Decadal Shift in India’s Defence Sector: Achieving Indigenisation and Export Growth

A comprehensive review published on June 21, 2026, has underscored a landmark transformation in India’s defence landscape over the past decade. Once characterized as one of the world’s largest importers of military hardware, India has successfully pivoted toward indigenisation and export-led growth. This shift represents a critical component of the 'Aatmanirbhar Bharat' initiative, aiming for strategic autonomy in national security.

The report identifies several key drivers for this metamorphosis. Central to this progress are the 'Positive Indigenisation Lists' (PILs), which have systematically restricted the import of thousands of items, ranging from simple components to complex weapon systems like artillery guns and corvettes. By providing a clear roadmap for the domestic industry, these lists have incentivized local Research and Development (R&D) and manufacturing.

Furthermore, structural reforms have played a pivotal role. The corporatization of the Ordnance Factory Boards (OFB) into seven new Defence Public Sector Undertakings (DPSUs) has improved efficiency and accountability. Simultaneously, the government has liberalized Foreign Direct Investment (FDI) norms and simplified industrial licensing, encouraging global majors to co-develop and co-produce in India. The establishment of Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu has further created a conducive ecosystem for MSMEs and startups through the iDEX (Innovations for Defence Excellence) platform.

The results are evident in the surge of defence exports, which now include advanced platforms such as the BrahMos supersonic cruise missiles, Tejas Light Combat Aircraft, and various surveillance systems. This transition not only reduces the fiscal burden of imports but also enhances India’s soft power and strategic influence in the Global South.