The establishment of the advanced drone manufacturing facility in Nagpur by the Economic Explosives Limited (EEL), in collaboration with Maharashtra Government, marks a defining moment for India’s defense sector. With innovations like “Nagastra-1” and the development of the Medium Altitude Long Endurance Unmanned Aerial Vehicle (MALE UAV), the EEL is setting new benchmarks for indigenous production.
In keeping with the motto of a self-reliant India (Atma Nirbhar Bharat), India has been making rapid progress in the indigenous manufacture of warships, aircraft, and defense equipment. Now the country boasts of being an exporter of Defense supplies.
India, which exports defense equipment to over 100 countries, including the USA, France, and Armenia and the countries in South East Asia and South America, recorded exports worth Rs. 23,622 crore in the Financial Year 2024-2025. Now, the Defense Ministry has set an ambitious target of Rs 50,000 crore defense exports by 2029.
India’s progress in advancing expertise in Defense is proved by the recent decision to acquire a controlling stake in Sri Lanka's Colombo Dockyard PLC for Rs.. 452 crore. The deal is the first international acquisition.
Ship manufacture
As part of the plan, indigenously made INS Arnala, an anti-submarine warfare shallow water craft (ASW SWC), was recently commissioned into the Indian Navy at a function held at L&T Shipyard at Kattupalli, Tamil Nadu. INS Arnala, with 80 % indigenous content, has been built jointly by the Garden Reach Shipbuilders and Engineers (GRSE), Kolkata, and Larsen and Toubro Shipbuilding, Tamil Nadu.
The warship is the first of the eight ASW SWCs built indigenously. The 77.6 meters long warship, is the largest Indian Naval warship propelled by a Diesel Engine-Waterjet combination. The ship designed for coastal defense and shallow water operations, displaces over 1,490 ton. The ship was commissioned into the Indian Navy on June 18. INS Arnala is named after the historic fort “Arnala” located off Vasai near Mumbai It reflects India’s rich maritime heritage.
Early this year (January) two warships- INS Nilgiri and INS Surat and a submarine- INS Vaghsheer, built entirely in India were commissioned. The stealth-capable INS Nilgiri is the flagship vessel of a new class of frigates - Project 17A - which will have seven ships and is a major evolution over the “Shivalik-class” currently in service.
Guided missile destroyer INS Surat, larger than the ”Nilgiri”, is the last ship of the “Visakhapatnam class”, which is seen as the Navy's most powerful surface combatant. It features subsystems from Russian and Israeli warships, as well as Ukrainian. The vessel is India's first “AI-enabled warship”.
INS Vaghsheer is the last of six new-generation, diesel-electric submarines in “the Scorpene class”, which can fire torpedoes and anti-ship missiles, meaning it can target and destroy enemies from the air and sea. The remaining ships in the series are being built at Mazagon Docks Limited, Mumbai, and the Garden Reach Ship Builders and Engineers, Kolkata. Notably, India has inducted 33 warships in the last decade and a further 62 warships, and a submarine, are being built.
Production
India’s Indigenous defense production reached up to Rs.1.27 lakh crore in the financial year 2024 (174 % growth compared to the financial year 2015) while defense exports increased by 34-fold in a decade to Rs.23,662 crore.
Private participation
The country’s Indigenous defense manufacturing ecosystem has gained unprecedented confidence through the participation of many private companies in defense production. The private sector, once a minor player, now drives innovation and delivers cutting-edge systems for modern warfare, with companies such as Tata Advanced Systems, L&T, and Adani Group expanding their portfolios and securing major contracts. Private firms now account for about 65% of defense exports.
Bharat Forge’s new manufacturing facility and its exports of advanced artillery systems underscore the sector’s growing technological prowess and export ambitions. For over a decade, Bharat Forge located at Pune in Maharashtra has established multiple capabilities in Defense manufacturing, catering to the Indian and global Armed Forces.
