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India-Made vs Leased Defence Hardware

Not every piece of Indian military hardware is actually built in India. Some are license-manufactured at home, using foreign designs. Others are simply bought or leased outright, and never touch an Indian factory floor. Knowing which is which is a favourite UPSC trap.

Indian Air Force Su-30MKI fighter jet
An Indian Air Force Su-30MKI, license-built by HAL at Nashik. Photo: wallycacsabre / Wikimedia Commons, CC BY 2.0.
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Built in India, or Just Leased?
Three pieces of hardware, sorted by origin
Su-30 MKILicense-built by HAL, Nashik. 50%+ domestic content.
MADE IN INDIA
T-90 MK-IIIAssembled at HVF Avadi. 90%+ domestic content.
MADE IN INDIA
Akula-Class SubmarineBuilt in Russia (Vostok Shipyard), leased to India.
LEASED, NOT BUILT
The trap: “operated by India” is not the same as “manufactured in India.” INS Chakra flies the Indian flag, but it was never built on Indian soil.
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📑 Contents

Timeline

  • 2000: India and Russia sign the “deep license” deal for domestic Su-30 MKI production.
  • 2001: India and Russia sign the agreement for licensed T-90 tank production.
  • 2005: The first India-built Su-30 MKI is inducted, assembled at HAL’s Nashik division.
  • 2009: The first India-assembled T-90 tank is completed at Heavy Vehicles Factory, Avadi.
  • 2019: India signs a $3 billion deal to lease a Russian Akula-class nuclear submarine, later commissioned as INS Chakra.
  • May 2026: The 1,000th T-90 tank rolls out from Heavy Vehicles Factory, Avadi.
🏛️ Must Know
Made in India vs Leased from Russia
  • The Su-30 MKI The Su-30 MKI fighter jet is license-built in India by Hindustan Aeronautics Limited, or HAL, at its Nashik (Ozhar) division.
  • The T-90 MK-III The T-90 MK-III “Bhishma” tank is also made in India, assembled at the Heavy Vehicles Factory in Avadi, Tamil Nadu, under a Russian license.
  • The Akula-class submarine The Akula-class submarine, by contrast, is not manufactured in India at all. It is a Russian-built nuclear-powered submarine, built at Russia’s Vostok Shipyard.
  • India has leased India has leased, not bought or built, an Akula-class submarine, commissioned into Indian service as INS Chakra, under multi-billion-dollar lease deals lasting about ten years at a time.
  • The exam trap The exam trap here is treating “operated by India” and “manufactured in India” as the same thing. They are not.
🏘️ Good to Know
How Indigenous Are They, Really
  • Over half of Over half of the Su-30 MKI’s components are now made domestically, even though the underlying design remains Russian.
  • T-90 tank production T-90 tank production has climbed even further: over 90% indigenous content today, though still built under the original Russian license.
  • Su-30 MKI production Su-30 MKI production paused for several years, then resumed in 2024-25, with 12 more units ordered.
  • India’s current Akula-class India’s current Akula-class lease, Chakra III, is expected around 2028, and is meant for training purposes only, barred from combat or deterrence patrols.

Test Yourself

1. The Su-30 MKI fighter jet is license-built in India by which organization, at which location?

 

⚡ Great to Know
Why the Lease-vs-Build Distinction Matters
  • Leasing a submarine Leasing a submarine like the Akula-class gives India nuclear-submarine operating experience, without the decades of investment a fully indigenous nuclear-submarine programme would take.
  • License manufacturing, by License manufacturing, by contrast, as with the Su-30 MKI and T-90, builds real domestic industrial capacity and jobs over time, alongside growing indigenous content.
  • India’s own indigenous India’s own indigenous nuclear submarine programme exists separately, under projects like the Arihant class, distinct from the leased Akula-class vessels.
  • This mix of This mix of leased, license-built, and fully indigenous hardware is itself a useful lens for understanding India’s broader defence self-reliance push under Atmanirbhar Bharat.
  • A Second Lease, Unlikely India is reportedly moving away from leasing a second Akula-class submarine, as of mid-2026. Persistent delays to Chakra III, and the coming arrival of India’s own indigenous nuclear submarines, have reduced the value planners see in a further lease.

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