65% of Defence Gear Now Made in India; Russian Army Uses ‘Made in Bihar’ Boots
India’s defence production has reached a record Rs. 1,27,000 crore (US$ 14.80 billion) in FY24, reflecting significant progress under the Make in India initiative, as per the Ministry of Defence.
- Currently, 65% of India’s defence equipment is manufactured domestically, a major shift from the earlier 65-70% import dependency.
- This highlights India’s growing self-reliance in defence manufacturing, reducing reliance on foreign suppliers.
India’s defence exports now include bulletproof jackets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes.
- A notable achievement is the inclusion of boots manufactured in Bihar in the Russian Army’s gear, showcasing India’s rising global manufacturing standards.
India’s Defence Production Goals
India aims to achieve Rs. 3,00,000 crore (US$ 34.88 billion) in defence production by 2029, reinforcing its position as a global defence manufacturing hub.
- Key indigenously developed military assets include the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank Arjun, Light Combat Aircraft (LCA) Tejas, Akash Missile System, and Indigenous Aircraft Carriers.
- These developments strengthen India’s strategic capabilities and boost exports to international markets.
Foreign Investment and Defence Budget Growth
The defence sector’s FDI policy, revised in September 2020, now permits up to 74% FDI via the automatic route and beyond 74% through government approval.
- Since April 2000, total FDI in defence industries has reached Rs. 5,516.16 crore (US$ 643.1 million), attracting global investments in Indian defence manufacturing.
India’s defence budget has grown significantly, rising from Rs. 2,53,000 crore (US$ 29.43 billion) in FY14 to Rs. 6,81,000 crore (US$ 79.24 billion) in FY26.
- This increase underscores India’s commitment to self-reliance and military modernisation, ensuring a stronger defence infrastructure for the future.