• 14th Pravasi Bharatiya Divas, Bengaluru
  • 14th Pravasi Bharatiya Divas, Bengaluru
  • A Coffee Table publication titled, "20 Mission Drive Social Impact Innovations" produced by Economic Diplomacy Division was released by the Hon'ble Prime Minister
  • Hon'ble Prime Minister Sh. Narendra Modi felicitating the 20 innovators selected through the MEA-NITI Aayog National Social Innovation Contest.
  • Global Technology Summit 2016 Click here for details
  • Global Technology Summit 2016 Click here for details
  • Ministry of External Affairs organises India-Latin Americas and the Caribbean (LAC) Conclave in Guadalajara, Mexico to enhance economic cooperation between India and LAC countries.
  • Ministry of External Affairs organises India-Latin Americas and the Caribbean (LAC) Conclave in Guadalajara, Mexico to enhance economic cooperation between India and LAC countries.
  • Global Technology Summit 2016 Click here for details
  • National Contest on Social Innovation, Pravasi Bhartiya Divas 2017
  • The Framework Agreement of the International Solar Alliance was opened for signing on 15 November 2016. On the first day of its opening 16 countries have signed the framework agreement. More countries are expected to sign the framework agreement in the coming days.
  • MEA - ED and BM Divisions along with Cll organized the India- Myanmar Business Roundtable on 19 October 2016 in New Delhi
  • ED Division continues MEAs engagement with Africa by sponsoring the India Africa Health Sciences Meet in New Delhi
  • 18 member multi-sector delegation from Nanjing, China interacting with Shri Nagaraj Naidu, Director & HOD, ED on 16 August 2016
  • Hon'ble Minister for External Affairs chaired Pravasi Bhartiya Diwas Panel-6 on "Edu, S&T & Innovation" on 30 July 2016. The Panel discussed tech solutions for societal problems, edu for tomorrow and Start Ups.
  • Hon'ble Prime Minister inaugurated investment guides for Indian investors who wants to do business with Kenya and Mozambique during his recent tri-nation visit to Africa. The publication was brought by ED Division with support from Indian Missions in Kenya and Mozambique.
  • Indian dignitaries at the inauguration of India pavilion at INNOPROM exhibition in Yekaterinburg Russia
  • ED Division facilitated visit of a Chinese delegation led by Mr Wang Hao, Mayor of Chaoyang district of Beijing Municipality and arranged meetings with officials of Municipal Corporation of Gurgaon and FICCI on 21 June 2016. (Press Release)
  • ED Division facilitates meeting of CEO of the British Columbia Investment Management Corporation Mr Gordon Fyfe and Team with Hon'ble Transport Minister Shri Nitin Gadkari and CEO NITI Aayog Shri Amitabh Kant on 16 June 2016
  • ED Division facilitates meeting of CEO of the British Columbia Investment Management Corporation Mr Gordon Fyfe and Team with Hon'ble Minister of Finance, Shri Arun Jaitley and CEO NITI Aayog Shri Amitabh Kant on 16 June 2016
  • Inter-Ministerial Meeting on Pharmaceuticals and Healthcare Sector in Africa
  • BRICS India 2016
  • Smt. Harsimrat Kaur Badal, Minister of Food Processing & Industry briefing representatives of foreign Embassies on opportunities in food processing sector in India in a meeting facilitated by ED Division on 17 March 2016 at Panchsheel Bhawan, New Delhi.
  • Investment
  • India at a glance
  • Trade
  • Economy

Industry & Sectors


India enjoys a strategic location with reference to continental Asia and the Indian Ocean Region. The Indian peninsular landmass covers an area of 3.3 million square km and its population of over 1 billion people encompasses a vast range of ethnic, religious, cultural and linguistic diversities. India's geographical area, strategic location, trade links and its exclusive economic zone (EEZ) connect, its security environment directly with its extensive neighborhood are some factors which involve concomitant security concerns, responsibilities and challenges in an increasingly global environment.

While geo-strategic imperatives play a defining role in our security paradigm, economic and social imperatives also shape our security concerns and objectives. The economy is growing rapidly and is among the fastest rising in the region and the world. The trajectory of India 's national development is based on the core values of democracy, secularism and peaceful co-existence. A stable and peaceful regional and global environment is necessary to achieve the aim of growth and prosperity for our citizens.

