International Journal of Contemporary Research in Multidisciplinary

Defence is a cornerstone of national security, essential for safeguarding against both internal and external threats. A robust defence apparatus not only deters adversaries but also enhances a nation's geopolitical standing. In the rapidly evolving landscape of defence manufacturing, India has embarked on a transformative journey since the 1990s. Despite stable trends in military expenditure as a percentage of GDP, indicative of consistent resource allocation, India remains a significant importer of defence equipment. However, efforts to bolster domestic manufacturing have resulted in an 11% reduction in defence imports between 2013-17 and 2018-22. The emergence of India as a defence exporter is evident from the gradual increase in export revenue, reaching an all-time high of INR 16,000 crores (approximately USD 190.69 million) in 2023. India is emerging fast at the global stage as the fastest growing economy aiming for becoming the developed economy by 2047 with catching up to becoming the US $ 5trillion economy in the near future. In this context, the paper aims to present the nature and structure of India’s defence manufacturing sector since 1990 which is transforming at a fast rate. With ambitious targets set by the government, including a revenue goal of USD 25 billion (INR 2,257.75 billion) by 2025, India aims to strengthen its position in the global defence market. Establishment of defence industrial corridors in Tamil Nadu and Uttar Pradesh underscores the government's commitment to foster Indigenous defence production. Key players in India's defence manufacturing sector include Defence Public Sector Undertakings (DPSUs) such as Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL). However, the study reveals a disparity in R&D investments among production agencies, with most relying on the Defence Research and Development Organization (DRDO). Encouraging private sector participation is pivotal in augmenting the capabilities of DPSUs and fostering innovation in defence technologies. Through transformative public policies, the Indian government aims to fortify national borders while bolstering national income. By incentivizing private sector involvement and prioritizing domestic procurement, India seeks to achieve self-reliance in defence production.