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Just a decade after independence, the young nation of India entered a frontier conflict with both neighbours. This inflicted a significant toll on the budget, and since then, India has been a net importer of arms. Recognising the strategic and economic risks of this dependence, the government introduced the Defence Production and Export Promotion Policy (DPEPP) 2020. A move that places the onus squarely on the defence sector not only to safeguard national security, but also to boost indigenous manufacturing, promote exports, reduce reliance on imports, create jobs, and drive economic growth.
TATA IIS is an initiative by the Tata Group that, in partnership with the Ministry of Skill Development and Entrepreneurship (MSDE), Government of India, is setting up IIS Mumbai and IIS Ahmedabad as world-class skilling institutes. Drawing from the Tata Group’s legacy of institution building, including IISc, TISS, and TIFR, TATA IIS is focused on creating a global benchmark for quality and relevance in vocational education. Its goal is to match the imperatives of global manufacturing as it moves steadily towards greater self-sufficiency in advanced manufacturing and electric vehicles.
In this article, we explore how India’s defence sector is not only advancing strategically but also emerging as a significant driver of job creation in manufacturing. We’ll examine the current state of the industry, the challenges it faces, and the wide range of opportunities it presents, while highlighting initiatives such as the Indian Institute of Skills, which aims to build a skilled workforce and help transform the manufacturing sector into a self-reliant powerhouse.
The total defence budget for 2025-2026 has reached a colossal ₹6.81 lakh crore, a 9.53% increase from the previous year. This huge allocation to the defence sector will catapult military and defence production capabilities. The budget is expected to improve various facets of the defence sector, enhancing security and technological advancements.
Let’s look at developed economies like the United States. Their defence sector spending leads significantly, with nearly $1 trillion allocated annually, followed by China at $314 billion. India, a developing country, ranks fifth, putting a whopping $81 billion (approx.) on the defence sector in 2025. While this is a noteworthy position, it highlights that India is a heavy importer of defence equipment. India is still the second-largest importer of arms globally till 2020-2024. However, India has seen a slight decline in imports, which points to an emerging trend of increased self-reliance in defence production.
Russia still holds the position of India’s largest defence supplier, accounting for nearly 36% of India’s arms imports, and France is the second largest supplier, with around 28% of the supplies. Targeting self-reliance in the defence sector, India has significantly reduced its dependency on Russia, which previously accounted for 72% of its arms imports from 2010-2014.
The government has launched multiple policies and schemes to position India as a global defence manufacturing giant. However, significant challenges remain, particularly in the form of skill gaps and a slow pace in terms of innovation. A critical barrier is the shortage of skilled professionals in advanced manufacturing sectors such as arms production, aviation, and aerospace engineering. This gap continues to hinder India’s ability to innovate and meet the growing demand for cutting-edge defence technologies.
For Instance, India is still not able to figure out the prototype of the fifth-generation Advanced Medium Combat Aircraft (AMCA), which will not happen before 2028, while China has already developed a sixth-generation fighter jet. Administrative straggling hinders the procurement and deployment of defence equipment.
The Indian government has taken cognisance of these challenges. It has launched several initiatives to increase domestic production. As reported, the Indian defence manufacturing sector has seen an exponential increment; it had produced weapons worth ₹46,000 crore domestically in 2014-15, which increased significantly to ₹1.27 lakh crore in 2023-24\. That is truly empowering the ‘Make in India’ narrative of the government.
Defence exports have been growing since the government pushed for domestic production, which has become proactive in recent years. In 2014 -15, India’s defence exports were around ₹2,000 crores. By 2023-24, this figure had crossed ₹21,000 crore, and the government aims to increase it to ₹50,000 crore by 2029. To achieve this, the government has committed to completing an 18 billion-dollar defence order pipeline in 2025.
The rise of private players in defence manufacturing gave a multi-fold leap to the sector. Private companies and players contribute 60% of India’s defence exports. Furthermore, out of 193 contracts that were out for tender filling in 2024-25, domestic companies were awarded 177 of those defence contracts, which reflects the growing role of local players in the defence sector.
As the government pushed for greater domestic manufacturing, along with PSU, private players played a significant role in the sequence of events. Though job creation has not manifested primarily lately, it is facilitating the creation of jobs, too. Establishing defence manufacturing corridors, such as the one in Karnataka, which has seen an investment of ₹28,000 crores, is expected to create more than 12,000 direct jobs and additional indirect employment opportunities. Similarly, Uttar Pradesh’s defence corridor, with an investment of ₹500 crores, is projected to generate over 1 lakh jobs.
India has seen many unicorn startups ranking top in their class; rising demand for defence products has also led to the creation of more than 1,000 startups in India. These startups are not only contributing to the growth of the industry but also playing a significant role in innovation.
For instance, the Innovation for Defence Excellence (iDEX) platform, launched in 2018, is a kind of incubator for defence manufacturers. iDEX has further supported startups by providing funding and grants for seed funding to nascent ventures and mature technologies.
