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Indigenous Technology Development and Make in India: Building Instead of Buying

For decades, India bought much of its high-tech kit from abroad. Phones, medicines and fighter jets all leaned on imports. Since 2014, the government has pushed to make more of these things at home. This lesson explains the four main schemes behind that push. It then shows how far defence manufacturing has come, with the record 2025-26 numbers.

Building instead of buying, at a glance

Four schemes, from factories to fighter jets

01

2014

Make in India launched, for all manufacturing.

02

14 sectors

Covered by the PLI Scheme, which pays for extra output.

03

₹1.78 lakh crore

India’s record defence production in 2025-26.

04

₹38,424 crore

Record defence exports in 2025-26.

HAL Tejas light combat aircraft at Aero India 2009
HAL Tejas, India’s home-built light combat aircraft, at Aero India 2009. Photo: Rahuldevnath, CC BY 3.0.
IndigenousMade in India, with Indian design and parts as far as possible.
Import dependenceRelying on other countries for goods you cannot make yourself.
IncentiveA reward, often money, to get companies to do something.
Transfer of TechnologyWhen one body hands its know-how to another so it can make the product.

Why does India want to make its own technology?

Must Know

Think of a family that buys every meal from outside. It works, until the shop shuts. A country that imports its key goods faces the same risk.

  • India long imported much of its electronics, medicine inputs and weapons.
  • Imports cost foreign money. They also leave a country exposed if supplies stop.
  • In 2020, COVID-19 lockdowns broke global supply chains. Many Indian factories could not get parts, especially from China.
  • That shock turned self-reliance from an economic wish into a strategic goal.
  • Making goods at home also creates jobs. And it can earn money through exports.

Q1. True or False: India’s self-reliance push gained urgency after COVID-19 lockdowns broke global supply chains.

What are the four big schemes?

Must Know
Four schemes, one direction 2014 Make in IndiaAll manufacturing,25 sectors 2018 iDEXGrants for defencestart-ups 2020 PLI SchemePay for extra output,later 14 sectors May 2020 AtmanirbharSelf-reliance asa national goal Broad first (all factories), then narrow (key sectors, defence).
Make in India cast a wide net. Later schemes picked targets.

Make in India (2014)

  • Launched on 25 September 2014.
  • Its aim was to make India a global hub for manufacturing and innovation, across 25 sectors.
  • Its goals included 12-14% yearly growth in manufacturing. It also aimed to lift manufacturing toward 25% of GDP.
  • Its logo is a lion made of machine cogs. The lion comes from the Ashoka emblem.

iDEX (2018)

  • iDEX means Innovations for Defence Excellence. It was launched in April 2018.
  • It is run by the Defence Innovation Organisation.
  • It gives start-ups and MSMEs grants of up to ₹1.5 crore to solve problems set by the forces.
  • A higher tier, iDEX Prime, gives up to ₹10 crore for bigger projects.

PLI Scheme (2020)

  • The first PLI schemes, for mobile phones and medicine inputs, began in 2020.
  • They were later widened to 14 sectors. About ₹1.97 lakh crore was announced for them in 2021.
  • PIB now gives the approved outlay as ₹1.91 lakh crore.

Atmanirbhar Bharat (2020)

  • It means “Self-Reliant India”. It was announced on 12 May 2020, during COVID-19.
  • It came with a ₹20 lakh crore package, about 10% of GDP then.
  • It rests on five pillars: Economy, Infrastructure, System, Demography and Demand.

Q2. True or False: iDEX, which funds defence start-ups, was launched in 2021.

How does PLI pay companies?

Must Know

Old subsidies often paid companies up front. Some took the money and made little. PLI flips this.

  • PLI pays a company a percentage of its extra sales over a base year.
  • So the company must first make and sell more. Only then does it get paid.
  • The payment runs for about five years. The rate differs from sector to sector.
  • Sectors include mobile phones, medicines, medical devices, solar modules and advanced batteries.
  • The Department for Promotion of Industry and Internal Trade (DPIIT) coordinates all PLI schemes.

What has PLI delivered so far?

  • By 31 March 2026, PLI had drawn over ₹2.40 lakh crore of real investment.
  • It had created over 14.15 lakh jobs, direct and indirect.
  • Exports from PLI units crossed ₹15.2 lakh crore since the start.
  • About 99.2% of mobile phones used in India are now made in India.

(Source: PIB, 21 July 2026)

Think it through, before reading on. Why might paying for output work better than paying for promises?

Show the explanation

A promise costs nothing to make. A company could promise a big factory, take the money, and build a small one. Under PLI, the money comes only after the goods are made and sold. So the government pays only for results it can count.

Q3. True or False: Under PLI, companies get their incentive before they raise production.

How far has defence manufacturing come?

Good to Know

Defence is where self-reliance matters most. In a war, you cannot wait for a foreign supplier.

