Modern warfare isn’t about having the biggest army or the heaviest tanks anymore. As Army Chief Gen Upendra Dwivedi said last week, the real edge comes from blending low-cost tools with high-end technology, a mix that, he argued, can let even a smaller force stand firm against a stronger adversary.
Speaking at a defence modernisation event, Gen Dwivedi framed self-reliance not just as patriotic rhetoric but as operational necessity.
The key, he said, lies in the “troika” of military, industry and academia, backed by a substantial budget, working together to build an ecosystem of indigenous capability.
“If you have low-cost high technology, you will be able to beat back a superior adversary. Force visualisation, force protection and force application are the three main things we need to work out,” he explained.
Here’s what this really means: battlefield advantage isn’t just about having a weapon, it’s about having one that evolves faster than the adversary’s.
“If I wanted something to fire at 100 km today, tomorrow it has to go to 300 km,” Gen Dwivedi said, making the point that self-reliance, aatmanirbharta, isn’t just about producing domestically or cutting costs. It’s about staying ahead, constantly upgrading, and innovating fast enough to outpace any adversary.
The numbers behind this push are significant. Projected defence spending for modernisation and acquisitions is expected to reach Rs 3 lakh crore annually over the next decade, with an annual growth of roughly 10%.
And the signal from the top is clear: Prime Minister Narendra Modi’s highlighting of “Made in India” systems in Operation Sindoor, from Akash missiles to the D4 anti-drone system, is more than symbolism. It reflects a frontline increasingly powered by homegrown equipment, reshaping both defence economics and doctrine.
Air Force modernisation and the Tejas gap
Air power illustrates this challenge and opportunity. With the last MiG-21 Bison squadrons now retired, the Indian Air Force (IAF) faces its lowest combat strength in 60 years. Against a sanctioned strength of 42 fighter squadrons, it will be down to 29 active squadrons—a gap the Light Combat Aircraft (LCA) Tejas Mark-1A (Mk1A) is meant to fill.
Hindustan Aeronautics Limited (HAL) is racing to accelerate Mk1A production, working with private partners to raise annual output from 24 to 30 jets by 2027. A third production line in Nashik complements existing Bengaluru facilities. The first batch of up to four Mk1As is expected between October and December, pending engine supply from GE Aerospace and completion of weapon trials.
For the IAF, timing is critical. “The MiG-21’s retirement marks the end of a defining chapter, as most senior pilots have flown it,” a defence source told Business Standard. Even at full tilt, HAL’s output may not meet the IAF’s annual requirement of 35–40 new fighters, making private-sector involvement essential to bridge the gap.
The cost advantage of homegrown equipment
Cost also drives the push for homegrown systems. Take the Light Combat Aircraft Tejas. In February 2021, India signed a contract for 83 Tejas Mk-1A jets at Rs 48,000 crore ($6.5 billion), averaging $78 million per aircraft. By August 2025, a follow-up order for 97 more jets came to Rs 62,000 crore ($7.2 billion), bringing the unit cost down slightly to $74 million, according to The EurAsian Times.
By comparison, the Navy’s 26 Rafale-M fighter jets cost Rs 63,000 crore ($7.3 billion), or roughly $280 million per plane. While the Tejas and Rafale serve different operational roles, the cost contrast shows how India can field a larger fleet of capable, homegrown jets at a fraction of the price of imported aircraft.
Missile systems follow the same logic. As per Indian Defence News, each Akash missile costs around Rs 2.5 crore ($500,000), while a full regiment, including radars and launchers, comes to about Rs 430 cror
The Akash system can engage multiple targets simultaneously and includes electronic counter-countermeasures (ECCM). By comparison, Western systems such as the US Patriot ($4–10 million per missile) or Russian S-400 ($40–50 million per missile) are significantly costlier.
The Ministry of Defence estimated in 2018 that Akash orders alone saved India Rs 34,500 crore ($5.5 billion) in foreign exchange.
Artillery mirrors this pattern. The Pinaka multi-barrel rocket launcher costs about Rs 2.3 crore ($270,000) per unit and Rs 430 crore ($60 million) per regiment.
