India with its two hostile neighbours continue to pose both conventional and nonconventional threats. These threats cover the whole range of conflict on land, at sea, in the air, and in space and outer space. This shows how important it is to have a strong defence architecture to stop all of these kinds of threats.
In any economy, growth in each sector helps the economy as a whole grow. The defence sector is very important because it gives the country the tools it needs to protect itself from both inside and outside threats.
One important thing to know about the industry is that the Government of India is its only customer. The other customers are from other countries that are friendly.
India's defence sector has gone through a lot of changes because the government wants to improve the country's defence by making it less reliant on imports.
The Indian government has banned the import of hundreds of military subsystems and parts. This has made India's goal of becoming more self-reliant clearer, set goals for local defence manufacturers, and put the spotlight on the road ahead.
This shows how the policy framework is slanted in favour of defence companies.
The government has put in place a number of plans and measures to help the sector grow, which have led to a steady flow of capital and investment opportunities. From April 2000 to September 2022, $15.71 million worth of FDI has been put into the defence industry, according to the Make In India website. Earlier in 2020, the government raised the FDI limit from 49 to 74 percent under the automatic route, and up to 100 percent in the defence sector through the government route.
