Presently, India stands as the third largest defence spender in the world after US and China. Equipment spending by Ministry of Defence has increased 15-20% over the last five years and is projected grow at a much escalated speed in near future.
With importing nearly USD 5.5 Billion worth of military hardware, India has emerged as the largest arms importer in the globe accounting nearly 15% of such imports internationally. Hence self-reliance to sustain the needs of Indian defence sector is of vital importance for strategic and economic reasons.
Since the government has been assiduously working upon building the defence manufacturing capabilities over the years.
With a fast growing and internationally competitive manufacturing sector, India is on its path to becoming the manufacturing hub for world corporations.
India has the third largest military in the world and is the sixth biggest defence spender. India spends around 30% of its
total defence budget on capital acquisitions and 60% of its requirements are met through imports. The ‘Make in India’
initiative by the Government is focusing its efforts on increasing indigenous defence manufacturing and becoming selfreliant.
The MAKE procedure, which aims to promote research &
development in the industry with support from the government and the placement of orders, has been
promulgated with provision for 90% funding by Government and preference to MSMEs in certain
category of projects.