Make in India in the Defense Sector:
Amid intense disruptions in global energy and military supply chains caused by the escalating West Asian conflict, security analysts released an exhaustive evaluation of the Make in India initiative in defense.
- Make in India in the Defense Sector launched as part of a broader national manufacturing push, Make in India in Defence is a strategic policy framework designed to transform India from a top global arms importer into a self-reliant defense manufacturing hub (Aatmanirbharta).
- Governed by the Defence Acquisition Procedure (DAP), the policy aims to build an independent Military-Industrial Complex (MIC) by cutting import dependencies, standardizing procurement, and integrating domestic private firms into global supply chains.
India’s Defense Sector:
- The Ministry of Defence was allocated a record-shattering ₹7.85 lakh crore ($83 billion) for FY2026–27, representing 14.67% of total central government expenditure.
- Out of the massive ₹2.19 lakh crore capital outlay, the government has earmarked a record 75% (₹1.39 lakh crore) exclusively for procurement from domestic industries.
- India’s defense exports hit an all-time high of ₹38,424 crore in FY2025–26, marking a staggering 62.66% year-on-year growth and a 31-fold jump over the past decade.
- Despite sweeping liberalization reforms, Defense Public Sector Undertakings (DPSUs) still control over 70% of total domestic production, creating an un-balanced theatre for private competitors.
