India is ramping up its commitment to self-reliance in defence manufacturing, aligned with the Aatmanirbhar Bharat initiative. The government has set an ambitious goal for the Indian Army to source 85% of its defence equipment from domestic suppliers by 2032, marking a notable shift towards indigenous production.
In support of this initiative, the Defence Acquisition Council (DAC) has sanctioned nine procurement proposals valued at ₹45,000 crore. This approval highlights a focus on developing and acquiring indigenous weapon systems and platforms, which is anticipated to strengthen the domestic defence industry and reduce dependence on foreign suppliers.
The Union Budget for 2025-26 reflects this dedication, with a significant increase in defence expenditures. A total of ₹6.22 lakh crore has been allocated for defence, representing a 30% growth over the past three years. Additionally, the capital outlay has been raised to ₹1.8 lakh crore, prioritizing infrastructure development and the modernization of existing equipment.
To foster domestic manufacturing, the government has implemented several positive indigenisation lists. These lists restrict the import of specific defence items and instead promote their production within India. Such measures are designed to invigorate the domestic industry, particularly Micro, Small, and Medium Enterprises (MSMEs), to engage in defence production and contribute to the broader indigenization agenda.
The Ministry of Defence has identified 509 items earmarked for domestic production, effectively reducing imports and bolstering self-reliance within the defence sector. This strategic decision is expected to empower MSMEs, driving the nation towards realizing the vision of Aatmanirbhar Bharat.
Further exemplifying these efforts, the Ministry of Defence recently signed two contracts totaling approximately €770 million (₹6,900 crore) with Bharat Forge Limited and Tata Advanced Systems Limited. These contracts pertain to the acquisition of 155mm/52 calibre Advanced Towed Artillery Gun Systems (ATAGS) and High Mobility 6×6 Gun Towing Vehicles, underscoring a strong emphasis on indigenous procurement.
Collectively, these initiatives signify India’s determination to enhance its defence capabilities through self-reliance, foster innovation, and support local industries within the defence sector.
