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?
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.