Indian Aerospace and Defence Sector Growth Updates

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Indian Aerospace and Defence Sector Growth Updates

Make in India - Indian Aerospace and Defence Sector Growth updates. India's Defence production reached ₹1.27 lakh crore in FY 2023-24, marking a 174% rise since 2014-15, driven by the Make in India initiative. Defence exports hit a record ₹23,622 crore in FY 2024-25, expanding 34 times since 2013-14. The Ministry of Defence signed a record 193 contracts worth over ₹2,09,050 crore in 2024-25, with 177 contracts (92 percent) awarded to the domestic industry. 14,000+ items indigenized under SRIJAN and 3,000 under Positive Indigenization Lists. India aims for ₹3 lakh crore in production, ₹50,000 crore in exports by 2029.

India’s defence production has grown at an extraordinary pace since the launch of the "Make in India" initiative, reaching a record ₹1.27 lakh crore in FY 2023-24, with defence exports rising to an all-time high of ₹23,622 crore in FY 2024-25. Once dependent on foreign suppliers, the country now stands as a rising force in indigenous manufacturing, shaping its military strength through home-grown capabilities. This shift reflects a strong commitment to self-reliance, ensuring that India not only meets its security needs but also builds a robust defence industry that contributes to economic growth.

Indian Aerospace and Defence Sector Growth

Strategic policies have fueled this momentum, encouraging private participation, technological innovation, and the development of advanced military platforms. The surge in the defence budget, from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26, underlines the nation’s determination to strengthen its military infrastructure. With modern warships, fighter jets, artillery systems, and cutting-edge weaponry being built within the country, India is now a key player in the global defence manufacturing landscape. The success of "Make in India" has not only reinforced national security but also positioned India as a dependable exporter of defence equipment. This growing capability reflects India’s vision of achieving self-reliance while shaping the future of advanced military technology.

Unprecedented Growth in Defence Exports

India's expanding global footprint in defence manufacturing is a direct result of its commitment to self-reliance and strategic policy interventions. Defence exports have surged from ₹686 crore in FY 2013-14 to an all-time high of ₹23,622 crore in FY 2024-25, marking a 34 times increase over the past decade.

Key Points:

In 2024-25, defence exports reached ₹15,233 crore from the private sector and ₹8,389 crore from DPSUs, up from ₹15,209 crore and ₹5,874 crore in 2023-24.
DPSU exports grew by 42.85% in 2024-25, showcasing the increasing global acceptance of Indian defence products and industry integration into the global supply chain.
The Department of Defence Production issued 1,762 export authorization's in 2024-25, up from 1,507 in 2023-24, registering a 16.92% growth, while the number of exporters increased by 17.4% during the same period.
India’s diverse export portfolio includes bulletproof jackets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes.
India now exports defence equipment to over 100 countries, with the USA, France, and Armenia emerging as the top buyers in 2023-24.
The government aims to achieve ₹50,000 crore in defence exports by 2029, reinforcing India's role as a global defence manufacturing hub while boosting economic growth.

Surge in Indigenous Defence Production

India has achieved the highest-ever growth in indigenous defence production in value terms during Financial Year (FY) 2023-24, driven by the successful implementation of government policies and initiatives led by Prime Minister Shri Narendra Modi, focusing on attaining Atmanirbharta. The value of defence production has surged to a record high of ₹1,27,434 crore, marking an impressive 174% increase from ₹46,429 crore in 2014-15, according to data from all Defence Public Sector Undertakings (DPSUs), other public sector units manufacturing defence items, and private companies.

This growth has been bolstered by the Make in India initiative, which has enabled the development of advanced military platforms including the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank (MBT) Arjun, Light Specialist Vehicles, High Mobility Vehicles, Light Combat Aircraft (LCA) Tejas, Advanced Light Helicopter (ALH), Light Utility Helicopter (LUH), Akash Missile System, Weapon Locating Radar, 3D Tactical Control Radar, and Software Defined Radio (SDR), as well as naval assets like destroyers, indigenous aircraft carriers, submarines, frigates, corvettes, fast patrol vessels, fast attack craft, and offshore patrol vessels.

Key Points:

65% of defence equipment is now manufactured domestically, a significant shift from the earlier 65-70% import dependency, showcasing India's self-reliance in defence.
A robust defence industrial base includes 16 DPSUs, over 430 licensed companies, and approximately 16,000 MSMEs, strengthening indigenous production capabilities.
The private sector plays a crucial role, contributing 21% to total defence production, fostering innovation and efficiency.
India targets ₹3 lakh crore in defence production by 2029, reinforcing its position as a global defence manufacturing hub.

Key Defence Acquisitions and Approvals

Procurement of Light Combat Helicopters (LCH) Prachand: The Ministry of Defence signed two contracts with Hindustan Aeronautics Limited (HAL) on March 28, 2025, for 156 LCH Prachand helicopters worth ₹62,700 crore (excluding taxes). The Indian Air Force will receive 66 helicopters, while the Indian Army will get 90. Deliveries will begin in the third year and continue over five years. Designed for high-altitude operations above 5,000 meters, LCH has over 65% indigenous content, involving 250 domestic companies, mostly MSMEs, and generating over 8,500 jobs.

Wet Leasing of Flight Refueling Aircraft (FRA): The Ministry of Defence signed a contract with Metrea Management to lease one KC-135 Flight Refuelling Aircraft (FRA) to provide air-to-air refuelling training for Indian Air Force and Indian Navy pilots. This is the first FRA to be wet leased by the IAF, with delivery expected within six months.

Approval for Advanced Towed Artillery Gun System (ATAGS): The Cabinet Committee on Security (CCS), chaired by the Prime Minister, approved the procurement of 307 ATAGS along with 327 High Mobility 6x6 Gun Towing Vehicles for 15 Artillery Regiments under the Buy Indian–Indigenously Designed, Developed, and Manufactured (IDDM) category at a cost of ₹7,000 crore. Developed by DRDO in collaboration with Bharat Forge and Tata Advanced Systems, ATAGS boasts a range of over 40 km, advanced fire control, precision targeting, automated loading, and recoil management. The Indian Army has extensively tested the system in diverse terrain and weather conditions, proving its accuracy and reliability.

Record Defence Contracts in 2024-25

The Ministry of Defence has signed a record 193 contracts in 2024-25, with the total contract value surpassing ₹2,09,050 crore, nearly double the previous highest figure. This milestone reflects the government’s commitment to strengthening national security through enhanced procurement and modernization of the Armed Forces.

Of these, 177 contracts, accounting for 92 percent, have been awarded to the domestic industry, amounting to ₹1,68,922 crore, which is 81 percent of the total contract value. This significant focus on indigenous manufacturing aligns with the vision of self-reliance in defence production, boosting local industries and generating employment across the sector.

Make in India (Defence)/ Explainer/ 01

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