India’s Defence Manufacturing Sector

Foreign vendors provide for more than 50% of defence equipment procured. This offers a huge opportunity for import substitution. Favourable government policy which promotes self-reliance, indigenisation, and technology upgradation has been adopted. The policies also aim at achieving economies of scale, including the development of capabilities, for exports in the defence sector. MAKE procedure aims to promote research & development in the industry with support from the government and the placement of orders, has been promulgated with provision for 90% funding by Government and preference to MSMEs in a certain category of projects. The simplified MAKE-II was launched in January 2018, for simplification of collaboration between government and private Indian industries for indigenous design, development and manufacture of defence equipment.

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