Indian Navy boosts indigenisation efforts with Rs 2,200 crore projects
New Delhi: The Indian Navy has intensified its push towards indigenisation, securing a total of 22 Acceptance of Necessity (AoN) approvals, valued at approximately Rs 2,200 crore, officials confirmed on Tuesday. This marks a significant milestone in the Navy’s ongoing efforts to bolster domestic manufacturing capabilities and reduce reliance on foreign imports. Out of these approvals, 13 have already been converted into acquisition contracts worth Rs 1,194 crore.
The AoN approvals are part of the Navy’s larger strategy to support the government’s ‘Aatma Nirbhar Bharat’ (self-reliant India) initiative. This move is designed to ensure that the country develops its own defence production capabilities, while simultaneously creating employment and fostering economic growth within the Micro, Small and Medium Enterprises (MSME) sector.
The Navy’s commitment to building ships and submarines within Indian shipyards, using locally sourced materials and technologies, is expected to provide a substantial boost to the country’s defence manufacturing ecosystem. As part of this, major shipbuilding projects are increasingly being awarded to Indian contractors, with the expectation that the resultant projects will have significant economic ripple effects across various industries.
Officials have pointed out that this strategy not only strengthens India’s maritime security but also fosters an ecosystem that supports job creation in sectors linked to defence manufacturing, including metal fabrication, electronics, and ship maintenance. “These projects spur the growth of ancillary industries and generate a wide range of employment opportunities across the nation,” a senior Navy official said.
Moreover, the move is expected to provide a lifeline to numerous MSMEs, many of which play a crucial role in the supply chain for the Navy’s shipbuilding projects. The government has been particularly focused on increasing the participation of MSMEs in defence procurement, ensuring that smaller companies have a stake in the country’s burgeoning defence manufacturing landscape.
Further, the Navy’s efforts have been acknowledged for driving ancillary investments, which officials estimate will trigger a multiplier effect in the economy. Every major shipbuilding project contributes to the growth of supporting industries, ensuring a steady demand for skilled labour, machinery, and raw materials. “For every Rs 100 invested, there is a potential Rs 280 in economic activity generated,” a defence analyst noted.
In addition to the economic gains, the shift towards domestic production of naval vessels and equipment also enhances the Navy’s operational readiness by ensuring faster access to critical supplies and reducing dependency on volatile international markets.
The Navy’s progress in indigenisation reflects India’s broader strategy to modernise its armed forces while nurturing a homegrown defence industry that is capable of meeting the country’s future security needs.