The US HIMARS launcher, by contrast, costs $4.9 million domestically and up to $20 million for export. While HIMARS focuses on long-range precision, Pinaka delivers battlefield firepower aligned with India’s operational needs at a much lower cost.
Naval platforms also demonstrate economic and strategic benefits. The INS Vikrant, India’s first domestically built aircraft carrier, was commissioned in 2022 at around Rs 23,000 crore ($3.1 billion).
While smaller than the world’s largest carriers, Vikrant establishes a self-sustaining capability suited to India’s operational and budgetary needs.
For perspective, the US Gerald R. Ford-class and UK Queen Elizabeth-class carriers are far larger and more advanced, but India does not aim to match them directly. Its current carrier fleet includes the INS Vikramaditya, a converted Soviet-era vessel purchased from Russia, alongside Vikrant.
Looking ahead, India aims to integrate advanced global technologies into future carriers. The proposed INS Vishal could explore nuclear propulsion and the Electromagnetic Aircraft Launch System (EMALS), inspired by US Ford-class carriers.
Separately, the UK’s Queen Elizabeth-class design has been offered as a blueprint for IAC-2, a modern conventionally powered carrier adapted to Indian requirements. While these plans are still in development, they show India’s ambition to blend indigenous production with selected cutting-edge features.
Self-reliance in emerging threats
The Drone-Detect, Deter and Destroy (D4) system, developed by DRDO and Bharat Electronics Ltd, provides both soft- and hard-kill capabilities. Former DRDO chief G. Satheesh Reddy highlighted the importance of such systems during Operation Sindoor, emphasising that self-sufficiency is vital for national defence.
Across aircraft, missiles, artillery, and naval platforms, India’s indigenous defence equipment delivers functional capability at a fraction of imported costs, proving that self-reliance can be both practical and strategic.
Combat validation in Operation Sindoor
Operation Sindoor was a successful test of India’s confidence in its own kit.
The Akash missile system, D4 anti-drone system, and BrahMos supersonic cruise missile were all deployed. Loitering munitions, indigenous communications tools like the SAMBHAV secure mobile ecosystem, and integrated command systems complemented imported hardware, including Russian and Turkish equipment.
Targets included Pakistani bases, radar stations, ammunition depots and command centres across Rafiqui, Murid, Chaklala, Rahim Yar Khan, Sukkur, Chunian, Pasrur and Sialkot.
Reddy told ANI: “Many indigenous based technologies were used in this war and this war was Atmanirbhar-based warfare... The anti-drone systems, which were developed both by DRDO and industry, were very successfully used as a huge number of drones were coming in.”
Key systems included:
BrahMos supersonic cruise missile: Struck strategic Pakistani air bases, travelling at Mach 2.8–3.0, and deployable from land, sea and air.
Akash family/Akash-Teer air defence systems: Intercepted incoming drones and missiles along the western border and Line of Control.
D4 anti-drone system: Detects and neutralises drones targeting Indian positions.
Loitering munitions/strike drones: Domestically produced SkyStriker variants and Indo-Israeli systems assembled in India.
SAMBHAV secure mobile ecosystem: Managed battlefield communications.
Economic impact and exports
India’s defence exports reached Rs 23,622 crore in FY 2024–25, up 12% from the previous year.
Revenue from exports supports R&D and production costs. To fully realise the economic potential, India will need predictable long-term orders, standardised components, investment in semiconductors and sensors and an aggressive export push.
The Ministry of Defence aims to manufacture indigenous products worth Rs 3 lakh crore over the next three years, with exports of Rs 50,000 crore by 2029.
Record production
India’s defence industry produced Rs 1,50,590 crore worth of equipment in FY 2024–25, an 18% increase over the previous year and a 90% rise since 2019-20.
Defence Minister Rajnath Singh called it “a robust 18% growth over the previous year’s Rs 1.27 lakh crore and a staggering 90% increase since 2019-20, when the figure stood at Rs 79,071 crore.”
Source Name : Economic Times
DRDO chief Dr Samir V Kamat attributed this growth to strong R&D, production capabilities, and initiatives like Atmanirbhar Bharat and Make in India.
Public sector units contributed 77% of output, with the private sector’s share rising to 23% from 21% last year. Production grew 16% in the public sector and 28% in the private sector, reflecting the expanding role of both.