Aatmanirbharta in Defence is Essential for Strategic Preservation
Deliberating on India’s Defence Vision, Defence Secretary Rajesh Kumar Singh emphasized the importance of self-reliance, or Aatmanirbharta, in maintaining the country’s strategic autonomy. He highlighted that this vision aligns with the broader goal of achieving a Viksit Bharat, aiming to expand India’s GDP from $4 trillion to $32 trillion by 2047. Singh made these remarks during a defence conclave held in New Delhi on May 29-30, 2025, where he discussed the significant strides made in India’s defence sector over the past decade.
Transformation in Defence Exports
During his address, Defence Secretary Singh noted a remarkable transformation in India’s defence exports. He pointed out that India has shifted from being the largest importer of defence equipment in 2015 to becoming one of the top 25 exporters today. Over 100 Indian companies are now exporting to more than 100 countries, with products ranging from missiles like BrahMos to various types of ships and aircraft. This surge in exports is evident, as the defence exports have increased 30-fold over the last decade, reaching ₹23,622 crores in the last financial year. The domestic defence industry has also expanded significantly, comprising 16 Defence Public Sector Undertakings (PSUs), 430 licensed companies, and approximately 16,000 Micro, Small, and Medium Enterprises (MSMEs). Domestic sales have risen from ₹43,746 crores in 2014 to ₹1,27,000 crores in 2023-24, showcasing the sector’s robust growth.
Record Modernization Budget Utilization
Singh highlighted a significant achievement in the Ministry of Defence’s budget utilization, stating that for the first time in five years, the defence modernization budget has been fully utilized during the financial year 2024-25. He revealed that the Ministry signed contracts worth a record ₹2 lakh crores in the last financial year, doubling the figures from 2023-24. This unprecedented investment is expected to accelerate the modernization of the armed forces and support the Ministry’s efforts to secure a higher share of the union budget. Singh aims for a minimum defence-to-GDP ratio of 2.5% within five years, with aspirations to reach 3% in the medium term.
Streamlining Procurement Processes
Addressing procurement timelines, Singh announced that the Ministry of Defence has implemented reforms to reduce the duration of certain processes in the procurement cycle. These changes are projected to save approximately 69 weeks overall. The Defence Acquisition Procedure 2020, which outlines the procurement process, is currently under review to adapt to contemporary needs. Singh emphasized the necessity of moving away from traditional cost-plus procurement methods, which primarily favored the public sector, towards a competitive pricing model that allows both public and private sectors to compete for orders. This new approach is already being applied to shipbuilding and the Advanced Medium Combat Aircraft (AMCA) project.
Encouraging Private Sector Participation
In his address, Singh assured the private sector of improved ease of doing business and a level playing field. He urged private companies to prioritize research and development, as well as capital investment in equipment and engineering capabilities. Singh stressed that companies lacking engineering expertise or the willingness to invest in R&D should reconsider their entry into the defence sector. He asserted that significant contributions to India’s strategic autonomy would only come from firms committed to establishing a localized manufacturing ecosystem within the country.
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