What Happened
- India's defence imports declined by 9.3% during 2020–24 compared to the previous five-year period (2015–19), reflecting progress in the indigenisation agenda.
- Despite the decline in imports, India remained the world's second-largest arms importer in 2020–24, accounting for 8.3% of global arms imports, according to SIPRI data.
- Defence exports have surged dramatically — from negligible levels a decade ago to ₹23,622 crore in FY 2024-25, with private companies accounting for approximately 64% of export value.
- Defence capital expenditure (capex) has grown substantially, with 75% of the capital procurement budget now reserved for domestic manufacturers — up from 68% previously.
- Russia's share of Indian arms imports fell sharply from 72% (2010–14) to 55% (2015–19) to 38% (2020–24), as India diversifies supply chains toward France, Israel, and domestic sources.
- India has established two Defence Industrial Corridors — in Tamil Nadu and Uttar Pradesh — to anchor defence manufacturing ecosystems.
Static Topic Bridges
Defence Acquisition Procedure (DAP) 2020 — Indigenisation Framework
The Defence Acquisition Procedure (DAP) 2020 replaced the earlier DPP (Defence Procurement Procedure) 2016 and represents India's most comprehensive push toward defence self-reliance. It introduced the "Aatmanirbhar" categorisation hierarchy that prioritises domestic procurement above all else.
- Buy (Indian-IDDM): Indigenously Designed, Developed and Manufactured — highest priority; minimum 50% indigenous content
- Buy (Indian): Minimum 60% indigenous content from Indian vendors
- Buy & Make (Indian): Transfer of technology (ToT) with Indian partner manufacturing
- Buy (Global-Manufacture in India): Foreign Original Equipment Manufacturer (OEM) must manufacture 50% in India
- Buy (Global): Outright purchase from foreign vendors — lowest priority
- The DAP 2020 also introduced leasing as a procurement option and provisions for long-term indigenous development contracts
- The DAC (Defence Acquisition Council), chaired by the Defence Minister, is the apex decision-making body for procurement
Connection to this news: The 9.3% decline in imports and the 75% domestic capex reservation are direct outcomes of the DAP 2020 framework pushing procurement decisively toward domestic sources.
iDEX — Innovations for Defence Excellence
iDEX (Innovations for Defence Excellence) was launched in 2018 under the Department of Defence Production (DDP), Ministry of Defence. It is a startup and MSME-focused innovation ecosystem that funds, mentors, and procures solutions for defence and aerospace challenges through a competitive challenge mechanism.
- As of February 2025: 549 problem statements opened, 619 startups and MSMEs involved, 430 iDEX contracts signed
- iDEX provides non-dilutive grants of up to ₹1.5 crore per startup for early-stage development, scaling to ₹10 crore+ for advanced development
- Operates under the DISC (Defence India Startup Challenge) framework; DISC rounds have addressed problems from naval radars to drone swarm technology
- iDEX winners receive direct procurement pathways, circumventing the longer DAP process
- Complemented by the Technology Development Fund (TDF) for SMEs and academia
Connection to this news: iDEX represents the supply-side mechanism converting India's rising defence capex into domestic innovation, directly supporting the decline in import dependence documented in the SIPRI data.
SIPRI Arms Trade Data and India's Strategic Import Diversification
The Stockholm International Peace Research Institute (SIPRI) is the authoritative source on global arms transfers, publishing its Arms Transfers Database annually. SIPRI uses Trend Indicator Values (TIVs) — a standardised measure of military capability, not financial cost — to compare arms trade across countries.
- India was the world's second-largest arms importer in 2020–24 (after Ukraine), with an 8.3% global share
- Russia's share of India's arms imports: 72% (2010–14) → 55% (2015–19) → 38% (2020–24) — a structural decline reflecting both indigenisation and geopolitical supply risk diversification
- France now accounts for ~28% of India's arms imports (Rafale jets being the primary driver); Israel accounts for 34% of Israel's total arms exports — India is Israel's largest arms customer
- Defence exports: India reached ₹23,622 crore in FY 2024-25; target is ₹50,000 crore by 2030
- India did not feature in the top 25 global arms exporters during 2020–24, indicating exports are still nascent despite growth
Connection to this news: The SIPRI 2025 data release is the statistical foundation for the article's claims about rising capex and falling imports — understanding TIV methodology and India's import diversification is essential for Prelims MCQs and Mains analysis.
Defence Industrial Corridors — Make in India in Defence
The two Defence Industrial Corridors (DICs) were announced in 2018 under the Make in India initiative: 1. Uttar Pradesh DIC: Covering Agra, Aligarh, Lucknow, Kanpur, Jhansi, and Chitrakoot 2. Tamil Nadu DIC: Covering Chennai, Coimbatore, Hosur, Salem, and Tiruchirappalli
- Investment target: ₹20,000 crore per corridor; Tamil Nadu DIC has attracted ₹10,000+ crore in commitments
- Key industries clustering: aerospace components, electronics, small arms, missiles, ammunition
- Major anchor tenants include Hindustan Aeronautics Limited (HAL), DRDO units, and private firms like L&T, Bharat Forge, and Tata Advanced Systems
- Defence production value grew from ₹46,429 crore (FY 2014-15) to ₹1,50,590 crore (FY 2024-25) — a 224% increase in a decade
Connection to this news: The DICs are the physical infrastructure backbone of India's rising defence capex and falling imports — they anchor the domestic industrial capacity that makes indigenisation possible.
Key Facts & Data
- India's arms imports: declined 9.3% in 2020–24 vs. 2015–19 (SIPRI)
- India's global arms import rank: 2nd (2020–24), with 8.3% global share
- Russia's share in India's imports: 38% in 2020–24 (down from 72% in 2010–14)
- France's share: ~28% (2020–24); Israel's share: growing
- Defence exports FY 2024-25: ₹23,622 crore; target by 2030: ₹50,000 crore
- Domestic capex reservation: 75% of capital procurement budget
- Defence production value FY 2024-25: ₹1,50,590 crore (up from ₹46,429 crore in FY 2014-15)
- iDEX contracts signed (as of Feb 2025): 430
- Defence Industrial Corridors: UP and Tamil Nadu