Building India's Defence Industrial Base: Policy, Investment, and the BDTS Blueprint

Published on : 19

Apr 2026

India's aspiration to transform from the world's largest defence importer into a credible defence exporter by 2025 requires a fundamental reshaping of its defence industrial base. This transformation demands policy clarity, consistent investment, and the kind of industry-government alignment that the Bharat Defence Tech Show has made its central mission to facilitate.

The establishment of two dedicated Defence Industrial Corridors โ€” one in Uttar Pradesh spanning Agra, Aligarh, Lucknow, Kanpur, Jhansi, and Chitrakoot, and one in Tamil Nadu connecting Chennai, Coimbatore, Salem, Hosur, and Tiruchirappalli โ€” represents the most significant structural investment in India's defence industrial capacity since independence. BDTS has hosted dedicated sessions on both corridors, enabling companies to understand the specific infrastructure, incentives, and anchor tenants in each zone that determine investment attractiveness.

BDTS's policy advocacy function is increasingly recognised by the Ministry of Defence. The summit's white papers on defence industrial policy have addressed topics including: the need for a predictable multi-year procurement pipeline to justify private sector capital expenditure; the challenges of intellectual property protection in defence joint ventures; the reform of quality assurance processes that can add years to product development timelines; and the development of a skilled defence industrial workforce through dedicated training programmes.

Foreign direct investment in India's defence sector has grown substantially following the increase of the FDI limit to 74% under the automatic route and 100% with government approval. BDTS has been instrumental in helping global OEMs understand the practical requirements of the FDI framework and identify the right Indian partners for manufacturing joint ventures, particularly in capital-intensive domains like armoured vehicles, aircraft systems, and naval vessels.


๐ŸŒ Website: www.bharatdefencetechshow.com