January 15, 2025

Article

India – The World’s 4th Largest Economy. But Where’s Our Defense Autonomy?

India’s economic rise is unquestionable. With a GDP that crossed $4 trillion in 2024, it stands as the world’s 4th largest economy. But this economic strength hasn’t translated into defense autonomy. Why does India still import critical weapon systems?

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India’s growth story is remarkable. From a $2 trillion economy in 2014 to crossing the $4 trillion mark in 2024, we’ve emerged as the world’s fastest-growing major economy and a symbol of the Global South’s rise. We’ve built highways, launched missions to the Moon and Mars, and cultivated a globally respected tech sector.
But when it comes to defense, the picture becomes far less self-assured.

📉 The Autonomy Deficit

Despite our size and strength, India still imports approximately 60–65% of its conventional weaponry, including core assets like:

  • Jet engines for fighters and drones

  • Air defense systems

  • Artillery and guided munitions

  • Naval propulsion and sonar tech

  • Night-vision and thermal optics

  • Communication encryption modules

Why does a $4 trillion economy still depend on others to secure itself?

💸 Economic Power ≠ Strategic Power

India’s defense imports don’t stem from poverty or lack of budget. In fact, India is now among the top 5 defense spenders globally, with a defense outlay of ₹6.8 lakh crore (~$79 billion) in FY 2025–26.

But the issue lies in how we spend that money — and where.

Most of India’s defense capital expenditure is directed toward foreign OEMs like Dassault (France), Lockheed Martin (USA), Rafael (Israel), and Rosoboronexport (Russia). These deals:

  • Lock India into long-term dependency chains

  • Come with strict IP restrictions

  • Limit our ability to upgrade or indigenize systems

Even basic small arms — rifles, carbines, sniper systems — are imported or manufactured under license. This restricts domestic innovation, drives up costs, and creates diplomatic vulnerabilities during global conflicts.

⚙️ R&D Is Not Enough — We Need Deployment

India has excellent institutions like DRDO, HAL, BEL, and ISRO. We produce brilliant scientists and engineers. But defense R&D remains trapped in labs. Why?

Because we lack:

  • Seamless transition channels from prototype to production

  • Modular, decentralized manufacturing hubs

  • Military-run rapid testing and feedback loops

  • Government policies that prioritize Make-in-India IP, not just license manufacturing

Result: We build, test, abandon — and eventually import what we could have developed ourselves.

🇮🇳 The Real Cost of Dependency

When you don’t own your defense IP, you don’t control your own deterrence.

  • Spare parts become leverage points during conflict.

  • Upgrades must be approved by foreign suppliers.

  • Export of Indian variants becomes legally restricted.

  • And worst of all — strategic surprises become harder to counter.

With China’s rapid military modernization and an unpredictable geopolitical landscape, India cannot afford this vulnerability.

🛠️ The Way Forward: Indigenous First

India needs a defense industrial revolution that mirrors our economic success.

That means:

  • Prioritizing private defense startups alongside DPSUs

  • Funding dual-use R&D pipelines (civil + military)

  • Building modular plants for scalable ammo and tactical gear

  • Creating a clear path from TRL 4 to battlefield-ready tech

It’s not enough to be the world’s 4th largest economy. To be safe, sovereign, and future-ready, India must also be a top-tier indigenous defense manufacturer.