India’s defence order pipeline hits record levels; Astra Microwave, Bharat Dynamics top buys

India's defence manufacturing sector is currently experiencing an unprecedented surge, with its order pipeline reaching record levels. This robust growth, highlighted by the fact that FY26 year-to-date clearances are nearly double the annual outlay, signifies a profound shift in the nation's approach to defence procurement and production. This phenomenon is not merely an economic uptick but a strategic realignment with deep implications for India's security, economy, and global standing.

Historically, India has been one of the world's largest importers of defence equipment, a legacy rooted in post-independence industrial policies that prioritized heavy industries but often overlooked advanced defence manufacturing capabilities. This reliance on foreign suppliers, predominantly the erstwhile Soviet Union and later Russia, along with countries like France and the US, often led to vulnerabilities, especially during geopolitical crises or sanctions. The Kargil War of 1999, for instance, underscored the critical need for indigenous capabilities and a streamlined acquisition process.

The current acceleration in capital acquisition approvals is a direct outcome of the government's sustained push towards 'Make in India' and 'Atmanirbhar Bharat' (self-reliant India) initiatives, particularly in the defence sector. Launched in 2014, the 'Make in India' campaign identified defence as a crucial sector for domestic manufacturing and job creation. This commitment was further solidified with the introduction of the Defence Acquisition Procedure (DAP) 2020, which replaced the earlier Defence Procurement Procedure (DPP). DAP 2020 explicitly prioritizes procurement from Indian vendors, enhances the 'Make' category for indigenous design and development, and simplifies acquisition processes to encourage private sector participation. It also introduced concepts like the 'Positive Indigenisation List,' barring imports of specific items to boost domestic production.

Several key stakeholders are driving and benefiting from this transformation. The **Ministry of Defence (MoD)**, through its various departments like the Department of Defence Production (DDP), is the primary architect of policy and approvals. The **Armed Forces** (Army, Navy, Air Force) are the ultimate end-users, articulating their operational requirements. **Defence Public Sector Undertakings (DPSUs)** such such as Bharat Dynamics Limited (BDL), Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Garden Reach Shipbuilders & Engineers (GRSE), have historically been the backbone of India's defence industrial base. However, increasingly, the **Indian Private Sector** – including companies like Astra Microwave, Tata Advanced Systems, Larsen & Toubro, and Mahindra Defence – is playing a pivotal role, bringing in efficiency, innovation, and advanced technology. The **Defence Research and Development Organisation (DRDO)**, though often criticized for delays, remains crucial for indigenous R&D, providing the technological base for many domestic products.

This robust order pipeline holds immense significance for India. Economically, it promises to significantly boost the manufacturing sector, creating skilled jobs, fostering ancillary industries, and reducing India's substantial defence import bill. This aligns with the Defence Production and Export Promotion Policy (DPEPP) 2020, which aims for a turnover of ₹1,75,000 Crore (US$25 billion) in aerospace and defence goods and services by 2025, including exports of ₹35,000 Crore (US$5 billion). Strategically, greater self-reliance enhances India's national security, ensuring uninterrupted supply chains during conflicts and bolstering its strategic autonomy on the global stage. It reduces dependence on geopolitical allies and allows India to pursue an independent foreign policy. Technologically, the push for indigenous manufacturing spurs innovation and R&D, leading to the development of critical dual-use technologies that can benefit civilian sectors as well.

While there isn't a specific constitutional article directly mandating defence indigenization, the underlying principle is enshrined in the **Directive Principles of State Policy (DPSP)**, particularly Article 39, which directs the state to secure a social order for the promotion of the welfare of the people, and implicitly, the protection of national interests. The power to raise and maintain armed forces, and to make laws relating to defence, is exclusively vested in the Union List (Entry 2, 7th Schedule) of the Constitution, providing the legislative framework for such initiatives. Furthermore, policies like the revised FDI policy in defence, allowing up to 74% through the automatic route and 100% with government approval, are instrumental in attracting capital and technology.

Looking ahead, the future implications are transformative. This sustained momentum could position India as a significant defence manufacturing hub, potentially even an exporter, especially to friendly developing nations. It will foster a more competitive and innovative defence industrial ecosystem, encouraging greater private sector investment and technological upgradation. However, challenges remain, including ensuring quality control, timely delivery, bridging technological gaps in critical areas, and integrating Indian manufacturers into global supply chains. The success of this initiative will hinge on consistent policy support, adequate funding for R&D, and a continued focus on ease of doing business for defence manufacturers. The record order pipeline provides a strong foundation, but the journey towards complete self-reliance and global competitiveness is an ongoing one, demanding sustained effort and strategic vision.