BUILDING STRENGTH WITHIN: INDIA’S PATH TO DEFENCE SELF-RELIANCE

India’s defence and aerospace industry is undergoing a profound transformation, steadily emerging as a strong contender on the global stage. Moving beyond an era of import dependency, the sector today is defined by growing self-reliance and a widening international footprint. This evolving ecosystem provides the foundation for India to assert leadership in advanced technology domains.

On the 79th Independence Day, Hon’ble Prime Minister Shri Narendra Modi underscored the central role of Aatmanirbhar Bharat in shaping India’s future, citing achievements in defence, technology, energy, space, and manufacturing. Recent milestones – such as progress in indigenous semiconductor production and the launch of Mission Sudarshan Chakra – reflect a decisive shift toward strategic autonomy, innovation, and resilience in a complex global environment.

Aligned with this momentum, India’s defence budget has consistently expanded, rising from INR 2.5 lakh crore in 2013-14 to INR 26.8 lakh crore in 2025-26. This steady growth reflects the nation’s determination to strengthen military capabilities and secure a resilient, technologically driven, and self-reliant defence ecosystem. A defining feature of this transformation is the rising role of the private sector, which has infused agility, innovation, and competitiveness across the defence landscape.

The government is focused on building homegrown systems. It is adopting advanced technologies and creating dedicated defence corridors. This underscores its emphasis on long-term readiness, reduced import dependence, and a strong domestic industrial base. Over the past decade, the sector has transformed significantly. It has matured from a limited scale and vision into a confident, self-sufficient system—driven by political will, strategic planning, and proactive policies.

The Confederation of Indian Industry (CII) and the Society of Indian Defence Manufacturers (SIDM) have been instrumental in driving this change since the 1990s, shaping policies and supporting domestic industrial capacity development.

This journey is also reflected in India’s extraordinary growth in defence exports – from a modest INR 2,686 crore in 2013-14 to INR 2,23,622 crore in 2024-25, a 34-fold increase. This shows the government’s strong commitment to making India’s defence industry self-reliant and globally competitive. The government has now set an ambitious goal of crossing INR 2,50,000 crore in exports by 2029. This remarkable expansion highlights India’s shift from being primarily a buyer to becoming a builder and exporter of advanced defence systems.

As India’s defence and aerospace sector grows stronger, it actively engages with a diverse range of international partners. These collaborations – covering joint military exercises, co-development projects, technology partnerships, and information sharing – are increasingly central to India’s strategic outlook. In today’s complex geopolitical environment, particularly across the Indo-Pacific and in emerging domains like space and cybersecurity, these partnerships become more important than ever. Deepening cooperation in artificial intelligence, unmanned systems, space technologies, and cyber defence with trusted allies will further strengthen India’s capabilities and global influence.

Recent engagements through industry delegations to Germany, Italy, the UK, Sweden, and the UAE have underscored the role of defence cooperation as a pillar of India’s strategic partnerships. SIDM has played a key role in integrating India’s defence industry with global markets. This includes organising supply chain workshops with leading foreign OEMs and facilitating direct engagement between the Indian industry and foreign governments and armed forces. Over the past year, these efforts have expanded significantly, enabling broader collaboration across multiple countries.

India’s rising prominence in the global defence landscape is a testament to its journey of self-reliance and innovation. With sustained government focus, proactive industry participation, and expanding international partnerships, India is well-positioned to strengthen its global footprint in defence and strategic industries. This growth will not only strengthen national security but also establish India as a formidable force in the worldwide defence ecosystem.

Note: This article has been contributed by Chandrajit Banerjee, Director General, Confederation of Indian Industry. It was first published in Policy Watch, November 2025, Vol. 13, Issue 7.