India seeks to become a manufacturer in the defence sector, says PM Modi

At the commissioning ceremony of three indigenous warships in Kolkata, the constitutional head of government articulated a new national vision: India must tr...

What Happened

At the commissioning ceremony of three indigenous warships in Kolkata, the constitutional head of government articulated a new national vision: India must transition from being a buyer of defence platforms to a manufacturer and exporter of them.
A new national policy vision for the shipbuilding sector was announced, signalling the government's intent to treat shipbuilding as a strategic industry — not merely a defence activity but also an economic one with export potential.
The government has already backed this vision with two financial support schemes worth ₹44,700 crore: the Shipbuilding Financial Assistance Scheme and the Shipbuilding Development Scheme.
India has inducted over 40 indigenously built warships in recent years. Currently, 45 warships are under construction in Indian public-sector shipyards.
The government's stated ambition extends beyond domestic supply: to position India as a major global defence exporter, targeting a defence export figure of ₹50,000 crore by 2029.

Static Topic Bridges

Defence Acquisition Procedure (DAP) and Indigenisation Policy

The Defence Acquisition Procedure (DAP) is the overarching framework governing defence procurement in India. It was last substantially revised in 2020 and replaced the earlier DPP (Defence Procurement Procedure). DAP 2020 prioritises domestic procurement through a tiered category system.

Buy (Indian-IDDM): Highest priority — items Indigenously Designed, Developed, and Manufactured with 50%+ domestic content
Buy (Indian): Items manufactured in India with 50%+ domestic content
Buy and Make (Indian): Transfer of technology followed by domestic production
Make in India: Government-funded development of prototypes by Indian industry
Positive Indigenisation Lists (PIL): Items on these lists cannot be imported after a specified date; 509 items across three lists, covering radar systems, sonar, aeroengines, and small arms
The Strategic Partnership (SP) model allows private Indian firms to partner with foreign OEMs for platforms like submarines and helicopters

Connection to this news: All three warships commissioned — INS Dunagiri, INS Sanshodhak, and INS Agray — fall under Buy (Indian-IDDM) or similar high-indigenisation categories, demonstrating DAP working as intended.

India's Shipbuilding Industrial Base

India's defence shipbuilding rests primarily on three public sector shipyards — GRSE (Kolkata), Mazagon Dock Shipbuilders/MDL (Mumbai), and Cochin Shipyard (Kochi). Each specialises in different vessel types.

GRSE: Frigates, survey vessels, ASW craft, fast patrol vessels; has built 100+ naval vessels; eastern coast location supports Bay of Bengal operations
MDL (Mazagon Dock): Complex destroyers (Visakhapatnam-class), conventional submarines (Scorpène), nuclear submarine support; primary yard for high-end combat vessels
CSL (Cochin Shipyard): India's largest commercial + naval shipyard; building India's first indigenous aircraft carrier INS Vikrant (delivered 2022); also builds coast guard and research vessels
Private sector increasingly involved: L&T Shipbuilding (Kattupalli), Reliance Naval and Engineering
India's commercial shipbuilding share in global market is under 1% — a stark contrast to China's 55%+, South Korea's ~25%, and Japan's ~20%; the new schemes aim to change this

Connection to this news: The commissioning of three warships from GRSE alone — frigate, survey vessel, ASW craft — illustrates the breadth of capability at a single yard, supporting the case for scaling up commercial shipbuilding alongside naval work.

Make in India and Defence Exports

India's defence export programme has grown significantly in the past decade. Defence exports have risen from under ₹1,000 crore in 2016–17 to over ₹21,000 crore in 2023–24, driven by exports of Brahmos (to Philippines), Dornier aircraft, offshore patrol vessels, and ammunition.

India exports defence equipment to over 85 countries
Target: ₹50,000 crore in defence exports by 2029
Key export items: BrahMos missiles, Dornier-228 aircraft (to Guyana, Sri Lanka), OPVs and patrol boats to Mauritius, Sri Lanka, Vietnam, Bangladesh
Defence export promotion is handled by the Defence Export Promotion Scheme (DEPS)
In 2023, India secured its first BrahMos missile export deal — to the Philippines — worth approximately $375 million
MSMEs and private companies constitute a growing share: over 200 MSMEs contribute to Mazagon Dock's warship supply chains alone

Connection to this news: The ceremony was explicitly framed as a dual announcement — maritime security and economic opportunity. Building for export is now an official government objective, with GRSE and MDL as the designated production anchors.

Maritime Economy and Exclusive Economic Zone (EEZ)

India's Exclusive Economic Zone extends 200 nautical miles from its coastline, covering approximately 2.37 million sq km — one of the largest EEZs in the world. Controlling and exploiting this maritime zone requires a capable naval and coast guard presence.

India's coastline: 7,516 km; 9 coastal states + 4 Union Territories; 1,382 islands
EEZ resources: fishing (4.2 million tonnes potential), offshore oil and gas (Mumbai High, KG Basin), minerals, deep-sea polymetallic nodules
Blue Economy: India's maritime sector contributes ~4% of GDP; potential for 10%+ with investment in ports, shipping, and shipbuilding
The Sagarmala programme (Ministry of Ports, Shipping, and Waterways) aims at port-led industrialisation and coastal shipping development
Merchant shipbuilding is categorised separately from naval shipbuilding but shares the same industrial base; growing commercial orders increase yard capacity and reduce unit costs

Connection to this news: The announced new vision for shipbuilding explicitly covers both warship production and commercial maritime development — linking national security with blue economy growth.

Key Facts & Data

Government shipbuilding schemes: ₹44,700 crore combined — Shipbuilding Financial Assistance Scheme + Shipbuilding Development Scheme
45 warships currently under construction in India; 19 planned for 2026 induction; 13 for 2027
India's indigenisation levels (2026): Float 90%, Move 60%, Fight 50%
Defence exports: ₹21,000+ crore in 2023–24 (up from <₹1,000 crore in 2016–17); target ₹50,000 crore by 2029
India exports defence equipment to 85+ countries
India's three major defence shipyards: GRSE (Kolkata), MDL (Mumbai), CSL (Kochi)
India's commercial shipbuilding share: <1% of global market; China: ~55%
India's EEZ: 2.37 million sq km; coastline: 7,516 km
BrahMos missile: first foreign sale to Philippines (~$375 million deal); Mach 3 speed; 500 km range
Project 17A: 7 frigates total; 5th (Dunagiri) commissioned June 2026; 6th (Mahendragiri) delivered April 2026