With domestic defense production at record levels, India remains committed to the Defense Industrial Corridor model, with corridors in and around the states of Tamil Nadu and Uttar Pradesh focused on high-tech projects such as uncrewed aerial systems (UAS), electronic warfare and electro-optics.
Rising output meets the needs of the Indian Armed Forces and promotes supply chain resilience as the country becomes a leading defense exporter.
Defense production topped $15 billion in fiscal year 2023-24, an annual increase of 16.7% and a 60% rise since 2019-20, India’s Ministry of Defence (MOD) reported.
Government-led initiatives are fueling the growth, typically by promoting public-private partnerships. To boost the defense and aerospace sectors in the Defense Industrial Corridors, seven testing facilities have been approved — four in Tamil Nadu and three in Uttar Pradesh — under the Defence Testing Infrastructure Scheme (DTIS).
The first center, specializing in UAS projects, will open in the Tamil Nadu corridor under an agreement signed in July 2024. It will be operated by a consortium including state-owned defense firm Keltron and several private defense firms. Indian defense giants Bharat Electronics Ltd. and India Optel Ltd. will be the primary partners for the electronic warfare and electro-optical testing centers, respectively. Those facilities also are planned for the Tamil Nadu corridor.
Launched in 2020 with a budget of about $48 million, the DTIS offers up to 75% government funding for the centers, with the remainder provided by partners.
“Upon the completion of the project, they will provide advanced testing equipment and services to both government and private industry,” the MOD stated.
The initiatives are expected to boost India’s strategy to assume a larger role in the global economy, while enhancing efficiency and competitiveness. Investment also is planned to drive development of advanced combat technologies and a more self-reliant defense sector, the Federation of Indian Chambers of Commerce & Industry (FICCI) reported in mid-2024.
New Delhi has earmarked $20.7 billion for defense force modernization and infrastructure development in its interim budget for 2024-25, the MOD reported. The Defense Industrial Corridors aim to support military modernization and counter threats to national security with technologies including missiles, armored vehicles, artificial intelligence and machine learning, and naval, radar and space-based systems.
“These corridors will allow India to be a reliable, all-weather, and economical defense manufacturer for the world,” the FICCI reported.
Also, New Delhi has established the Export Promotion Council and the India Defence Mart. The council seeks to boost exports by streamlining processes, offering financial incentives and fostering international partnerships. The India Defence Mart is an online portal for companies to apply for and track export licenses. The process for obtaining certification from export agencies has been further streamlined to facilitate defense equipment and technology sales.
“About 100 Indian defence companies have exported arms to over 85 countries,” the FICCI stated. “Some of the major platforms India exported include Dornier-228 [utility aircraft], 155 mm Advanced Towed Artillery Guns, Brahmos Missiles, and various other sophisticated defence systems.”
