India puts domestic industry at heart of new military equipment orders

India approves $11.6 billion worth of military hardware procurement, with nearly all acquisitions to be sourced from domestic manufacturers.

Defense Ministry statement reveals that approximately 98% of the latest round of military acquisitions will be made from the Indian Industry, marking a significant shift in government policy to reduce reliance on foreign arms suppliers.

Private industry's involvement in defense manufacturing has helped India increase the share of equipment produced domestically, with the country aiming to further boost its share in defense production to 50%.

NEW DELHI — India will source nearly all of $11.6 billion worth of recently approved military hardware from domestic manufacturers, underscoring New Delhi's push to reduce dependence on foreign arms suppliers as it modernizes its armed forces.

The Defense Acquisition Council headed by Defense Minister Rajnath Singh granted "in principle" approval, which is essentially a green light to begin the procurement process.

"Approximately 98% of procurements will be made from the Indian Industry," a Defense Ministry statement said on Monday.

The ambitious goal to source nearly all of the latest round of military acquisitions domestically comes amid a significant shift in government policy. After years of relying heavily on state-owned firms for defense production, India, the world's fifth largest military spender, has encouraged a larger role for the private sector as part of efforts to build a more dynamic military industrial base.

The latest military equipment approvals span all three services and cover a broad range of equipment. For the Army, they include advanced light helicopters, chemical, biological, radiological and nuclear reconnaissance vehicles, mine-laying vehicles, high mobility vehicles and portable bridges to cross rivers and difficult terrain.

The Navy will get new surveillance radars to replace aging systems at naval air stations. The approvals also include funding to design and develop marine gas turbines domestically. India builds its own warships but still imports propulsion systems from overseas suppliers – a gap seen as a major strategic vulnerability.

The Air Force acquisitions include a ground-based multi-purpose jammer for electronic warfare and unspecified equipment to enhance the war-fighting capability of fighter jets, transport aircraft and helicopters.

The funds will be allocated from the $86 billion annual defense budget approved earlier this year.

The involvement of private industry in defense manufacturing has helped India increase the share of equipment produced domestically and reduce reliance on imports. The government says roughly 65% of India's military hardware is now produced domestically, marking a major reversal from a decade ago when that same share -- about two-thirds of its military hardware—was imported.

Nearly a quarter of the approximately $20 billion worth of defense equipment produced in the last fiscal year, 2025–26, came from private companies.

Pointing out that private industry brings efficiency, research capabilities and a greater willingness to take risks, Defense Minister Singh said earlier this year that the country aims to increase its share in defense production to 50%.

Private defense companies now manufacture everything from radars, artillery guns, armored vehicles, missiles and ammunition to drones, small arms, aerostructures and naval systems, expanding into areas once dominated by state-owned manufacturers.

The emphasis on domestic manufacturing aims to reduce the country's strategic vulnerability to foreign suppliers and ensure that the military can replenish equipment and weapons faster during hostilities. Observers, however, point out that some of this equipment such as drones, uses several imported components like sensors and avionics, making the country still dependent on foreign technology and supply chains.

India also continues to rely heavily on foreign suppliers for several key military platforms such as fighter jets.