India has sharply reduced its dependence on foreign defence equipment, with overseas procurement accounting for around 12% of capital defence purchases in FY25, compared with approximately 49% in FY19.
The decline reflects the government's Atmanirbhar Bharat strategy, supported by Positive Indigenisation Lists, dedicated domestic procurement budgets and increasing participation from Indian public-sector companies, private manufacturers, MSMEs and start-ups.
The latest indigenisation push includes 405 strategically important items, covering components and subsystems for aircraft, armoured vehicles, warships and defence electronics. Once indigenised, these are intended to be sourced from domestic industry.
India's expanding manufacturing base has also supported a significant rise in defence exports, with Indian missiles, radars, electronic warfare systems and other equipment increasingly reaching international customers.
However, achieving deeper technological self-reliance remains a challenge, as some domestically manufactured systems continue to depend on imported components, technologies or licensed production.
The overall trend nevertheless represents a significant structural shift in India's defence industry—from heavy reliance on imports toward domestic manufacturing, indigenous technology development and a growing defence export ecosystem.On Date: