Key Points
- India shifting defence focus from assembly to indigenous IP ownership
- Domestic defence industry output reached ₹1.8 lakh crore last financial year
- Maharashtra council to finalise defence manufacturing charter by March 2027
India’s defence manufacturing strategy must transition from assembly-based production to indigenous technology ownership, with the government now prioritising domestic intellectual property over technology transfers from foreign partners, General Manoj Pande, former Chief of the Army Staff, said on Friday (6 November).
Speaking at the first stakeholders meeting of the ASSOCHAM Maharashtra Aerospace and Defence Council, Pande said the country’s defence priorities had evolved significantly. The focus is clearly shifting from ‘Make in India’ to ‘Owned by India’, he said, referring to the need to develop homegrown technologies and subsystems rather than relying on foreign expertise.
“People have realised that it is no longer enough to get a transfer of technology from outside and simply assemble things here. You need to have your own IP in technologies and subsystems. I think that is where the government wants to move,” Pande said.
Defence manufacturing growth
The domestic defence industry recorded an output of ₹1.8 lakh crore in the last financial year, according to Arun Ramchandrani, senior vice president and head of L&T Precision Engineering and Systems, who is also president of the Society of Indian Defence Manufacturers (SIDM).
“We are seeing regular growth and a large thrust on self-reliance and domestic product development, so there is huge evolution,” Ramchandrani said at the meeting, which brought together industry leaders, defence sector representatives and other stakeholders to discuss opportunities in aerospace and defence manufacturing.
Milind Hardikar, chairman, ASSOCHAM Maharashtra State Council, said the sector’s future would depend on design and development capabilities rather than manufacturing capacity alone. “The future will be shaped not just by manufacturing capacities, but it will be increasingly dependent on ability to design a product, develop, manufacture and continuously upgrade advanced technologies and systems,” he said.
Saurabh Sanyal, secretary general of ASSOCHAM, speaking virtually, said Maharashtra was well positioned to contribute to indigenous defence development given its industrial base, engineering capabilities and skilled workforce. “Our focus therefore must now be to move beyond import substitution towards indigenous design, technology development, manufacturing, innovation and exports,” he said.
Participants at the meeting highlighted several challenges facing the sector, including high production costs, limited flexibility in design modifications, delayed payment cycles, working capital constraints and difficulties in accessing institutional finance. The availability and retention of skilled manpower emerged as a concern, with suggestions to explore structured skilling initiatives.
The discussions covered opportunities in specialised alloys, submarine components, stealth technologies, aerospace engineering, maintenance repair and overhaul services, and dual-use technologies. Participants called for stronger interaction between industry, the armed forces and government to understand operational requirements and improve procurement processes.
By the numbers
Key figures from this story- ₹1.8 lakh crore
- Domestic defence industry output last financial year
- March 2027
- Target date for finalising council charter
- April 2027
- Planned implementation start date
A proposal for a dedicated testing and validation facility in Maharashtra emerged during the discussions. Sanjay Chakraborty, vice president and head of corporate centre at L&T Precision Engineering and Systems and chairman of the ASSOCHAM Maharashtra Aerospace and Defence Committee, said the aim was to build an ecosystem greater than the sum of its parts.
The council proposed a structured approach with dedicated working groups and member-led initiatives. The roadmap envisages consolidating priorities over the coming months, finalising the charter and working group structures by March 2027, and commencing implementation from April 2027.
Perminder Jeet Kaur, head of states and union territories at ASSOCHAM, suggested exploring learnings from IIT Kanpur’s proposed technology sandbox for drones and aerospace to support development of a similar facility in Maharashtra. The meeting also proposed integrating banking and financial institutions into the council’s engagement framework to address working capital and finance concerns.
Your Questions, Answered
What is the shift from Make in India to Owned by India in defence?
The government is moving beyond assembly-based production using foreign technology transfers towards developing indigenous intellectual property, technologies and subsystems for defence equipment.
What is the current size of India's domestic defence industry?
The domestic defence industry recorded an output of ₹1.8 lakh crore in the last financial year, according to SIDM president Arun Ramchandrani.
What challenges does India's defence manufacturing sector face?
Key challenges include high production costs, limited design flexibility, delayed payment cycles, working capital constraints, difficulty accessing finance, and skilled manpower retention.
What is the proposed timeline for the ASSOCHAM Maharashtra defence council?
The roadmap proposes consolidating priorities in coming months, finalising the charter and working group structures by March 2027, and beginning implementation from April 2027.




