India’s defence manufacturing sector is steadily maturing, where the transition from a development-centric to a production-centric ecosystem remains a critical inflection point. Structural hurdles, such as fragmented supply networks, limited scale, and a lack of cohesive and export-grade manufacturing ecosystems, continue to show slow progress. However, the momentum is shifting. Policy-led reforms such as DAP, indigenisation lists, and the emergence of long-term, production-focused opportunities like DCPP tenders are driving systemic changes. The goal now is not just to develop but to produce at scale consistently, indigenously, and competitively.
The challenge lies in the pace of transition. Building long-term project visibility has begun, yet the industry must gear up financially, technologically, and operationally to respond proactively. At the core of this readiness is the need for a robust industrial ecosystem. That means not just OEMs, but raw material suppliers, component manufacturers, and technology developers working in sync. The ecosystem must mature rapidly enough to support rapid production scale-up, and the adoption of advanced technologies.
To transition from reactive production to proactive value creation, investment in indigenous research and development (R&D) and novel technologies is crucial. It’s not just about integrating foreign systems. It’s about enhancing indigenous content and developing domestic capabilities. India is now ready to transition from a dependence on tech transfer to self-led innovation, except for time-critical, mission-specific systems. Paras Defence, with IDDM-aligned capabilities and partnerships across academia and global innovators, has demonstrated what this transition looks like. A mature domestic base that adds value, intellectually and technologically, is what will ultimately drive sustainable export competitiveness.
