Indian Council of World Affairs

Abstract : The Aero India event showcases India’s defence capability, especially in the air defence sector, through innovations like iDEX and Akashteer. This article delves into how India is building partnerships through its defence exports and private manufacturing efforts to strengthen its role as an emerging defence supplier through strategic reforms and defence diplomacy programmes. 

Introduction 

The Aero India 2025 will take place at Yelahanka Air Force Station in Bangalore from 10 to 14 February, a hallmark event in India’s aerospace domain. This 15^th edition of “The Runway to a Billion Opportunities”[i]strives to do better by marketing new partnerships and increasing the pace of indigenisation. The event includes the Defence Ministers’ Conclave that will be themed “BRIDGE — Building Resilience through International Defence and Global Engagement,” the CEOs “Round Table,” iDEX start-up event, live and dynamic aerobatics and air show and a massive exhibition area with over 200 exhibit providers aimed towards displaying Indian indigenous defence manufacturing.[ii] The exhibition could help create technology transfer agreements of over ₹75,000 crores to propel India’s aerospace technology and exports. Acting as a bridge between India and other international defence organisations, Aero India 2025 will strive to improve the local avionics industrial development, as well as innovation, and thereby assimilate Indian organisations into the global production channel. 

The innovations, such as the iDEX pavilion for start-ups and MSMEs, demonstrate the intention of supporting indigenous innovation to encourage investment in local manufacturing. Possible signs of India’s defence autonomy in the air defence sector can be highlighted through the integration of the Akashteer system, an automatic air defence control and reporting system developed by Bharat Electronics Limited, which provides improved support to the Indian Army through the networking of surveillance systems, radars and communication equipment. The commencement of the manufacturing of the country’s first private military aircraft in Vadodara, Gujarat, by Tata Advanced System Ltd.’s joint venture with Airbus Spain[iii] takes on a new dimension in the country’s aircraft production. In addition, the involvement of seven Indian start-ups in the space and defence collaborative Indo-US programme shows the increasing importance of private players in developing defence innovations.[iv]

Towards Defence Autonomy

Government policies, such as the “Make in India” and the “Atmanirbhar Bharat", have greatly enhanced India's capability to be self-reliant in defence, especially in the air defence market. The intended goals and objectives of these policies are to cut down the reliance on foreign imports and to encourage domestic production by making relations between Indian firms and international entities easier. The production of the C-295 military transport planes in Vadodara, Gujarat for example, is a result of India’s ambitious “Make in India” campaign and a cornerstone towards achieving defence autonomy. This partnership has enabled setting up of the first private military aircraft manufacturing plant in India, an aspect deemed to have brought a new paradigm shift within the indigenous aerospace production industry.[v]

However, obstacles continue to exist even when such development has been achieved. Per the news platform National Herald, the Indian defence sector has primarily depended upon state-owned companies like Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL) and Mazagon Dock Shipbuilders, but these companies have to work seamlessly to attain its goal timely.[vi] While the public sectors continue to dominate, there is a need to fill the gap by private firms. Larsen & Toubro’s chief financial officer, R. Shankar Raman, stated, “There was a need to move towards domestic private players for sourcing defence requirements in India.”[vii]

Moreover, India’s reliance on imports for most of its defence equipment has been exposed to certain issues, and this situation brings out the need for India to indigenously design and produce air defence systems for its strategic security. As a solution there is a need for a comprehensive policy framework with policy reforms of defence manufacturing policies, private sector participation and technology strategy to create a defence-autonomous nation, with programmes like “Make in India” and “Atmanirbhar Bharat” having started the path of setting up a defence-autonomous nation, especially in the aerospace and defence sector. 

India as a Major Defence Exporter 

India’s rise as a key defence exporter to countries like Armenia and the Philippines has been possible because of policy measures favouring exports of the defence systems produced in India. The defence exports stood at around $2.6 billion in FY 2023–24, up from $241 million in FY 2014–15, of which it surpassed $2.44 billion.[viii] This growth was due to India’s determination to advance its defence manufacturing capacities and increase its marketing and exporting of indigenous defence systems. This growth reflects India’s commitment to bolstering its defence manufacturing capabilities and expanding its global footprint. One is in the defence sector, where India shares a defence partnership with Armenia. In 2022, Armenia purchased 15 Akash air defence systems that cost around $720 million.[ix] India handed over the first battery of the Akash Weapon System to Armenia by November 2024 to signal a new era in defence cooperation. Armenia has also purchased Indian-origin 155mm calibre artillery guns along with a Pinaka multi-barrel rocket system to enhance its defence force.[x]