The Tata Advanced Systems’ agreement with “Dassault Aviation” to manufacture Rafale fighter jet fuselages in Hyderabad is another landmark. This is for the first time, Rafale fuselage production is being carried out outside France, positioning India as a key player in the global aerospace supply chain and boosting its technological capabilities.
Fighter Jets
The Indian Air Force also plans to indigenize its entire fighter jet fleet by 2042. At present IAF’s strength has been reduced to 30-odd fighter squadrons, from a sanctioned strength of 42.5 squadrons making the Government expedite pending projects like the Tejas Mk1A, Tejas Mk2, and MRFA.
The Govt has also approved the “'Made in India” fighter jet program to produce a fifth-generation stealth fighter jet, the advanced medium combat aircraft (AMCA). The Defense Ministry has sanctioned the Aeronautical Development Agency (ADA), Bangalore, and Hindustan Aeronautics Limited-(ADL-HAL combine), to develop the aircraft from the ground up, by leapfrogging technological barriers using local resources, timelines, and control. The ADA-HAL combine aims to involve a wide consortium of public sector and private vendors like Bharat Electronics, Larsen & Toubro, and Godrej Aerospace.
The AMCA is being designed to meet specific Indian needs. Conceived as a twin-engine, 25-tonne multi-role stealth fighter, the AMCA seeks to integrate internal weapons bays, serpentine air intakes, radar-absorbent materials, AI-assisted mission systems, and sensor fusion. It is also envisioned in two variants—a Mark 1 with an imported engine (possibly General Electric’s GE F414 power pack) and a Mark II with an indigenous to-be-developed engine. Delivery of the first few prototypes is scheduled for 2035.
The AMCA, along with the Tejas Light Combat Aircraft (LCA), is expected to form the backbone of the IAF in the coming decades. The project also comes amid heightened tensions with Pakistan following “Operation Sindoor” which claimed over 100 terrorists.
DRDO
To encourage indigenous production the Defence Research and Development Organisation (DRDO) has transferred 1,950 systems and has signed 256 new licensing agreements. It has granted seven new projects to private Micro, Small, and Medium Enterprises (MSMEs) and start-up defense industries under the Technology Development Fund scheme.
These projects aim to cater to the diverse requirements of the armed forces and the aerospace and defense sectors and aerospace fields. The indigenous development of these technologies is expected to enhance the military-industrial ecosystem.
The seven new projects are: “Indigenous Scenario and Sensor Simulation Toolkit”, to develop a toolkit for simulating realistic scenarios to train pilots. It will enable full mission planning and large-force engagement. The project has been awarded to the startup company “Oxygen 2 Innovation Pvt Ltd”, located in Noida.
The “Underwater Launched Unmanned Aerial Vehicle” project focuses on developing versatile marine battlefield accessories for various combat roles. The main objectives are Intelligence, Surveillance, and Reconnaissance (ISR) and maritime domain awareness (MDA). The project has been awarded to “Sagar Defence Engineering Pvt Ltd”, based in Pune.
The “Long-range Remotely Operated Vehicles for Detection & Neutralization” project seeks to develop the Long-range Remotely Operated Vehicles to detect and neutralize underwater objects. This system will allow the identification, localization, and neutralization of underwater objects while keeping important assets away from the operational area. The project has been awarded to “IROV Technologies Pvt Limited”, located in Kochi Kerala.
The “Development of Ice Detection Sensor for Aircraft” project involves developing an Ice Detection Sensor for Aircraft. This sensor aims to detect icing conditions during flight caused by supercooled water droplets that freeze upon impact with the aircraft’s external surfaces. The data collected by the sensor will be used to activate the aircraft’s anti-icing mechanism. “Craftlogic Labs Pvt Ltd”, based in Bengaluru, has been awarded this project.
The “Development of Radar Signal Processor with Active Antenna Array Simulator” project, sanctioned to “Data Pattern (India) Limited” in Chennai, will enable the deployment of a multiple-target system for testing and evaluating multiple short-range aerial weapon systems. It will serve as the basic building block for larger radar systems.
