In Focus by The Hindu Why ‘Design in India’ must be the next step in defence manufacturing
Sep 30, 2025
Dinakar Peri, a Fellow at Carnegie India and former journalist, shares insights on India's defence manufacturing progress. He highlights the shift from a public-sector focus to significant private sector involvement since 2014. Delving into technology gaps, he discusses the implications of licensed manufacturing and the challenges of critical imports. With impressive statistics, he notes a boom in drones and defence exports, emphasizing the importance of self-reliance and indigenous R&D for national security. Peri paints a picture of a future where India leads in defence manufacturing.
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Policy Push Plus Crisis Accelerated Production
- India’s defence production rose sharply since 2014 due to policy push and crisis-driven urgency.
- Self-reliance is essential for critical systems because dependencies remain vulnerabilities.
From Foreign Orders To Indian Prime Contractors
- The government opened defence to private players and used indigenization lists to force domestic sourcing.
- This created assured demand and shifted responsibility to Indian firms to secure OEM partnerships.
Close The Critical Tech Gap
- Focus policy and investment on the remaining critical 20–40% of technology that foreign OEMs retain.
- Prioritize closing those niche gaps to move from licensed manufacture to true technological independence.