India's Defense Sector Shifts Towards Self-Reliance Amid Rising Regional Tensions
India is undergoing a significant transformation in its defense sector, moving from a reliance on imports to a focus on self-reliance. This shift is driven by policy changes, regional tensions, and a global increase in military demand. The Indian government has increased its defense capital acquisition budget by 18% to Rs 2.2 trillion, with a significant portion expected to be sourced from domestic suppliers. The 'Make in India' and 'Aatmanirbhar Bharat' initiatives aim to address historical weaknesses in the defense sector, such as import dependence and underdeveloped supply chains. New procurement rules prioritize Indian vendors and restrict imports of numerous items, while production-linked incentives and liberalized FDI caps are encouraging domestic manufacturing and foreign collaboration. The Defense Acquisition Procedure (DAP 2020) and its upcoming 2026 version are designed to streamline procurement processes and enhance local manufacturing capabilities.