A country that can make its own weapons and defend its people without external support can claim to be a true powerhouse. At a time of heightened geopolitical risks, Indian industry, government and academia must come together to support self-reliance.
With the success of Operation Sindoor, India has established itself as a military power capable of defending its people without external support. This is the result of not just the government’s strategic interventions and the valour of our armed forces, but also our economic ascendency and domestic industrial excellence.
With a “focused, measured and non-escalatory” approach, the operation neutralised imminent threats while avoiding civilian casualties. India’s defence systems intercepted most aerial threats and showcased our technological edge and operational preparedness to the world.
India’s ascent as a global power is closely intertwined with its pursuit of defence self-reliance. The ongoing transformation in the sector is a quiet revolution that positions the country as a formidable global player in military manufacturing. Defence exports in 2024-25 reached ₹23,622 crore, a remarkable 34-fold increase over ₹686 crore in 2013-14. This exponential growth is the outcome of sustained policy initiatives under the twin pillars of Atmanirbhar Bharat and Make in India, including production-linked incentives and targeted investment support.
Domestic defence manufacturers are increasingly meeting the evolving requirements of our armed forces. The inauguration of the BrahMos Aerospace Integration and Testing Facility in Lucknow, with an annual production capacity of up to 100 missiles, highlights our growing competitiveness. This manufacturing surge has enhanced national security and transformed defence public sector units into lucrative investment opportunities, delivering robust outcomes.
For the sector to go to the next level, industry must come together and plan ahead. Collaboration among public and private sector companies, including startups, and academia is essential to drive innovation, scale up production, and develop advanced indigenous capabilities. This collective effort reduces our dependence on imported hardware, strengthens national security and ensures the armed forces are equipped to swiftly respond to emerging threats. Achieving strategic objectives while reducing our dependence on imported military hardware is vital given our complex geopolitical environment. The government’s 15- year defence modernisation roadmap, backed by a $160-200 billion business pipeline over the next five years, creates unparalleled opportunities for growing domestic industry. Key reforms, including positive indigenisation lists and a mandate reserving 75 percent of capital acquisitions for local suppliers, are driving a paradigm shift towards indigenous manufacturing. Initiatives—like the Defence Industry Corridors, Defence Testing Infrastructure Scheme, relaxed foreign investment norms, and the iDEX, which, as of this February, has engaged with 619 startups and smaller enterprises, addressing 549 problem statements and resulting in 430 signed contracts—will foster innovation and private sector participation. Today, private sector companies are manufacturing and exporting advanced weapon platforms, systems, and sub-systems. Encouraged by the impetus provided by the government, many of them are investing in developing technology and enhancing capacity.
With the government declaring 2025 the year of defence reform, collaboration between industry, academia, and armed forces is shaping a secure, self-reliant future for India that reflects its strategic ambitions.
On the economic front, India continues to display remarkable resilience amid global uncertainties. April 2025 saw merchandise exports surge 9 percent to $38.49 billion, driven by advanced sectors such as electronics and engineering. Services exports rose to $35.31 billion, reflecting robust international demand. Domestic indicators, too, underscore growing consumer confidence and proactive policy support.
To propel the country’s growth in the face of global uncertainties, a cohesive approach among businesses, investors, and policymakers is essential to safeguard supply chains, diversify markets, and boost domestic production. By fostering innovation, enhancing competitiveness, and embracing sustainability, industry can help build a resilient economy that supports national security objectives while creating jobs and driving exports.
Strategic reshaping of trade and supply chains underscores India’s commitment to safeguarding long-term national interests. Economic strength is inseparable from national security, with a stable and secure environment underpinning sustained growth. India’s resilient macroeconomic fundamentals and diversified trade portfolio have minimised the regional conflict’s economic impact. Bilateral trade negotiations and agreements including the India-UAE Comprehensive Economic Partnership Agreement, free trade agreements with Australia and the UK, and the ongoing talks with the EU and the US, aim to deepen market access, strengthen value chains, and consolidate India’s position as a reliable global trade partner. Most importantly, considering recent geopolitical developments and support extended to adversarial entities by some countries, Indian industry must exercise prudence. Investments or collaborations should be carefully scrutinised to ensure they don’t indirectly benefit these countries. Aligning business engagements with the nation’s strategic and ethical imperatives is essential.
Amid shifting global alliances, India maintains balanced and trusted relations with major powers and the Global South. Its stature as the world’s largest democracy and a leading voice for the Global South enhances its credibility and influence in global governance. Operation Sindoor has underscored that India can play a strong role in fostering a more representative, credible and future-ready international order.
Chandrajit Banerjee | Director General, CII
Published – June 20, 2025
source : https://www.newindianexpress.com/
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