India makes significant strides towards self-reliance in defense production

(MENAFN) India is making significant strides towards self-reliance in defense production, with a focus on developing and manufacturing modern weaponry domestically. The government has introduced initiatives like the Positive Indigenization List (PIL), which identifies over 5,000 defense items to be manufactured in India instead of being imported. This initiative, which began in 2020, aims to empower Indian manufacturers, including small and medium enterprises (SMEs) and startups, to produce military equipment. So far, it has yielded positive results, with the government setting ambitious goals, such as spending 75% of the defense capital budget on domestically produced products.

The private sector, previously excluded from defense manufacturing, is now being encouraged to participate in the sector. Large industrial groups, as well as MSMEs and startups, are producing components and subsystems for global manufacturers, contributing to the growing domestic defense production capabilities.

Historically, India relied heavily on Soviet technology and assistance during the 1950s, particularly in defense sectors like military aircraft, avionics, and steel. During this period, the public sector dominated the defense industry. However, over time, both public and private sectors have developed their strengths and weaknesses. The public sector, while funded by the government, often faces bureaucratic hurdles and lower productivity compared to the private sector, which benefits from market forces.

Following the collapse of the Soviet Union and India’s economic reforms in 1991, the country began opening up its defense sector to private players. This, coupled with the growth of India's economy, has led to the expansion of manufacturing capabilities and a stronger defense sector.

MENAFN03042025000045015687ID1109385751