The country's defence services include three Armed Forces (i.e., the Army, the Navy and the Air Force), and other Departments, primarily Defence Research and Development Organisation (DRDO) and Defence Ordnance Factories.

Defence Research and Development Organisation (DRDO)

The Defence Research and Development Organisation (DRDO) has come a long way since its modest beginning in 1958. Starting with only 10 laboratories, DRDO has grown multi-dimensionally and has evolved to be a core research organisation with a vast network of 52 laboratories and establishments spread across the country. With a vision to empower India with cutting-edge technologies and equip our services with internationally competitive systems, DRDO has proven its competence to produce state-of-the-art strategic and tactical military hardware and related technologies in diverse disciplines such as aeronautics, armaments, combat vehicles, combat engineering, electronics, missiles, life sciences, materials and naval systems. At the core of this technological strength of DRDO is its expertise in system design, system integration, testing and evaluation and project management built over the last five decades, which has enabled it in developing indigenous capabilities in weapons and their delivery systems.

Defence Ordnance Factories

Indian Ordnance Factories is a giant industrial setup which functions under the Department of Defence Production of the Ministry of Defence. Indian Ordnance Factories, headquartered at Kolkata, is a conglomerate of 39 Factories, 9 Training Institutes, 3 Regional Marketing Centres and 4 Regional Controller of Safety.

Today,Ordnance Factor Board (OFB) along with its 39 factories spread over India provide:

  • A broad and versatile production base with multi-technology capabilities.
  • State of the art manufacturing facilities.
  • Large reservoir of skilled and professionally qualified manpower and managerial personnel.
  • Strict adherence to quality standard (all the units are ISO-9000 certified).
  • Original as well as adaptive research & development to make need based refinement and modifications.
  • Project engineering capability.
  • A strong base for industrial training facilities.
  • Ready market access due to convenient location.

Overview of defence spending in India

Expenditure on Defence in the year 2010-11 was US$ 33.5 billion. There was a 6.9% increase from the defence spending in 2009-10.

Defence Production

Defence Public Sector Units (DPSUs) continue to play an integral part in the defence production. Defence has for a long time been a part of the public sector since it requires large investments and substantial research and development (R&D) support. India maintains an extensive defence industrial base with 39 Ordnance Factories and 8 DPSUs which are engaged in the manufacture of state-of-the-art weapons and systems for the armed forces. Over the years, these organisations have aimed to achieve self-sufficiency and indigenization of defence manufacturing in the country. In terms of value of production, DPSUs account for more than 65 % of the total industrial output of all defence public sector entities in India . During 2010-11, the value of production by DPSUs totaled nearly US$ 3.9 billion.

Private Sector in Indian Defence Industry

The private sector mainly has been involved in supply of raw materials, semi-finished products, parts and components to Defence PSUs and Ordnance Factories to a great extent and also to Base Workshops of Army and Base Repair Depots of Air Force and the Dockyards of the Navy. Defence PSUs and Ordnance Factories are outsourcing their requirements from private sector (mainly SMEs) in the range of 20-25%. Out of this outsourcing, about 25% requirement is met through small scale sector.

Several hi-tech equipments have also been successfully produced by the private sector. In the quest for self-reliance in the crucial sector of defence, the Government has been continuing its efforts to indigenize defence equipment wherever technologically feasible and economically viable. It has been a part of indigenization efforts to locate and develop broad-based indigenous supply source – both in the public sector and in the civil trade for many complicated and intricate equipments.

After considering the capital intensive nature of defence industry sector as also the need to infuse foreign technology and additional capital including FDI, government decided in May, 2001 to open Defence industry for private sector participation up to 100% with FDI permissible up to 26% - both subject to licensing. Now with this policy change all defence related items have been removed from reserved category and transferred to the licensed category, as a result of which private sector can manufacture all types of defence equipment after getting a license.