In Southeast Asia, the Philippines has turned into a major player in importing Indian defence equipment. In August, for the first time, the Philippines bought a $375-million BrahMos anti-ship missile system from India.[xi] This deal reflects India’s potential to develop missile technology that can be exported and offered to other countries as strengtheners of their defence. India has several approaches to ensuring that defence exports assist Global South countries. By offering inexpensive and efficient native defence solutions, India helps these countries strengthen their defence systems with less dependence on conventional Western vendors. Besides, it helps in the enhancement of the bilateral partnership as well as regional security.

However, while India is celebrating the rising export of 78% in the first quarter of 2024–25,[xii] at the same time the country is still away from achieving the Rs 35,000 crore defence export target for the year 2025. To bridge the gap, India must continue to innovate, ensure quality standards and navigate the complex geopolitical landscape that influences defence trade. The success of India as a defence exporter to different nations can be seen as the growth of the defence manufacturing industries and a vigorous foreign policy. With indigenous source systems like the Akash air defence system and the BrahMos missile, India not only supports the betterment of the defence capabilities of partner countries but at the same time strengthens its place as one of the responsible and trustworthy defence partners.

Strengthening Defence Diplomacy

India’s defence diplomacy, from being a means to export defence equipment, has expanded into a process facilitating strategic partnerships and cooperation. First, the strategy improves India’s stakes in different region of the world and gives it a role in impacting geopolitics. The selection of seven Indian startups for the Indo-US space and defence cooperation programme firms, such as KaleidEO and EtherealX likely to operate satellite observation and other enhanced defence technologies, can create expansive markets and immense revenue.[xiii]

India’s defence diplomacy reflects the cultivation of strategic partners across the globe. India and Nigeria have vowed to improve cooperation on maritime security and counterterrorism in West Africa. Globally, India has deepened defence and security relations with Southeast Asian nations focusing on maritime-security issues with ASEAN members. India’s weapon deals with nations, such as Vietnam, are also a strategic approach towards regional behaviour, primarily due to China.[xiv]

Despite the foregoing achievements in defence diplomacy, there are challenges in India’s system. To sustain and grow defence exports, changes and improvements are indispensably continuous with a keen focus on international standards. There are signs that are good, like the $5 billion submarine deal with Germany’s Thyssenkrupp.[xv] However, the challenges have to do with production and maintaining successful partnerships on the international arena for such growth trends to be achieved.

Way Forward

Indian public sector involvement with the private sector needs expansion through government policies that limit business barriers for homegrown companies, like the Tata-Airbus joint venture in Gujarat for C-295 aircraft manufacturing. The effort represents a major advance that must extend to all defence sector projects across India. Public-private partnership models benefit efficiency while reducing dependence on state-owned firms like HAL. The iDEX programme needs faster implementation to facilitate MSMEs and start-ups developing domestic defence technologies. Bharat Electronics Limited demonstrates innovation with the Akashteer air defence system that combines surveillance and communication operations to reduce India’s dependence on imports. The Indian defence industry could maintain export growth through BrahMos missile and Akash air defence system marketing efforts demonstrated by the Philippine and Armenian agreements. These strategic partnerships promote India’s trading performance and increase its regional power status. Through partnerships with different nations and members of ASEAN, India should aim to facilitate maritime security while countering terrorism. Through space-defence initiatives with the US, India proves its expanding role in developing critical strategic technologies. India can bridge production capability gaps, especially in naval warship building, through international standards adoption alongside technological progress, like the submarine project with Germany’s Thyssenkrupp, which demonstrates how to scale up domestic manufacturing capacity.

Conclusion

Aero India represents India’s progress on the path to “Make in India” — defence, especially in aerospace through technology, originality and international collaboration. Organised by indigenous systems like the Akashteer air defence network and the Tata Airbus C-295 manufacturing plant, the event proves the effectiveness of concepts like “Make in India” and “Atmanirbhar Bharat.” These policies have supported domestic manufacturing, reinforced exports and driven the productive change of the aerospace industry. Nevertheless, some challenges still exist, such as import dependency, inefficiencies in state-owned enterprises and competition with world powers. To mitigate these, there is a need for policy reforms, private sector participation and improvement of manufacturing capabilities. Also, strategic defence diplomacy should speak to the current and emerging standards of diplomatic measures and the global political map. Aero India 2025 could provide a strategic direction to transform India into a defence manufacturing hub that encourages innovative indigenisation.

