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Over the past decade, India has transformed from a defence importer to an exporter with a rising presence in the global arms industry
The TATA Aircraft Complex marks an emblematic moment in PM Modi’s visionary agenda for an Aatmanirbhar Bharat. (PTI)
In a defining moment for India’s defence sector, Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez jointly inaugurated the TATA Aircraft Complex at the TATA Advanced Systems Limited (TASL) Campus in Vadodara.
This new manufacturing facility, dedicated to producing the C-295 military transport aircraft, symbolises a historic leap forward in India’s self-reliance in defence. Out of a total of 56 C-295 aircraft designated for the Indian Air Force, 16 will be directly delivered by Airbus from Spain, while the remaining 40 will be manufactured locally under this joint collaboration.
The TATA Aircraft Complex marks an emblematic moment in PM Modi’s visionary agenda for an Aatmanirbhar Bharat — a self-reliant India that is not only prepared to meet its own defence needs but is also poised to become a global supplier of advanced military technology. This initiative underscores the government’s commitment to bolstering the defence sector by reducing foreign dependence, nurturing indigenous manufacturing, and establishing India as a prominent player on the world defence stage.
Aatmanirbhar Defence: India’s Rising Profile in Global Defence
Over the past decade, India has transformed from a defence importer to an exporter with a rising presence in the global arms industry. In 2019, the Stockholm International Peace Research Institute (SIPRI) ranked India among the top 25 arms exporters worldwide for the first time, placing the country at the 23rd position. India’s goals are set higher still, with the country targeting defence exports of Rs 35,000 crore by 2025.
Key Milestones of Aatmanirbhar Defence
Record-Breaking Defence Budget and Production: India’s defence budget has seen substantial growth, reflecting the nation’s investment in modernising its defence infrastructure. From Rs 2.03 lakh crore in 2013-14, the budget has grown to Rs 5.93 lakh crore in 2023-24, providing the necessary resources for advanced equipment, technology development, and robust defence manufacturing. This financial commitment has contributed to India achieving its highest-ever defence production output of Rs 1.27 lakh crore in 2023-24, a leap from Rs 40,000 crore in 2013-14.
Unprecedented Export Growth: India’s defence exports have surged from Rs 686 crore in 2013-14 to an impressive Rs 21,083 crore in 2023-24. The scope of India’s defence exports now extends across over 100 countries, highlighting the quality and reliability of Indian-made military products. From helmets and bulletproof jackets to sophisticated weapon systems like the BrahMos missile, Indian defence products are securing a reputation for excellence on the global stage.
Strategic Reduction in Import Dependency: India has made significant strides in reducing its dependence on foreign defence procurement. The percentage of defence spending on foreign procurement dropped from 46 per cent in 2018-19 to 36.7 per cent by December 2022, showcasing the country’s commitment to self-reliance.
Game-Changing Policy Initiatives: The Defence Acquisition Procedure (DAP) 2020 introduced a mandate for 50% indigenous content (IC) in procurement contracts. This policy includes a new “Buy (Global-Manufacture in India)” category, encouraging international defence manufacturers to set up production and maintenance facilities within India, facilitating local assembly and indigenisation of crucial components. Moreover, the Ministry of Defence (MoD) has released its fifth Positive Indigenisation List, featuring 346 items for exclusive procurement from Indian sources. To date, over 12,300 items have been indigenized, and the Srijan Indigenisation Portal, launched in August 2020, has become an important tool for identifying opportunities for local suppliers.
Infrastructure Investments & Strategic Partnerships Strengthening India’s Defence Sector
Defence Industrial Corridors: India has established two major defence industrial corridors in Tamil Nadu and Uttar Pradesh, attracting investments of Rs 7,000 crore to build an ecosystem that supports indigenous defence production. This infrastructure reinforces local capabilities and bolsters manufacturing in sectors such as aerospace, naval systems, and land warfare equipment.
Strategic Joint Ventures with International Partners: The C-295 manufacturing collaboration with Spain and TATA Advanced Systems exemplifies the type of high-impact partnerships driving India’s defence industry. Other landmark collaborations include TASL’s partnership with Lockheed Martin to produce C-130J Super Hercules airframes in Hyderabad, Russia’s RoE joint venture in Korwa for AK-203 rifle manufacturing, and Safran’s MRO (Maintenance, Repair, and Overhaul) facility. Saab’s Carl Gustaf M4 rocket systems production in India marks the country’s first fully foreign-owned defence production facility, setting a precedent for future international collaborations.
Indigenous Naval and Air Platforms: India’s naval capabilities have seen remarkable advancements, with the INS Vikrant aircraft carrier — a fully indigenous build — being the largest warship in India’s maritime history. Asia’s largest helicopter manufacturing facility, located in Tumakuru, strengthens the country’s commitment to advanced aviation technology.
Empowering Startups and MSMEs: The Backbone of India’s Defence Growth
Under PM Modi’s vision, small businesses and startups are gaining momentum in the defence ecosystem. In 2024, Rs 1,500 crore has been allocated to support startups and MSMEs from the defence procurement budget, signalling the government’s intent to nurture homegrown innovations. Today, approximately 8,000 MSMEs operate in the defence sector, with the goal to double this number in the coming years.
The Innovations for Defence Excellence (iDEX) initiative has emerged as a game-changer, with over 400 startups and MSMEs participating and providing innovative solutions. To date, 35 items worth Rs 2,000 crore have been indigenized under iDEX, showcasing the potential for young entrepreneurs to shape India’s defence future.
A Vision Realised: India’s Ascent as a Defence Powerhouse
With the inauguration of the TATA Aircraft Complex for C-295 aircraft production, India is not merely assembling planes; it is cementing its role as a defence powerhouse. From building Asia’s largest helicopter facility to nurturing local startups and manufacturing advanced naval platforms, India’s defence sector now embodies a self-sustained model of growth and capability. Exports to over 100 countries, significant defence joint ventures, and record-breaking indigenous production underline India’s steady ascent on the world stage.
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October 28, 2024, 13:44 IST
News india PM Modi’s Vision of Aatmanirbhar Bharat Takes Flight With TATA’s C-295 Aircraft Manufacturing Hub