India is intensifying its efforts to achieve self-reliance in defence manufacturing, aligning with the Aatmanirbhar Bharat initiative. The government has set an ambitious target for the Indian Army to procure 85% of its defence equipment from domestic sources by 2032, marking a significant shift towards indigenous production .
In support of this goal, the Defence Acquisition Council (DAC) has approved nine procurement proposals worth ₹45,000 crore, emphasizing the development and acquisition of indigenous weapon systems and platforms . This move is expected to bolster the domestic defence industry and reduce reliance on foreign suppliers.
The Union Budget for 2025-26 reflects this commitment, with a substantial increase in defence expenditure. The budget allocates ₹6.22 lakh crore to defence, marking a 30% growth over three years. Notably, the capital outlay has been increased to ₹1.8 lakh crore, focusing on infrastructure development and modernization of existing equipment .
To further promote domestic manufacturing, the government has introduced multiple positive indigenisation lists, restricting the import of certain defence items and encouraging their production within the country. These measures aim to provide a significant impetus to the domestic industry, including Micro, Small, and Medium Enterprises (MSMEs), to participate in defence production and contribute to the country’s indigenization efforts .
The Ministry of Defence has also identified 509 items for domestic production, effectively curbing their import and promoting self-reliance in the defence sector . This strategic move is expected to empower MSMEs and drive the nation towards achieving the vision of Aatmanirbhar Bharat.
In a significant development, the Indian Ministry of Defence signed two contracts worth approximately €770 million (₹6,900 crore) with Bharat Forge Limited and Tata Advanced Systems Limited. These agreements cover the procurement of 155mm/52 calibre Advanced Towed Artillery Gun Systems (ATAGS) and High Mobility 6×6 Gun Towing Vehicles, respectively, further emphasizing the focus on indigenous procurement .
These concerted efforts underscore India’s resolve to strengthen its defence capabilities through self-reliance, fostering innovation, and supporting domestic industries in the defence sector.
