🇮🇳 India’s Defence Sector: From Imports to Self-Reliance

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India’s defence sector is undergoing a strategic transformation—balancing its status as the world’s top arms importer with a fast-growing export footprint and robust domestic production. Here's the latest snapshot:

🔻 1. Imports: One of the World’s Largest Arms Buyer
  • India remains the largest global arms importer (2019–23), accounting for 9.8% of total global imports.
  • Despite a 33% drop in imports from 2011–15 to 2016–20, dependency remains high.
  • Russia leads as India’s top supplier (36%), followed by France (33%) and Israel (13%).
  • India is negotiating further deliveries of the S-400 Triumf missile system from Russia to bolster air defence.


🚀 2. Exports: A Strategic Leap Forward

  • Defence exports rose from ₹686 crore in FY 2013–14 to ₹23,622 crore (~$2.76 billion) in FY 2024–25—a 34-fold increase.
  • FY 2023–24 alone saw exports of ₹21,083 crore, up 25% YoY.
  • Q1 FY 2024–25 exports surged 78% to ₹6,915 crore.
  • India now exports to 100+ countries, including the U.S., France, Armenia, and others.
  • Exported items include Dornier-228 aircraft, BrahMos missiles, Akash SAM systems, Pinaka rockets, radars, and armoured vehicles.


🏭 3. Domestic Production & Policy Push

  • FY 2023–24 defence production hit ₹1.27 lakh crore (~$15B), up 16.7% YoY and 60% from FY 2019–20.
  • 75% of capital procurement in the 2024–25 Budget is earmarked for Indian manufacturers.
  • Defence Industrial Corridors in UP and Tamil Nadu have attracted ₹8,658 crore in investments, with 253 MoUs promising ₹53,439 crore.
  • Policies like DAP 2020, Positive Indigenisation Lists, and iDEX are driving MSME and private-sector participation.

✨ 4. Sector Highlights & Strategic Initiatives

  • The Ordnance Factory Board’s successor firms recorded ₹3,545 crore in exports.
  • At Aero India 2025, India announced ₹1.25 trillion in domestic production and ₹21,000 crore in expected exports.
  • A ₹30,000 crore UAV procurement deal was approved, with local production boosting export potential.
  • The Akash missile system is now exported to Armenia, with deals underway with the Philippines and UAE.


📊 Summary Snapshot

CategoryKey Insight
ImportsStill top global importer; Russia, France, Israel dominate supply chain
Exports₹23,622 crore in FY25; exports to 100+ nations
Production & Policy₹1.27 lakh crore output; strong push via DAP, IDDM, MSME, and R&D schemes
Growth DriversDefence corridors, UAV deals, missile exports, private-sector rise
Future Goals₹50,000 crore export target by 2029; 70% self-reliance in arms by 2027


India’s defence sector is now backed by:

  • Revised Defence Acquisition Procedure (DAP 2020)
  • Defence Production and Export Promotion Policy 2020
  • Green Channel Status (GCS) for private firms
  • Active participation from top Indian companies like BEL, HAL, BDL, Paras Defence, Data Patterns, IdeaForge, MDL, CSL

Sachin Jangir
Recommended for IMA 160 & NDA 152 (AIR 128)

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