Defense Business and Industry

Private Sector Boosts India's Defense Self-Reliance Initiative

India is undergoing a significant transformation in defense self-reliance, propelled by the Atmanirbhar Bharat initiative that has successfully engaged private sector players alongside traditional public-sector undertakings in defense manufacturing. In the fiscal year 2024-25, India’s defense exports reached a record Rs. 23,622 crore, marking a 34-fold increase since 2013-14 and a 12% rise over the previous year, illustrating India’s growing stature as a competitive global supplier. This export growth is supported by a robust increase in the number of export authorizations and defense exporters, showcasing enhanced integration of Indian products into global supply chains, with private sector exports contributing significantly alongside DPSUs. The accelerated production of the Tejas Light Combat Aircraft Mark 1A is a key milestone; HAL is set to have 12 jets operational by December 2025, with total orders reaching 180 aircraft for the Indian Air Force, underscoring a sustained production ramp-up fueled by private sector involvement. The operational deployment of indigenous systems during Operation Sindoor in May 2025 further validated this self-sufficiency, with homegrown equipment including the Akash missile system, anti-drone defense technology, and BrahMos missile playing crucial roles in countering multifaceted threats and demonstrating cost-effective, technologically advanced capabilities. Army Chief Gen Upendra Dwivedi emphasized the strategic necessity of blending advanced, affordable indigenous technologies to empower a smaller force against superior adversaries, advocating a whole-of-nation approach to future conflicts. This shift not only elevates India’s military capabilities but also reshapes defense economics, boosting strategic autonomy and resilience against global supply chain disruptions, positioning India on a path toward a self-reliant and resilient defense framework.

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