India’s defence procurement from domestic sources is projected to reach ₹1,20,000 crore by the end of 2024-25, a significant increase from ₹74,000 crore in 2021-22. This surge underscores a deliberate shift towards self-reliance in defence manufacturing, driven by the need to address evolving national security challenges.
Defence Minister Rajnath Singh highlighted this transformation during a recent address, emphasising that the government is acutely aware of the changing dynamics of modern warfare. “In 2021-22, our capital acquisition from domestic sources was around ₹74,000 crore, but by the end of 2024-25, the capital acquisition from domestic sources has increased to approximately ₹1,20,000 crore,” he stated. “This change is not just about data, but also about mindset.”
Singh’s remarks reflect a broader strategic vision to fortify India’s defence capabilities through indigenous innovation. Over the past decade, the Modi government has implemented several policy initiatives to encourage domestic design, development, and manufacturing of military hardware. These efforts have prioritised local sourcing, ensuring that India’s defence sector is better equipped to meet contemporary security threats.
The minister also underscored the growing importance of non-contact warfare, particularly the role of drones, anti-drone systems, and advanced air-defence technologies. “Today’s warfare has become completely technology-oriented,” he noted. “We have seen a demonstration of this in Operation Sindoor as well. In this, we observed that the importance of non-contact warfare, such as drones, anti-drone warfare, and air-defence systems, has significantly increased.”
Looking ahead, Singh outlined three key goals for India’s defence sector: achieving self-reliance in critical defence capabilities, becoming a prominent global exporter in the defence sector, and advancing cutting-edge technologies. “First, we must achieve a high degree of self-reliance in the critical defence capabilities. Second, we must become a prominent global exporter in the defence sector,” he said. “Third, to take India forward in cutting-edge technology sectors, we must achieve advancements in some new niche technologies.”
This push for self-reliance is not merely about economic independence but also about strategic autonomy. By reducing reliance on foreign suppliers, India can ensure faster procurement cycles, better customisation of military equipment, and enhanced operational readiness. The focus on non-contact warfare technologies, in particular, reflects a forward-looking approach to defence strategy, aligning with global trends in military innovation.
As India continues to invest in its defence industrial base, the sector is poised for significant growth. The projected increase in domestic procurement signals a robust commitment to building a resilient and technologically advanced defence ecosystem. This shift could also position India as a key player in the global defence market, offering high-quality, cost-effective solutions to international partners.
The emphasis on self-reliance, coupled with a focus on emerging technologies, suggests that India is not just preparing for the challenges of today but also laying the groundwork for future security needs. As the defence sector evolves, the integration of advanced technologies and domestic manufacturing capabilities will be critical in shaping India’s strategic posture in the decades to come.