Vol. 11, Issue 10, Part C (2025)

Abstract
Multiple policy initiatives under Atma Nirbhar Abhiyan are driving defence manufacturing sector through a major transformation with primary aim of reducing India’s historical dependence on imports. This shift is orchestrated through a complex interplay of the DRDO, DPSUs, and rapidly expanding private sector. The MoD’s Defence Acquisition Procedure (DAP) 2020 and the Positive Indigenisation Lists (PILs) serve as foundational policy instruments, aiming to streamline procurement, foster domestic production, and attract investment. While these policies demonstrate a clear commitment to indigenous capabilities, persistent bureaucratic hurdles, challenges in technology absorption, and the need for enhanced R&D investment highlight areas requiring further reforms. The corporatisation of the OFB into seven new DPSUs represents a significant structural change, with early performance indicators suggesting a positive trajectory in efficiency and market responsiveness. The private sector, including MSMEs, is increasingly recognized as a critical driver of innovation and production, yet faces specific hindrances related to level playing field, long-term order visibility, funding access, and intellectual property protection. Achieving true strategic autonomy requires sustained efforts to deepen collaboration, rationalise procurement processes, and significantly boost national R&D expenditure across the entire defence ecosystem.