Building upon the detailed overview of India’s defence capabilities in 2025, this commentary expands the key trends into a cohesive narrative, providing a more comprehensive perspective on the nation’s strategic direction. The emphasis on aggressive indigenisation, military modernisation, and persistent challenges forms the bedrock of this analysis, offering a deeper look into the complexities shaping India’s defence posture.
The Self-reliance Imperative: Forging a Defence Industrial Base
At the heart of India’s evolving defence strategy is the ‘Aatmanirbhar Bharat’ initiative, which has fundamentally reshaped its defence industrial base. The push for indigenous production has seen tangible and impressive results, with domestic defence manufacturing reaching a record ₹1.51 lakh crore in FY 2024–25. This marks a profound shift away from the legacy of import dependency, with domestic firms now responsible for a substantial portion of defence equipment. This success is not merely a quantitative achievement but a strategic imperative, demonstrating India’s resolve to achieve autonomy in its defence needs.
The quality and timely delivery of indigenously developed equipment are matters of human security for the armed forces personnel. If rushed, under-tested domestic products fail to match the performance or reliability of international counterparts, putting the lives of soldiers (the ultimate guarantors of state security) at unnecessary risk. Then, the closed nature of defence procurement, combined with high-value, long-term contracts, creates fertile ground for corruption and opacity, which undermine public trust and the principles of good governance — fundamental pillars of human security. The true success of Aatmanirbharta (self-reliance) in defence, therefore, lies not just in manufacturing items domestically but in ensuring these items are cost-effective, world-class, and produced under the highest standards of accountability.
Despite progress, India’s defence sector continues to grapple with various challenges. The nation’s reliance on foreign suppliers for critical high-tech components remains a significant vulnerability, creating gaps in its overall strategic autonomy
Complementing this domestic surge, India has also become a more active defence exporter. Exports have grown exponentially over the past decade, reaching ₹23,622 crore in FY 2024–25, with projections to reach ₹50,000 crore by 2029. This rising export portfolio, which includes everything from supersonic missiles to light combat helicopters, signifies India’s emergence as a credible player in the global arms market and a preferred partner for several countries.
Furthermore, the strategic incentivisation of the private sector, through schemes like Innovations for Defence Excellence (iDEX) and supportive policy mechanisms like Positive Indigenisation Lists (PILs) and the new Defence Procurement Manual (DPM) 2025, has been pivotal. These measures have cultivated a vibrant startup ecosystem and ensured that a significant portion of defence contracts are funnelled to Indian companies, strengthening the domestic ecosystem and fostering a culture of indigenous innovation.
Modernisation Across the Three Services
The aggressive push for indigenisation is parallelled by comprehensive modernisation efforts across the Indian Army, Air Force, and Navy. For the Indian Army, 2025 has been declared the ‘Year of Reforms’, with a strong focus on integration and the adoption of next-generation technologies. The army is leveraging AI for advanced Intelligence, Surveillance, and Reconnaissance (ISR) through initiatives like Project Sanjay and is modernising border infrastructure to meet evolving security challenges.
Simultaneously, the Indian Air Force (IAF) is transitioning its fleet, with the retirement of ageing aircraft like the MiG-21 and a renewed focus on indigenous platforms such as the LCA Tejas Mk1A. The service is also actively pursuing future capabilities, including the development of the 5.5-generation Advanced Medium Combat Aircraft (AMCA) and a proposed evolution into the Indian Air and Space Force (IASF), reflecting its strategic alignment with multi-domain warfare.
The Indian Army is leveraging AI for advanced Intelligence, Surveillance, and Reconnaissance (ISR) through initiatives such as Project Sanjay and is modernising border infrastructure to meet evolving security challenges
Meanwhile, the Indian Navy continues its path towards blue-water capability with its robust indigenous shipbuilding programme. The commissioning of INS Vikrant, India’s first indigenously-built aircraft carrier, and the ongoing construction of 54 other vessels solidify the navy’s ambition to expand its fleet to over 200 warships by 2035. The signing of key procurement deals for platforms like the Rafale-Marine fighter jets and the commissioning of specialised vessels, such as the anti-submarine warfare craft ‘Mahe’, further enhance its operational readiness and strategic footprint in the Indo-Pacific.
Overcoming Persistent Challenges
Despite the commendable progress, India’s defence sector continues to grapple with persistent challenges. The nation’s reliance on foreign suppliers for critical high-tech components, such as jet engines and advanced sensors, remains a significant vulnerability, creating gaps in its overall strategic autonomy. Furthermore, while India has made strides in certain areas of cyber warfare, its capabilities still lag behind major adversaries, posing a risk in the increasingly digitised battlespace.
The long-standing issue of inter-service coordination, though addressed in the ‘Year of Reforms’, has yet to be fully resolved, with the ambitious plan for Integrated Theatre Commands (ITCs) still a work in progress. Budgetary constraints also continue to plague the sector, with disproportionate funding allocated to revenue expenditure, which hinders critical modernisation and acquisition plans. While these challenges are significant, the resolute focus on domestic manufacturing, innovation, and strategic partnerships suggests a clear roadmap for addressing these issues in the coming years.
Despite progress, India’s defence sector continues to grapple with various challenges. The nation’s reliance on foreign suppliers for critical high-tech components remains a significant vulnerability, creating gaps in its overall strategic autonomy
Outlook: A Self-assured Global Player
Looking ahead, 2025 stands as a definitive year of transition for India’s defence sector. The ongoing reforms and rapid indigenisation efforts signify a profound shift in strategic thought, moving India from a reactive stance to a proactive one. The robust growth in indigenous production and exports, combined with the tri-service modernisation, paints a picture of a nation committed to building a technologically advanced and self-sufficient military.
While the journey towards complete self-reliance remains challenging, the current momentum suggests that India is well on its way to becoming a formidable regional power with a growing global footprint. The future will likely see India further leveraging its indigenous capabilities to project power, solidify its strategic position in the Indo-Pacific, and confidently navigate the complex and multifaceted security landscape of the 21st century.
India’s defence sector is undergoing a significant transformation, moving from import dependency towards self-reliance through aggressive indigenisation and modernisation efforts across its Army, Air Force, and Navy. While substantial progress has been made in domestic production and defence exports, challenges remain, including reliance on foreign high-tech components, gaps in cyber warfare capabilities, inter-service coordination issues, and budgetary constraints.
–The writer is Assistant Professor, ICFAI School of Liberal Arts, ICFAI University, Jaipur. The views expressed are of the writer and do not necessarily reflect the views of Raksha Anirveda
