India’s defence production reached INR 1.27 trillion in the financial year 2023-24, marking a 174% increase since 2014-15, according to a press release from the Ministry of Defence. Tata Advanced Systems and Bharat Forge, along with other domestic companies, contributed to this growth through the manufacturing of military platforms such as artillery systems, combat aircraft, and naval vessels.
The expansion of local defence manufacturing has reduced import dependency. Government data indicates that 65% of defence equipment is now produced domestically, a shift from the previous reliance on foreign suppliers. The country’s defence industry includes 16 Defence Public Sector Undertakings (DPSUs) and over 430 licensed private companies, supported by approximately 16,000 small and medium-sized enterprises. The private sector accounts for 21% of total defence production.
Tata Advanced Systems and Bharat Forge are involved in manufacturing advanced military equipment, including the Advanced Towed Artillery Gun System (ATAGS). The system, developed in collaboration with Bharat Forge and the Defence Research and Development Organisation (DRDO), includes 307 units of 155mm/52 calibre guns and 327 high-mobility 6×6 gun towing vehicles. The contract for these systems is valued at INR 70 billion.
Other key projects under domestic defence manufacturing include the Light Combat Aircraft (LCA) Tejas, the Arjun Main Battle Tank, the Akash Missile System, and various naval assets. The government has outlined a target of INR 3 trillion in total defence production and INR 500 billion in exports by 2029.