India’s ambition to become a developed nation by 2047 is inseparable from the strength of its strategic capabilities. Among these, the defence industrial base has emerged as a critical pillar, shaping not only national security but also economic growth, technological depth and geopolitical influence.
Why defence manufacturing matters to India’s 2047 vision
For decades after Independence, India’s defence production ecosystem remained tightly controlled by the state. Private industry was largely excluded, even as imports from foreign private manufacturers expanded without restraint. This asymmetry created a structural vulnerability: domestic capacity stagnated, foreign dependence deepened, and opportunities for innovation and employment were lost. In an era of uncertain geopolitics, such dependence carried serious strategic risks.
The reform shift and the opening of the ecosystem
Over the past few years, a decisive shift has taken place. The sector has been opened to private participation, foreign direct investment norms have been liberalised, and the Ordnance Factory Board has been corporatised. The scope of procurement under the ‘Make’ procedure has expanded, and innovation has been actively encouraged through targeted policies.
These measures have begun to bear fruit. Defence production has risen steadily, and exports have grown rapidly, reaching over 80 countries. India is no longer seen only as a buyer but increasingly as a contributor to global defence supply chains, supplying platforms, components and services at competitive costs.
Geopolitical churn and emerging opportunities
The conflicts in Europe, West Asia and parts of Asia have underlined the fragility of global supply chains and the premium on domestic defence capacity. Countries with strong indigenous industries have demonstrated greater resilience. For India, facing persistent challenges on its land borders and in the maritime domain, self-reliance in defence is no longer optional.
At the same time, shifting geopolitical dynamics are opening new markets. Europe’s renewed focus on defence spending, the saturation of traditional suppliers, and demand for affordable yet reliable systems create space for Indian manufacturers. India’s strategic location in the Indian Ocean Region and its expanding diplomatic engagement further enhance its credibility as a defence partner.
Procedural bottlenecks that still hold back growth
Despite progress, regulatory and procedural complexities continue to constrain the sector. Private players—particularly MSMEs and startups—face delays in export licensing, joint venture approvals and technology-transfer clearances. The absence of long-term demand projections discourages large-scale investments.
Achieving the stated target of ₹50,000 crore in defence exports by 2029 will require simplified procedures, predictable policies and institutional continuity. Without these, recent gains risk plateauing.
Redefining the role of
The DRDO has played a foundational role in building India’s strategic capabilities. However, the next phase of growth demands a clearer division of labour. Frontier research and advanced technology development should remain its core mandate, while production, scaling and commercialisation increasingly shift to public and private industry.
Such a model reflects global best practices and allows research institutions to focus on innovation while industry drives efficiency and competitiveness. Complementing this, a professionally staffed defence export facilitation agency could offer a single-window interface for global partners and reduce coordination gaps across ministries.
Financial, testing and certification reforms
Indian defence manufacturers often struggle with access to competitive finance, stringent domestic testing standards and prolonged trial timelines. Addressing these constraints is essential for export competitiveness.
Key measures include:
- Specialised export financing instruments tailored to defence products.
- Expanded and integrated testing and certification facilities.
- Alignment with international certification protocols.
- Greater use of lines of credit, government-to-government agreements and long-term service commitments.
These steps would enhance credibility in a market dominated by established global players.
Why defence exports go beyond commerce
Defence exports are not merely commercial transactions. They signal technological maturity, strategic reliability and a country’s willingness to shoulder responsibility in the international security order. A strong defence industrial base reduces import dependence, creates high-skilled employment, and strengthens India’s geopolitical leverage.
What to note for Prelims?
- Corporatisation of Ordnance Factory Board and liberalised FDI in defence.
- ‘Make’ procedure in defence procurement.
- India’s defence export target of ₹50,000 crore by 2029.
- Role of DRDO in India’s defence ecosystem.
What to note for Mains?
- Link between defence industrial base, national security and economic growth.
- Impact of private sector participation on self-reliance in defence.
- Geopolitical opportunities for India as a defence exporter.
- Need for procedural, financial and institutional reforms.
- Balancing state-led research with industry-driven production.
Strengthening the defence industrial base is thus not just a strategic necessity but a defining step in India’s journey toward becoming a confident, capable and influential global power by 2047.