*****

*Lipun kumar Sanbad, Research Intern, Indian Council of World Affairs, New Delhi
Disclaimer: Views expressed are personal. 

Endnotes

[i] “Raksha Mantri Shri Rajnath Singh to Chair Ambassadors’ Round-Table in New Delhi in the Run up to Aero India 2025,” published on January 9, 2025. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2091447.

[ii] “The Runway to a Billion Opportunities: Aero India 2025 to Be Held in Bengaluru From February 10 to 14,” published on January 6, 2025. https://pib.gov.in/PressReleseDetail.aspx?PRID=2090516®=3&lang=1.

[iii] Airbus. “Tata Advanced Systems and Airbus Inaugurate C295 Final Assembly Line in Vadodara, India.” Airbus, October 28, 2024. https://www.airbus.com/en/newsroom/press-releases/2024-10-tata-advanced-systems-and-airbus-inaugurate-c295-final-assembly-line-vadodara-india.

[iv] . Bhattacharjee, Nivedita. “Exclusive: First Indian startups picked for Indo-US defence programme, investor says.” Reuters, January 17, 2025. https://www.reuters.com/technology/space/first-indian-space-startups-picked-indo-us-defence-programme-sources-say-2025-01-17/

[v] Peri, Dinakar. “Airbus, Tata Team up to Set up India’s First Private Helicopter Assembly Line,” January 26, 2024. https://www.thehindu.com/news/national/airbus-tata-team-up-to-set-up-indias-first-private-helicopter-assembly-line/article67779870.ece/amp/.

[vi] Singh, Bhasha. “Modi Government Itself Ruined 1000 Defence Manufacturing Companies.” National Herald, November 17, 2018. https://www.nationalheraldindia.com/amp/story/india/modi-government-itself-ruined-100-defence-manufacturing-companies.

[vii] Kay, Chris. “India Must Use Private Defence Suppliers More, Says Larsen & Toubro.” Financial Times, July 29, 2024. https://www.ft.com/content/be15e505-e551-4af5-ad13-4ccf91e34f42.

[viii] “Defence Exports Touch Record Rs 21,083 Crore in FY 2023-24, an Increase of 32.5% Over Last Fiscal; Private Sector Contributes 60%, DPSUs - 40%,” April 01, 2024. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2016818.

[ix] Triffaux. “Armenia Receives New Indian-Made Akash Surface-to-Air Defense System,” November 12, 2024. https://armyrecognition.com/news/army-news/army-news-2024/armenia-receives-new-indian-made-akash-surface-to-air-defense-system.

[x] Moneycontrol. “Boost for Make in India: Armenia Orders Artillery Guns Developed Jointly by India and France.” January 16, 2025. https://www.moneycontrol.com/news/india/boost-for-make-in-india-armenia-orders-artillery-guns-developed-jointly-by-india-and-france-12912039.html/amp.

[xi] Jazeera, Al. “Philippines to Acquire Missile System from India for $375m.” Al Jazeera, January 15, 2022. https://www.aljazeera.com/amp/news/2022/1/15/philippines-to-acquire-missile-system-from-india-for-375-mln.

[xii] https://m.economictimes.com/news/defence/indias-defence-exports-skyrocket-by-78-in-q1-fy-2024-25-sets-new-benchmarks/amp_articleshow/112469912.cms.

[xiii] Bhattacharjee, Nivedita. “Exclusive: First Indian startups picked for Indo-US defence programme, investor says”. Reuters, January 17, 2025. https://www.reuters.com/technology/space/first-indian-space-startups-picked-indo-us-defence-programme-sources-say-2025-01-17/.

[xiv] Solanki, Viraj. “India’s increased defence and security engagement with Southeast Asia.” IISS, May 1, 2024. https://www.iiss.org/online-analysis/online-analysis/2024/04/indias-increased-defence-and-security-engagement-with-southeast-asia/.

[xv] Reuters. “Germany Looks to Strengthen Defence, Military Ties With India.” Economic Times, October 25, 2024. https://m.economictimes.com/news/defence/germany-looks-to-strengthen-defence-military-ties-with-india/amp_articleshow/114577424.cms.