§1How big it is
Defence production Rs 1,27,434 crore in FY 2023-24, up 174% from Rs 46,429 crore in 2014-15
PIB backgrounder (Ministry of Defence): Make in India Powers Defence Growth (3 Apr 2025)Defence exports record Rs 23,622 crore in FY 2024-25 (private sector Rs 15,233 crore, DPSUs Rs 8,389 crore)
PIB backgrounder (Ministry of Defence): Make in India Powers Defence Growth (3 Apr 2025)Private sector contributes 21% of total defence production
PIB backgrounder (Ministry of Defence): Make in India Powers Defence Growth (3 Apr 2025)
§2Ways to get started
- Precision machining supplier to DPSUs
- Cable harness and electronic sub-assembly
- Defence startup via iDEX challenge
- Testing / calibration services
- MRO spares indigenisation via SRIJAN
§3Hubs and clusters
- Defence Industrial Corridors: Uttar Pradesh (6 nodes) and Tamil Nadu (Rs 8,658 crore+ invested in UP nodes per PIB)
- Bengaluru and Hyderabad - aerospace and defence electronics (well-known)
§4Licences and registration
- Industrial licence from DPIIT/MoD for items on the defence licensing list (many parts and components are de-licensed - check list)
- Vendor registration with DPSUs, Ordnance factory companies and Services (via SRIJAN portal for indigenisation)
- AS9100 quality certification for aerospace supply
- Export authorisation from DDP for military items (SCOMET)
- Udyam Registration (MSME) - free, online, PAN + Aadhaar based
- GST registration (mandatory above turnover threshold or for inter-state supply / e-commerce sale)
- Shops & Establishment registration or Factory Licence (Factories Act / state rules) depending on size and power use
- Consent to Establish and Consent to Operate from the State Pollution Control Board - category (Red/Orange/Green/White) as per CPCB 2025 harmonised list; White category is exempt from consent
- IEC (Importer Exporter Code) from DGFT if you import or export
§5Regulators
- Department of Defence Production (MoD)
- DGQA / DGAQA (quality assurance)
- DGCA (civil aerospace)
- MHA / DPIIT (arms licensing under Arms Act)
§6Government help
- iDEX (grants up to Rs 1.5 crore; ADITI up to Rs 25 crore)
- Technology Development Fund (TDF)
- Make-I / Make-II / Make-III procurement
- Positive indigenisation lists
- Defence Industrial Corridors (UP, TN)
- SRIJAN indigenisation portal
- Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)
§7For exports
- Department of Defence Production (export promotion cell)
- EEPC India (general engineering)
§8Pros and cons
Merits
- Government targets Rs 3 lakh crore production and Rs 50,000 crore exports by 2029 [PIB Apr 2025]
- Procurement reserved for domestic industry in many categories
Demerits
- Long qualification and trial cycles before first order
- Single large buyer (government) with tender-based pricing
- Security and licensing restrictions