By N. C. Bipindra

New Delhi: India’s defence self-reliance drive has crossed a critical inflection point, transforming from a long-stated policy goal into a measurable strategic reality, Union Minister Dr Mansukh Mandaviya said on December 18, 2025, pointing to record production, surging exports, and deep-rooted structural reforms in the sector.

Addressing a press conference in New Delhi, the Union Minister of Labour & Employment and Youth Affairs & Sports said India has sharply reduced its dependence on foreign defence suppliers and now manufactures nearly 65% of its defence equipment domestically.

A decade ago, he noted, imports accounted for nearly 65% to 70% of India’s military requirements, reflecting vulnerabilities caused by slow procurement systems, limited private participation, and negligible exports.

Mandaviya highlighted that defence production touched an all-time high of INR 154,000 crore in FY 2024–25, marking a historic milestone in India’s indigenous manufacturing journey.

Indigenous defence output has grown by 174% over the past decade, driven by sustained policy reforms in defence procurement, production, and exports.

He underlined the growing role of Indian industry, particularly MSMEs, with nearly 16,000 small and medium enterprises now embedded in the defence ecosystem. He said the government’s emphasis on reforming acquisition processes has been central to this transformation.

The Defence Procurement Manual (DPM) 2025 and the ongoing review of the Defence Acquisition Procedure (DAP) 2020 are aimed at ensuring speed, transparency, and innovation, while prioritising domestically designed and manufactured systems.

In July 2025, the Defence Acquisition Council approved proposals worth INR 105,000 crore for advanced platforms, including armoured vehicles and missile systems, largely under the “Buy Indian–IDDM” category.

On exports, Mandaviya noted that India’s global footprint has expanded dramatically, with defence exports rising nearly 34 times over the last decade to reach INR 23,622 crore in FY 2024–25.

Indian defence equipment is now exported to more than 100 countries, supported by streamlined online clearance systems that have reduced paperwork and processing timelines.

Reiterating the government’s long-term ambition, he said India is firmly on track to achieve INR 300,000 crore in defence production and ₹50,000 crore in exports by 2029.

Following Mandaviya’s remarks, Union Minister of State for Power and New & Renewable Energy Shripad Yesso Naik outlined the broader strategic vision underpinning India’s defence transformation.

He said Prime Minister Narendra Modi’s leadership has linked national security with economic strength and technological sovereignty, turning defence manufacturing into a national mission under the ‘Atmanirbhar Bharat’ (Self-Reliant India) and ‘Make in India, Make for the World’ frameworks.

Naik said India has decisively moved from being one of the world’s largest arms importers to a nation capable of designing, developing, manufacturing, and exporting advanced defence systems.

Reflecting this momentum, the Ministry of Defence has declared 2025 as the “Year of Reforms,” aimed at accelerating indigenisation while simultaneously strengthening the operational preparedness of the armed forces.

He highlighted that defence exports now span ammunition, weapons, sub-systems, and complete platforms supplied to around 80 countries, positioning India as a credible and reliable player in the global defence supply chain.

The private sector’s contribution has risen to nearly 23% of total defence production, while defence public sector undertakings continue to anchor large-scale manufacturing within a more performance-oriented framework.

Naik pointed to the operational impact of indigenisation, citing platforms such as Light Combat Aircraft ‘Tejas’, Light Combat Helicopter ‘Prachand’, ATAGS artillery systems, Akash missile systems, warships, armoured vehicles, and drones.

He said Operation Sindoor showcased the real-world effectiveness of indigenous capabilities in areas such as drone warfare, air defence, and electronic warfare.

He also detailed Mission Sudarshan Chakra, announced by the Prime Minister on Independence Day 2025, which envisages a nationwide security shield to counter hostile infiltrations and protect critical infrastructure by 2035.

Backed by defence industrial corridors in Uttar Pradesh and Tamil Nadu, simplified procurement rules, a defence budget of INR 681,000 crore for 2025–26, and a strong innovation push involving start-ups, MSMEs, and academia, Naik said India’s defence self-reliance is now irreversible.

NOTE: Follow Defence.Capital on Arattai.
NOTE: Follow Defence.Capital on Telegram.
NOTE: Follow Defence.Capital on WhatsApp.