Image Source – Times of India
In a major step towards strengthening India’s defence manufacturing, Tembo Defence, a wholly-owned subsidiary of Tembo Global Industries Limited (NSE: TEMBO), received 100 acres in Amravati, Maharashtra to build an advanced arms and ammunition manufacturing facility. With an existing order book of ₹1,525 crore, this is a landmark moment in India’s efforts to become self-sufficient in the production of defence hardware under ‘Make in India.’ Along with the goal set by the Ministry of State (MoS) for Defence of ₹3 lakh crore in defence exports by 2029, it reflects India’s status in the international defence business.
Tembo Defence’s Amravati Facility: A Game-Changer
On June 9, 2025, Tembo Defence received a confirmation letter from the Maharashtra Industrial Development Corporation (MIDC) granting its allocation of 100 acres in Amravati for the CFS (Centre for Full Scale) arms and ammunition manufacturing unit. This unit will further contribute to the existing domestic production capability of defence critical systems like small arms, ammunition, and possibly cutting edge technology. There will be a potential benefit to India’s defence capacity in establishing the unit in the fast-growing industrial city of Amravati, developing employment opportunities and economic activity in the region.
With a current order book of ₹1,525 crore, Tembo Defence has clearly established credibility and confidence in the market. Although Tembo Defence has been primarily a defence equipment components manufacturer, we intend to use this new facility as a platform to develop a portfolio of produce that are used both domestically and internationally by defence forces. The new facility will include the latest technologies used in the manufacture that will follow the aim of reducing imported defence technologies in contributing to India’s modern defence paradigms.
This comes after a number of government efforts to enhance indigenous defence manufacturing, such as the establishment of two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, the ‘Make in India’ policy, and more liberalised FDI (Foreign Direct Investment) norms. These government policies have provided a springboard for private defence players such as Tembo Defence, since the company has taken a positive step towards its own Amravati presence. The development also indicates the government’s recent policies have succeeded in inducing investment and innovation in the defence space.
India’s Defence Export Ambitions: ₹3 Lakh Cr by 2029
In parallel, the Ministry of State for Defence has set a comprehensive target of ₹3 lakh crore (approximately US$36 billion) defence exports by 2029. The all-out target is built on India’s achievements in defence exports, with the high watermark of ₹23,622 crore (US$2.76 billion) accrued in defence exports in FY 2024-25 alone, demonstrating a 12.04% year-over-year increase over FY 2023-24 and an increase of thirty-four-fold from FY 2013-14. The MoS for Defence highlighted the wide reach of India’s exports, with defence exports going to over 80 countries, and that Indian defence products are accepted by the world.
Among the major platforms driving India’s export growth are the BrahMos supersonic cruise missile, Pinaka multi-barrel rocket launcher, Dornier-228 aircraft, and Akash surface-to-air missile system. The MoS for Defence built on the above progress with two consequential deals, with a ₹3,800 crore BrahMos missile export to Indonesia in February 2025, and the second batch of BrahMos missiles being exported to the Philippines in April 2025, emphasizing India’s advanced manufacturing capabilities. In addition to the above, Munitions India Limited (MIL) finalized a $225 million deal in 2024 to supply artillery ammunition to Saudi Arabia and have also accrued export orders with a total value of ₹6,000 crore as in March 2024.
The government’s efforts around ‘Atmanirbhar Bharat’ (Self-Reliant India) have played a crucial part in the export scramble. The SRIJAN portal, which looks to indigenization, and the 1,762 export authorizations for FY 2024-25 (an increase of 16.92% over the last year) have made it easier to get processes done and motivated more private sector participation. The Defence Production Department’s online export authorization platform has also made it easier and faster, allowing Indian businesses to be part of the global supply chains.
Strategic and Economic Implications
The establishment of Tembo Defence’s Amravati facility and the target of ₹3 lakh crore in defence exports by 2029 will have enormous effects on India in both strategic and economic terms. In terms of strategy, decreasing our foreign source dependency (currently defence equipment dependency is around 35-40%) makes India more self-reliant and just plain better able to field a military. India’s advances in high-tech (e.g., the 155 mm Smart Ammunition developed by MIL and IIT Madras) bolsters India’s position as a sophisticated weapons developer among advanced nations who use precision weapons.
On the economic front, the defence sector is a major engine of growth. In FY 2023-24, India reached ₹1.27 lakh crore in defence production, which is 174% increase over the ₹46,429 crore in FY 2014-15. The defence sector boasts about 16,000 MSMEs and about 430 licensed vendors, employing millions. The Amravati facility’s potential contribution to the ecosystem is its establishment of local sourcing for supply chains and development of adjacent industries.
The Indian defence sector also contributes to India’s international standing as seen through its defence exports. By supplying equipment to countries regionally and globally, India not only bolsters existing diplomatic ties, but oftentimes establishes a base level of defence cooperation within critical Indian Ocean states. CareEdge Ratings has estimated a 20% CAGR from FY24 to FY29 for defence production will help support the Government’s anticipated ₹3 lakh crore defence exports by 2029.
Challenges and the Road Ahead
Even with these accomplishments in place challenges remain. The defense ecosystem faces regulatory and technical hurdles, competition with established global companies, and ongoing challenges of innovation to meet the evolving threats. Critics have noted that a large percentage of India’s defense budget is used for salaries and pensions, leaving limited funding for modernization. Numerous domestic private sector c companies have entered the market, but limiting funding may yield de-centralized and ad-hoc procurement strategies, not ensuring that the equipment sourced will be homologous and standardised.Equipment compatibility and standardization will be as concerns arise as India diversifies to equip its armed forces.
To tackle these obstacles the government is funding research and development, Including ₹23,855 crore for DRDO in the Interim Budget 2024-25, and ₹1 crore for deep tech innovation. While the Innovations for Defence Excellence (iDEX) program will advocate for startups, technology development initiatives, and Industries-Defence Corridors are expected to yield ₹20,000 crore in investments.
References:
- India’s Defence Manufacturing Industry Revolutionizing Exports | IBEF
- Defence manufacturing gets shot in the arm – www.newindianexpress.com
- India’s defence exports surge to record high of Rs 23,622 crore in FY25 – Times of India
- Indian defence sector is set to grow 20% during FY24-FY29 – APDR
