tejas LCA Mk-1A fighter aircraft. The LCA Mk 1 contains about 60% indigenous components, while the LCA Mk 1A will feature 70 per cent. Though challenges remain with the main engine, radar, ejection seat, and some avionics, which are being imported. 

India's fifth-generation stealth multirole fighter, the AMCA (Advanced Medium Combat Aircraft), is under development. India's first private Final Assembly Line (FAL) is being established in Karnataka through collaboration between TASL and Airbus for H125 helicopters, including a military variant (H125M). First deliveries are expected by 2027.
Achievements in advanced weapon systems include extended-range ballistic missiles (Agni-V & K-4), strengthening India’s nuclear deterrence. BrahMos missile upgrades feature increased ranges beyond 450 km and integration with Su-30 MKI aircraft and ships.

 Short-range, high-precision ballistic missiles (Pralay) have been inducted for conventional strike roles, while Akash NG and QRSAM systems, which will form the next-generation air defence systems, are under development by the DRDO. For artillery, the Advanced Towed Artillery Gun System (ATAGS), an indigenous 155 mm gun, has been successfully tested and cleared for induction.

Why Aatmanirbharta Is Necessary 

Aatmanirbharta in defence is not just a catchy slogan but a strategic necessity for India. Developing indigenous capability and reducing dependence on foreign suppliers enhances strategic autonomy and ensures faster replenishment, cost control, and supply chain resilience. 

While imports may be resorted to for critical defence needs, for India, the thrust must remain on import substitution and investment in R&D to address shortfalls in technology.
Challenges, however, remain in some technological regions, specifically in jet engines, sensors, and advanced electronics. In some sectors, India has a significant dependence on foreign raw materials and components. How this is addressed will determine the success of India's push towards an Aatmanirbhar Defence Sector.

The Aatmanirbhar Bharat initiative has been truly transformational. India's defence sector is moving from a buyer’s market into a builder’s ecosystem. With ongoing efforts to empower domestic industries, enhance exports, and strengthen national security, India is well poised to fight future wars, as demonstrated recently in Operation Sindoor.

(The writer is a retired officer of the Indian Army. Views are personal.)