Defence Production Hits ₹1.78 Lakh Crore as Shri Sanjeev Kumar Calls for Greater Focus on Indigenous Design

Secretary, Department of Defence Production, says India must invest in research, intellectual capital and domestic design capabilities as defence exports reach nearly ₹39,000 crore

India’s domestic defence production has increased more than fourfold from ₹43,000 crore in FY 2013 to 14 to ₹1.78 lakh crore in FY 2025 to 26, according to Shri Sanjeev Kumar, Secretary, Department of Defence Production, Ministry of Defence, Government of India.
Addressing the National Conference on “Aerospace & Defence Manufacturing: Advancing India’s Leadership in Global Market” in New Delhi, Shri Kumar said the next stage of growth would require Indian companies to move beyond manufacturing and develop their own design, research and intellectual capabilities.
The conference was organised by the Associated Chambers of Commerce and Industry of India, ASSOCHAM.

Shri Kumar said India has a large pool of engineers, scientists, skilled workers and entrepreneurs, while government policy over the past decade has sought to bring these capabilities together with technology and investment.
“For a country like India, this sector has tremendous strategic and economic significance. We have a very strong pool of engineers, scientists, skilled workers, and entrepreneurs. What was required was to combine these capabilities along with modern technology, investment, and a conducive policy environment. That’s what the government has tried to do over the last decade or so,” Shri Kumar said.
He referred to measures including the reservation of 75 per cent of the capital acquisition budget for Indian companies and priority for indigenously designed and developed platforms.

The Technology Development Fund, Innovations for Defence Excellence, also known as IDEX, and the Srijan portal were among the other initiatives cited during his address.
Shri Kumar said MSMEs currently account for between 50 and 60 per cent of the value in several platforms delivered by defence public sector undertakings.
Defence exports have also increased significantly. According to Shri Kumar, India exported nearly ₹39,000 crore of defence products last year, compared with ₹686 crore in FY 2013 to 14.
Indian defence products are now exported to more than 100 countries. Aerospace products account for nearly ₹6,300 crore of the exports cited during his address.

Shri Kumar also discussed changes to the defence manufacturing licensing process.
According to him, the earlier 19 member evaluation committee has been disbanded, with applications now cleared by the concerned Joint Secretary in consultation with the Defence Research and Development Organisation and the Directorate General of Quality Assurance.
“It doesn’t require now more than three weeks, unless some information is awaited,” Shri Kumar said.
Changes have also been introduced in export licensing, with approval powers delegated to the Joint Secretary level.
A one time, multi year export authorisation mechanism is also under consideration for companies that have long term supply arrangements with global original equipment manufacturers.
Beyond production and exports, Shri Kumar placed particular emphasis on indigenous research and design.

He urged companies to invest in genuine research and development rather than depending primarily on manufacturing through technology transfer.
“No country, no company gives their latest technology to anybody else except their own forces,” Shri Kumar said.
He added, “Sometimes, few of us should take the difficult path. And the people who take the difficult path would emerge winners, as has been historically across the world.”
Shri Kumar said changes in global defence supply chains were creating opportunities for Indian companies, including young entrepreneurs and tier 1, tier 2 and tier 3 suppliers.
Shri Anil K Agarwal, Past President, ASSOCHAM, said India’s aerospace and defence sector was at an important stage of its development.

“India is no longer looking only at meeting its domestic defense requirements. We are increasingly positioning ourselves as a global manufacturing, technology, export and supply chain hub for the aerospace and defense industry,” Shri Agarwal said.
He attributed the changes in the sector to initiatives pursued by the Government of India under the leadership of Prime Minister Shri Narendra Modi and the work of the Ministry of Defence and Department of Defence Production.
The conference included three thematic sessions covering the development of a future ready aerospace and defence manufacturing ecosystem, the transition from Make in India to Make for the World and emerging technologies for defence manufacturing.
During the second session, Dr. N Yuvraj, Secretary, Industries and Commerce Department, Government of Andhra Pradesh, discussed the state’s work on testing infrastructure and supporting facilities for aerospace and defence manufacturing.

He also referred to initiatives involving aerospace, space and defence activities, including discussions with the Ministry of Defence on common storage infrastructure for munitions.
Ms. Khushboo Goel Chowdhary, Commissioner for Industrial Development and CEO, Invest Karnataka, Government of Karnataka, discussed Karnataka’s existing aerospace and defence ecosystem.
She referred to the presence of HAL, BEML, BEL, DRDO, research institutions, global original equipment manufacturers and more than 2,000 MSMEs working in the sector.
Shri Rajiv Gupta, Chairman, National Council on Aerospace and Defence, ASSOCHAM, said localisation was an initial step towards domestic manufacturing, while international competitiveness would depend on the wider ecosystem.

“The second is competitiveness of the Indian ecosystem, which is a sum total of my supply chain, my MSMEs, my IT, my ability to do the engineering, and my ability to execute proficiently on the expectations we have on a global stage as we scale up,” Shri Gupta said.
The conference also saw the release of a knowledge report titled “Aerospace and Defence Manufacturing: Advancing India’s Leadership in Global Market”, prepared by ASSOCHAM and Sugosha Advisory.
Shri D S Rajora, Deputy Secretary General, ASSOCHAM, delivered the vote of thanks.

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