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India's push for self-reliance in defense becomes central focus of country's strategic, economic objectives
(MENAFN) India's push for self-reliance (Atmanirbharta) in defense is becoming a central focus of the country's strategic and economic objectives. With government policies emphasizing the importance of domestic production of modern weaponry, India is rapidly developing its defense manufacturing sector. The goal is for most weaponry to be "Made-in-India," with a particular emphasis on indigenizing key defense items.
The Indian military has compiled a Positive Indigenization List (PIL), identifying over 5,000 defense items that should be manufactured domestically rather than imported. Launched in 2020, the initiative encourages Indian manufacturers, including small and medium enterprises (SMEs) and startups, to produce these items. According to the Ministry of Defense, the initiative has already produced positive results.
The government is closely overseeing defense production and exports, setting ambitious targets, such as ensuring 75% of the defense capital budget is allocated to products made within India. The private sector, once excluded from defense production, is now being encouraged to participate. Several major industrial groups have entered the defense sector, alongside numerous SMEs and startups producing high-quality components and subsystems for global manufacturers.
India’s approach contrasts with its early post-independence period when the country was heavily influenced by Soviet socialism. In the 1950s, the Soviet Union provided significant assistance and technology transfers to India in sectors like steel, defense, and railways, including setting up military aircraft and avionics factories. At that time, India’s defense sector relied heavily on Soviet or Russian-origin equipment, with nearly 85% of military gear sourced from the Soviet Union.
In those early years, India’s private sector was relatively small and focused on basic needs. The government, using public funds, invested in essential infrastructure and nationalized key industries, such as banking and car manufacturing. Although this strategy served the country well in the past, both the public and private sectors faced challenges in the long term. Public sector enterprises often suffered from bureaucratic inefficiencies and low productivity, while the private sector, with more flexibility and higher efficiency, began to thrive after India’s 1991 economic reforms.
The Indian military has compiled a Positive Indigenization List (PIL), identifying over 5,000 defense items that should be manufactured domestically rather than imported. Launched in 2020, the initiative encourages Indian manufacturers, including small and medium enterprises (SMEs) and startups, to produce these items. According to the Ministry of Defense, the initiative has already produced positive results.
The government is closely overseeing defense production and exports, setting ambitious targets, such as ensuring 75% of the defense capital budget is allocated to products made within India. The private sector, once excluded from defense production, is now being encouraged to participate. Several major industrial groups have entered the defense sector, alongside numerous SMEs and startups producing high-quality components and subsystems for global manufacturers.
India’s approach contrasts with its early post-independence period when the country was heavily influenced by Soviet socialism. In the 1950s, the Soviet Union provided significant assistance and technology transfers to India in sectors like steel, defense, and railways, including setting up military aircraft and avionics factories. At that time, India’s defense sector relied heavily on Soviet or Russian-origin equipment, with nearly 85% of military gear sourced from the Soviet Union.
In those early years, India’s private sector was relatively small and focused on basic needs. The government, using public funds, invested in essential infrastructure and nationalized key industries, such as banking and car manufacturing. Although this strategy served the country well in the past, both the public and private sectors faced challenges in the long term. Public sector enterprises often suffered from bureaucratic inefficiencies and low productivity, while the private sector, with more flexibility and higher efficiency, began to thrive after India’s 1991 economic reforms.
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