A recent report published by the Stockholm International Peace Research Institute (SIPRI) indicates that India remained the world's second-largest arms importer during the period of 2017 to 2021. The findings highlight a continued reliance on foreign military equipment, even as India intensifies its ‘Make-in-India’ initiatives aimed at boosting indigenous defense manufacturing and reducing import dependency.

The SIPRI report, which analyzes global arms transfers, positions India just behind Saudi Arabia in terms of the volume of major arms imported over the five-year period. India accounted for 11% of all global arms imports between 2017 and 2021. This figure represents a marginal decrease from the 12% share recorded in the preceding 2012-2016 period, yet it underscores India's significant role in the international arms market and the persistent challenge in achieving complete self-reliance in its defense sector.

India's substantial arms acquisitions are driven by various factors, including the extensive modernization needs of its armed forces and ongoing geopolitical considerations along its borders. Historically, India has been among the top global arms importers for an extended period. The primary suppliers of major arms to India during 2017-2021 included Russia, which accounted for 46% of India’s imports, followed by France at 27%, and the United States at 12%. These figures demonstrate a diversification in sourcing, yet a continued dependence on a few key nations for critical defense technologies and platforms.

The Indian government launched its 'Make-in-India' initiative in 2014, with a strong emphasis on the defense sector. The objective is to transform India into a global manufacturing hub and significantly reduce its import bill, particularly in strategic sectors like defense. Specific measures introduced to achieve this include:

  • Negative Import Lists: The Ministry of Defence has released several "positive indigenization lists" of items that will progressively be banned from import. These lists are designed to provide a clear signal to the domestic industry and encourage local production.
  • Defense Industrial Corridors: Establishment of dedicated defense industrial corridors in Uttar Pradesh and Tamil Nadu to foster a robust ecosystem for defense manufacturing, involving both public and private sector players.
  • Increased Budgetary Allocation for Domestic Procurement: A significant portion of the defense capital acquisition budget is earmarked exclusively for procurement from domestic sources.
  • Foreign Direct Investment (FDI) Policy Liberalization: Efforts to attract foreign investment into the Indian defense manufacturing sector, often requiring technology transfer and local production partnerships.

Despite these policy interventions and a stated goal of achieving 'Atmanirbhar Bharat' (self-reliant India) in defense, the SIPRI report highlights the long gestation periods required for developing advanced defense capabilities domestically. The complexity of modern military systems, coupled with the immediate operational requirements of the armed forces, often necessitates continued imports of sophisticated platforms and weapons systems that cannot yet be produced to scale or required specifications within the country.

The findings from SIPRI indicate that while progress is being made in fostering a domestic defense industry, India’s journey towards complete self-reliance in arms remains an ongoing strategic priority. The government is expected to continue its focus on accelerating indigenous design, development, and manufacturing capabilities, alongside selective imports to meet immediate security requirements and bridge technological gaps. Efforts to reduce the import burden and enhance the export of Indian-made defense products are anticipated to remain central to India's long-term defense strategy.