Defence manufacturing and indigenisation

India's policy for self-reliance in defence production rests on Positive Indigenisation Lists (PILs) banning import of specified items, and Defence Acquisition Procedure (DAP) 2020 categories—Make-I/II and IDDM. FDI is permitted up to 74% via automatic route and 100% via government route. Defence Industrial Corridors operate in UP and Tamil Nadu; iDEX (Innovations for Defence Excellence) supports startup-led innovation. OFB was restructured into seven new DPSUs. The Defence Production and Export Promotion Policy sets a ₹1.75 lakh crore production target and ₹35,000 crore export target.