More funds likely for Raksha Mantralaya
to strengthen local manufacturing
Over the past decade, India’s defence and aerospace industry has witnessed transformative growth, marked by a strong push for indigenisation, technological advancements, and strategic collaborations
India’s foray into hypersonic technology with the successful testing of the Hypersonic Technology Demonstrator Vehicle (HSTDV) marks a significant leap forward, promising to revolutionise future missile systems.
In keeping with the trend of the past few years, India’s defence and aerospace industry is expected to receive a higher allocation, albeit modest, in the 2025-26 Budget. This would be in sync with the country’s commitment to strengthening its defence infrastructure and promoting self-reliance in military capabilities. It would also be in tune with the goal of ‘Atmanirbhar Bharat’ as envisioned by Prime minister Narendra Modi in the country’s march towards ‘Viksit Bharat’.
The budget for the Ministry of Defence in 2024-25 saw a 4.8 per cent increase over the previous year, totaling ₹6.22 lakh crore. Allocations for modernisation and infrastructure development rose by 9.4 per cent to ₹1.72 lakh crore in the 2024-25 budget.
Over the past decade, India’s defence and aerospace industry has witnessed transformative growth, marked by a strong push for indigenisation, technological advancements, and strategic collaborations. A significant development has been the focus on self-reliance through the ‘Make in India’ initiative, launched in 2014, which emphasises indigenous manufacturing of defence equipment. This policy has led to increased participation of the private sector and startups in defence production, fostering innovation and reducing dependency on imports. The establishment of defence corridors in Uttar Pradesh and Tamil Nadu has further created a conducive ecosystem for manufacturing, attracting investments and promoting research and development.
The induction of advanced indigenous platforms has been a milestone. The Light Combat Aircraft (LCA) Tejas, developed by Hindustan Aeronautics Limited (HAL), was inducted into the Indian Air Force, showcasing India’s growing capability in designing and producing modern fighter aircraft. Similarly, the Advanced Towed Artillery Gun System (ATAGS) and the Akash missile system reflect the country’s strides in developing state-of-the-art weaponry. India has also made significant progress in space-based defence applications. The Anti-Satellite (ASAT) test under Mission Shakti in 2019 demonstrated the capability to neutralize hostile satellites, placing India among a select group of nations with such capabilities. The Indian Space Research Organisation (ISRO) has played a pivotal role in this domain, developing satellites for communication, surveillance, and navigation, which are integral to modern warfare.
The integration of emerging technologies like Artificial Intelligence (AI), Big Data, and the Internet of Things (IoT) has been another crucial aspect of India’s defence advancements. AI-enabled solutions for threat detection, predictive maintenance, and unmanned systems have enhanced operational efficiency.
The Defence Research and Development Organisation (DRDO) and private firms have collaborated to develop drones and autonomous systems, such as the Rustom UAV, which are increasingly being deployed for surveillance and combat operations. In addition, India’s foray into hypersonic technology with the successful testing of the Hypersonic Technology Demonstrator Vehicle (HSTDV) marks a significant leap forward, promising to revolutionise future missile systems.
Modernising the armed forces has been a priority, with significant acquisitions and upgrades. The procurement of Rafale fighter jets from France has significantly bolstered air combat capabilities. The Indian Navy has also strengthened its fleet with the induction of indigenous platforms such as the INS Vikrant, India’s first domestically built aircraft carrier, and advanced submarines under the Project-75 initiative. Furthermore, the modernization of infantry through initiatives like the Future Infantry Soldier as a System (F-INSAS) underscores the focus on equipping personnel with cutting-edge technology.
Cybersecurity has emerged as a key focus area, given the increasing reliance on digital infrastructure. The establishment of the Defence Cyber Agency reflects India’s commitment to countering cyber threats and protecting critical defence networks. Collaboration with global tech firms and the development of indigenous encryption technologies have enhanced cyber defence capabilities.