India’s defence output and exports Production (₹ crore) 201446,000 2025-261,78,000 Exports (₹ crore) 2013-14686 2025-2638,424 2029 goal50,000 Production and export bars use separate scales. Source: Defence Minister, 14 Aug 2026.
Production grew almost four times. Exports grew over 50 times.
  • Defence production rose from ₹46,000 crore in 2014 to ₹1.78 lakh crore in 2025-26.
  • Defence exports rose from ₹686 crore in 2013-14 to ₹38,424 crore in 2025-26.
  • India now has 145 defence exporters. They sell to more than 80 countries.
  • On 17 October 2025, HAL opened its third Tejas Mk1A line, at Nashik. HAL can now make 24 of these jets a year.

Q4. True or False: Defence production in India rose about four times between 2014 and 2025-26.

How is DRDO opening up to industry?

Good to Know

DRDO is India’s main defence research body. For years, it built things itself. Now it is sharing its work with private firms.

  • DRDO has handed over 2,300+ technologies to more than 1,100 industries.
  • These include technology for about 50 missiles.
  • The government plans to give 25% of the defence R&D budget to private industry.
  • In June 2026, new financial powers for DRDO (DFP-2026) let it fund trials and early research faster. (PIB)
  • In September 2026, at the VIMARSH meet, DRDO said it will share its software source code with licensed firms. (PIB)
  • The same meet offered MSMEs and deep-tech start-ups direct funding and use of DRDO test labs.

Q5. True or False: The government plans to allocate 25% of the defence R&D budget to private industry.

Remember this: Make in India 2014 (25 sectors). iDEX 2018 (DIO, ₹1.5 crore grants). PLI 2020 (14 sectors, pays for extra sales). Atmanirbhar May 2020 (₹20 lakh crore, five pillars). Defence 2025-26: production ₹1.78 lakh crore, exports ₹38,424 crore.

Exam Angle

How do exams test these schemes?

  • CDS-II 2019, Q35 said Make in India was launched in 2018. Wrong. It was 2014. Its aim to foster innovation was right.
  • CAPF ACS 2026, Q16 asked about PLI. The key accepted only the statement on incentives for extra sales. The 25%-of-GDP target is not a PLI goal.
  • CDS-II 2024, Q96 asked what Atmanirbhar Bharat does. Both statements were correct: it boosts manufacturing and exports, and it draws foreign investment.
  • Trap 1: self-reliance does not mean no foreign money. Atmanirbhar Bharat welcomes foreign investment in Indian factories.
  • Trap 2: PLI rewards output, not investment alone.

What did the 2025-26 defence numbers show?

Current Affairs

Record production and exports (14 August 2026)

  • Defence Minister Rajnath Singh shared the data on the eve of the 80th Independence Day.
  • Defence production hit a record ₹1.78 lakh crore in 2025-26.
  • Public sector units made about 76% of it. The private sector’s share rose to 24%.
  • Exports hit a record ₹38,424 crore. The target is ₹50,000 crore by 2029.
  • The defence budget grew from ₹2.53 lakh crore in 2013-14 to ₹7.85 lakh crore in 2026-27.

(Source: The Hindu)

Other recent steps

  • 3 Jul 2026: the Defence Acquisition Council cleared buys worth about ₹52,000 crore. The Army gets Akash Tarang, an anti-drone electronic warfare system. The Air Force gets a fixed-wing High Altitude Pseudo Satellite for long-duration surveillance. (Akashvani News)
  • 2 Sep 2026: the IAF drop-tested Khagantak-243, a home-made long-range glide bomb. It lets a jet strike from a safe distance. (The Hindu)
  • 7 Sep 2026: the Defence Acquisition Council, chaired by the Defence Minister, cleared buys worth about ₹1.10 lakh crore. About 98% will come from Indian industry. (PIB)

Q6. True or False: The private sector made most of India’s defence production in 2025-26.

Quick Q&A

When was Make in India launched?

25 September 2014.

How many sectors does the PLI Scheme cover?

14.

Which body runs iDEX?

The Defence Innovation Organisation.

What were India’s defence exports in 2025-26?

A record ₹38,424 crore.

What is the defence export target for 2029?

₹50,000 crore.

MCQ on Make in India and Defence Indigenisation

Try 8 practice questions on self-reliance schemes and defence.

Question 1 of 1

In which year was the Make in India initiative launched, aiming to build a global manufacturing hub across 25 sectors?

Question 1 of 1

The Production Linked Incentive (PLI) Scheme, launched in March 2020, ties financial incentives to which factor?

Question 1 of 1

The Atmanirbhar Bharat (Self-Reliant India) initiative was launched in 2020 in response to what event?

Question 1 of 1

The Production-Linked Incentive (PLI) Scheme, a key implementation tool for Atmanirbhar Bharat, pays companies based on what?

Question 1 of 1

What was India’s record defence export figure for 2025-26?

Question 1 of 1

Per Rajnath Singh’s July 2026 statement, India’s annual defence production reached about how much in FY 2025-26, and what is the target for 2029?

Question 1 of 1

On 17 October 2025, Defence Minister Rajnath Singh flagged off the first Tejas Mk1A from which new HAL production line?

Question 1 of 1

Khagantak-243, tested by the Indian Air Force in September 2026, is a:
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