During Operation Sindoor, the Indian military extensively used domestic weapons. One such weapon was the Sky Striker, a precision-guided missile system. With 100% accuracy, this weapon has proven its effectiveness in destroying terrorist infrastructure with commendable accuracy. It is proudly developed by an Indian company that has reaped the benefits of the Defence Manufacturing Policy. Alpha Design Technologies is the perfect product for this initiative; with help from Israel’s Elbit Systems, the Sky Striker has attracted international attention, with many countries lined up to purchase it. The days are not far when India will develop 90% of its defence equipment indigenously, mostly by private players.
Sky Striker is just one fine example; India’s BrahMos missile system has become an indigenous weapon that has seen significant success globally. A weapon with the finest global compliance and standards has led countries like Vietnam, Saudi Arabia, Brazil, and Egypt to express interest in acquiring BrahMos. It was developed by the joint efforts of DRDO, ISRO, and BEL. It has proven effective and is expected to contribute significantly to India’s defence exports.
India’s defence sector is undergoing a transformational phase. The government’s focus on self-reliance, the push for domestic manufacturing, and the rise of innovative startups are laying the foundation for a stronger, more independent defence industry. Addressing the basic challenges of skill gaps became necessary, as a skilled workforce is the need of the hour to fulfill the demand for India’s defence manufacturing.
TATA IIS is an initiative by the Tata Group that, in partnership with the Ministry of Skill Development and Entrepreneurship (MSDE), Government of India, is setting up IIS Mumbai and IIS Ahmedabad as world-class skilling institutes. Drawing from the Tata Group’s legacy of institution building, including IISc, TISS, and TIFR, TATA IIS is focused on creating a global benchmark for quality and relevance in vocational education. Its goal is to match the imperatives of global manufacturing as it moves steadily towards greater self-sufficiency in advanced manufacturing and electric vehicles.
TATA IIS offers industry-aligned training in advanced manufacturing, additive technologies, and welding for aerospace. It will surely supplement the capacity of public undertakings and private players with essential technical expertise for advanced defence manufacturing.
TATA IIS offers hands-on experience in 7 courses that include: CNC machining, 3D printing, Arc welding, industrial automation, Robotics automation, EV battery specialist and EV 2/3- wheeler service specialist, equipping students with the precision skills needed for smart and advanced manufacturing.
One needs to apply for the choice of location’s website – IIS Mumbai, IIS Ahmedabad, after which there will be an entrance test, and if you succeed, your admission gets confirmed by paying the minimal admission fees.
Indian Institute of Skills is managed by TATA IIS, and it has two campuses. One is IIS Ahmedabad, and the other is IIS Mumbai. Both are functioning at full throttle now with a complete laboratory setup with state-of-the-art facilities and equipment.
Yes, dedicated support is given to the trainees who have completed their coursework successfully. Check out the website for more information on placements.
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Inspired by the tree of knowledge, this logo implies a tree with interspersing dots representing various skills that the institute offers, making it a wholesome skilful tree. The tree’s bark represents individuals with different mindsets coming together with a common purpose of growth. Lastly, one can subtly see the acronym IIS which also represents students as figurines.
To date, we have trained around 650 students. Our alumni are working with notable companies, such as Torrent Power, Powellite Electricals, Tata Motors, Bajaj Auto, and L&T. . Equipped with holistic technical and business skills, many alumni have also chosen the path of entrepreneurship to realise their dreams.
We firmly believe in inclusion. Identifying segments that need us the most is one of our goals. We are mindful of reaching the tribals and marginalised and ensuring maximum women participation.
Learning from the industry is at our core. Our industry partners are deeply involved, right from course design and delivery to recruitment. Our current partners include Fronius, Universal Robots, SMC, Phillips Machine Tools, Multivista, Fanuc, MIR, Markforged, Schneider Electric, Lincoln Welders, Hexagon, Formlabs, ABB, Festo, Ather, Tata Motors, Thermax, Larsen & Toubro, Bajaj Auto Ltd., Carraro, Marriott, Indian Accent, Taj, Lollo Rosso, Tomato’s, Ramada by Wyndham, Novotel, La Milano Pizzeria, Renaissance Hotels, The Fern, Tatr, IFEA, The Job Plus, Happy Faces, Sewa.
The campus is situated on a 4.17-acre land parcel at Chunabhatti inside the National Skill Training Institute campus in the state of Maharashtra. The first phase of development comprises a 22,500-square-foot facility housing advanced manufacturing and electric vehicle laboratories. The facility also includes classrooms and advanced computer laboratories for training in allied areas, providing trainees with a real-world environment akin to working in the manufacturing industry. It is equipped to train approximately 190 students at a time.
Spanning over 2.5 lakh square feet, the campus features infrastructure that includes training facilities, hostels, and dedicated spaces for student activities, supporting comprehensive learning and growth.