Major Public Sector Undertakings in defence Sector

  • Hindustan Aeronautics Limited (HAL)
  • Bharat Electronics Limited (BEL)
  • Bharat Earth Movers Ltd (BEML)
  • Mazagon Dock Limited (MDL)
  • Garden Reach Shipbuilders & Engineers Ltd (GRSE)
  • Goa Shipyard Ltd (GSL)
  • Bharat Dynamics Limited (BDL)
  • Mishra Dhatu Nigam Limited (MIDHANI)

Major Private Players in defence sector

  • Tata Advanced Systems Limited (TAS)
  • Larsen and Toubro
  • Kirloskar Brothers
  • Mahindra Defence Systems
  • Ashok Leyland

Opportunity in Indian Defence industry

The defence opportunity is a win-win situation for the country. With stronger focus on IT, high-tech engineering and research and design capabilities. India can leverage its IT infrastructure and manufacturing potential to be one of the key global sourcing destinations for defence systems and equipment.

Indian industry is upbeat about the opportunities in defence and aerospace with continuous efforts of Government to develop and fine-tune the procurement regime and industry drivers that will enable industry to grow into a robust and sustainable defence industry in India.

Recent Achievements

  • Agni, the 3500 km range ballistic missile was successfully launched with user's participation.
  • Training flights were held by the users for various missiles that are already inducted. These included two flight tests each of Agni – I, Agni – II and Dhanush (from naval ships) and five flights of Prithvi II (P–II).
  • Successful flight tests of Endo-Atmospheric Interceptor for 2000 km class target were carried out. Each flight led to a direct target hit and disintegration of the target.
  • Capabilities of NAG, the third generation anti-tank missile, which is a vehicle mounted system was demonstrated in a series of user trials.
  • Advanced versions of BrahMos supersonic cruise missile, the only one of its kind in the world, were developed and flight-tested. Thus, BrahMos block II with target discrimination precision strike capabilities was test-fired. Similarly, BrahMos block III with capability for steep diving from high altitudes and high maneuvers at multiple points during supersonic flight.
  • Ring Laser Gyroscope (RLG) based Inertial Navigation System was developed, qualified and tested.
  • Active Radar Seeker for advanced missions was developed.
  • A Fibre Optics Gyro was successfully developed and tested on board.
  • In the area of Aeronautics, Tejas, the Light Combat Aircraft (LCA) concluded its extensive flight tests including weapon trials, dropping of bombs, jettisoning drop tanks and night flights; leading to its Initial Operational Clearance (IOC) on 10th January, 2011.
  • The first prototype of Light Combat Aircraft (LCA) Navy was rolled out and its induction tests were concluded. In tune with changing war of scenario, major thrust has been given to develop Unmanned Aerial Vehicle (UAV).
  • Successful flight trials of RUSTAM-1, a UAV with endurance of 14 hours and altitude ceiling of 8,000 meters demonstrated the capabilities for automated/remotely piloted landing/take-off and associated technologies.
  • NISHANT, another UAV developed by DRDO was ready for induction by the Army. A medium sized aerostat based platform was developed for surveillance applications. A novel method was developed and flight-tested for an in-flight structural monitoring of the manned as well as unmanned aircraft structures. The scheme was flight tested on a NISHANT UAV.
  • Over 100 test flights of a 3,000 gram Micro Aerial Vehicle (MAV) designed and developed by DRDO were carried out.
  • Major milestones in the indigenous development of fighter aircraft engine was achieved with the completion of “Official Altitude Testing” (OAT) of Kaveri Gas Turbine Engine for simulated operating conditions. Subsequently, the flights of Kaveri engine were successfully carried out on a Flying Test Bed (FTB) proving the technological capability and maturity of the indigenous efforts.
  • Advanced Active-cum-Passive integrated sonar system HUMSA NG was designed, developed and installed on various ships of Indian Navy. Autonomous Underwater Vehicle (AUV) capable of navigation was demonstrated at sea.
  • In the field of electronics and electro-optics, many systems were inducted/accepted by the services. 3D medium range surveillance radar - ROHINI and its naval variant REVATHI were inducted. 3D low-level light weight radar - Aslesha (for IAF) as well as Bharani (for Army) was accepted by the user.

Useful Web links


A study has been done by Ernst and Young India with the intention of providing an overview of the investment climate, taxation, forms of business organisations, and business and accounting practices in India.

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