“Accord Software & Systems Pvt Ltd” in Bengaluru has been sanctioned the “Development of Indian Regional Navigation Satellite System-based Timing Acquisition & Dissemination System project”, which aims to enable the indigenization of timing acquisition and dissemination systems, utilize the Indian Constellation for acquiring time, and develop a customized and flexible timing system based on range requirements.
Besides “Alohatech Private Limited” in Coimbatore has been sanctioned “Development of Graphene-Based Smart & E-textiles for Multifunctional Wearable Applications project”, which will focus on developing conductive yarn and fabric-making processes using graphene nanomaterials and conductive inks. The outcome will be advanced nanocomposite materials-based E-textiles utilizing the inherent advantages for practical clothing applications.
Aerospace
The BrahMos Aerospace Private Limited (BAPL) which is a joint venture between India and Russia, has a key unit at Nagpur in Maharashtra apart from Hyderabad. The propulsion systems of BrahMos missiles are supplied by “Solar Defence and Aerospace Limited” (SDAL). The company, located in Nagpur, Maharashtra, is known for developing the “Rudrastra Hybrid Vertical Take-off and Landing (VTOL) Unmanned Aerial Vehicle (UAV)” and the “Bhargavastra” counter-drone system.
SDAL makes ammunition and air bombs to name a few. It is also involved in the Vikram-1 satellite launch vehicle project, providing the third-stage motor. It is also making the “e Pinaka” rockets for the armed forces, apart from “Nagastra” loitering munitions and other types of ammunition. “Nagastra” was used in Operation Sindoor.
In another development, Economic Explosives Limited (EEL), a subsidiary of Solar Industries India Limited(SIIL), has agreed to the Maharashtra Government, to develop a major defense and aerospace project in Nagpur at an estimated cost of Rs. 12,700 crore. The project is to expand production capacity in areas including drones, unmanned aerial vehicles (UAVs), counter-drone systems, explosives, and the development of new products, such as military transport aircraft.
The establishment of this advanced drone manufacturing facility marks a defining moment for India’s defense sector. With innovations like “Nagastra-1” and the development of the Medium Altitude Long Endurance Unmanned Aerial Vehicle (MALE UAV), the EEL is setting new benchmarks for indigenous production. This initiative not only enhances India’s self-reliance in defense but also positions Nagpur as a strategic hub for cutting-edge military technologies. This facility is a testament to the country’s determination to lead in the domain of advanced defense solutions. Apart from defense PSUs carved out of ordnance factories, even private sector industries have checked in to make high-calibre ammunition.
Export
In the last decade (2015-2025), India has cumulatively exported defense goods and equipment worth Rs 1,09,997 crore. They include missile systems like the Akash Surface-to-Air Missile (SAM), Advanced Towed Artillery Gun Systems (ATAGS), naval platforms such as fast attack craft and offshore patrol vessels, as well as aerospace assets like the Light Combat Aircraft (LCA) Tejas and Advanced Light Helicopters (ALH Dhruv), Chetak helicopters, Dornier aircraft, fast interceptor boats, and lightweight torpedoes and bulletproof jackets. It has exported the BrahMos missile to the Philippines and the Akash air defense missile system to Armenia in the recent past.
While India’s exports stood at Rs. 23,622 crore in the Financial Year 2024-2025, it comprised exports worth Rs 15,233 by the private sector and exports worth Rs 8,389 crore by the Defense Public Sector Undertakings (DPSUs). However, the Indian industry still relies on imports for critical components for defense equipment such as engines, avionics, and sensors.
According to Brigadier (Retd) Sudhir Sawant, an emphasis on indigenization is the best decision. It will go a long way in achieving self-reliance in Defense production. It is appreciated that the Government is transparent about Defense deals. However, we are yet to get detailed information about the equipment used, equipment lost, and the members of the armed forces injured or perished in the recent “Operation Sindoor”. The government should come out with full information so that it will become clear who deserves awards.