In an important event for India’s defence industry, Prime Minister Narendra Modi and Spanish Prime Minister Pedro Sanchez on Monday will dedicate the TATA Aircraft Complex at TATA Advanced Systems Limited (TASL) in Hyderabad. This new factory will produce the C295 military transport aircraft marking a significant step towards making India self-reliant in defence. Out of the 56 C295 aircraft ordered for the Indian Air Force, 16 will be sent from Airbus in Spain, while the remaining 40 will be built in India.
The TATA Aircraft Complex represents Prime Minister Modi’s vision for Aatmanirbhar Bharat, which means a self-reliant India. This initiative shows the government’s commitment to reduce dependence on foreign countries for defence needs and to build up local manufacturing capabilities. India aims to become a major player in the global defence market.
Key achievements in Aatmanirbhar Defence
Increased defence budget and production: India has significantly increased its defence budget, rising from Rs3 lakh crore in 2013-14 to Rs5.93 lakh crore in 2023-24. This funding allows for the development of advanced military equipment and helps the country reach its highest-ever defence production output of Rs1.27 lakh crore in 2023-24, up from Rs40,000 crore in 2013-14.
Surge in defence exports: India’s defence exports have grown dramatically, climbing from Rs686 crore in 2013-14 to Rs21,083 crore in 2023-24. Indian-made military products are now being sold to over 100 countries, showcasing their quality and reliability. Products range from basic items like helmets and bulletproof jackets to advanced weapon systems like the BrahMos missile.
Reduced import dependence: India has made great strides in lowering its reliance on foreign defence purchases. The share of defence spending on foreign procurement decreased from 46 per cent in 2018-19 to 36.7 per cent by December 2022.
Important policy changes: The Defence Acquisition Procedure (DAP) 2020 introduced a requirement for 50% indigenous content in procurement contracts. This means that international defence companies are encouraged to set up production facilities in India, allowing for local assembly of key components. The Ministry of Defence (MoD) has also published its fifth Positive Indigenisation List, which includes 346 items for exclusive procurement from Indian sources. So far, over 12,300 items have been indigenised, with the Srijan Indigenisation Portal helping identify local suppliers.
Building infrastructure and partnerships for defence
Defence industrial corridors: India has created two major defence industrial corridors in Tamil Nadu and Uttar Pradesh, attracting investments of Rs7,000 crore. These corridors support local defence production and strengthen manufacturing in areas like aerospace and naval systems.
Strategic joint ventures: The collaboration for C295 manufacturing with Spain and TATA Advanced Systems highlights the high-impact partnerships driving India’s defence sector. Other important collaborations include partnerships with Lockheed Martin for C-130J Super Hercules airframes, a joint venture with Russia for AK-203 rifles and a facility for Safran’s Maintenance, Repair, and Overhaul (MRO) services. Saab’s production of Carl Gustaf M4 rocket systems in India is a significant example of foreign companies investing in local defence manufacturing.
Advancements in naval and air platforms: India’s naval capabilities have improved greatly, with the INS Vikrant aircraft carrier being the largest warship ever built in India. The country is also home to Asia’s largest helicopter manufacturing facility, located in Tumakuru, which supports advanced aviation technology.
Supporting startups and MSMEs in defence growth
Under Prime Minister Modi’s leadership, small businesses and startups are gaining importance in the defence sector. In 2024, Rs1,500 crore has been set aside from the defence budget to support startups and MSMEs. Currently, around 8,000 MSMEs are involved in the defence industry, with plans to double this number in the coming years.
The Innovations for Defence Excellence (iDEX) initiative has encouraged over 400 startups and MSMEs to provide innovative solutions for defence. So far, 35 items worth Rs2,000 crore have been indigenised through iDEX, showing the potential for young entrepreneurs to impact India’s defence landscape.
A bright future: India as a defence powerhouse
With the opening of the TATA Aircraft Complex for C295 aircraft production, India is not just assembling planes, it is establishing itself as a defence powerhouse. From building Asia’s largest helicopter facility to supporting local startups and developing advanced naval platforms, India’s defence sector is now a self-sustained model of growth. The country’s ability to export to over 100 nations, form significant defence partnerships and achieve record levels of local production highlights India’s steady rise on the global stage.
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Aatmanirbhar Bharat: Tata Aircraft Complex tells the story of India’s growing defence capabilities
