As the aerospace and defence sector stands at the intersection of global uncertainty and rapid technological advancement, smart manufacturing is emerging as the backbone of defence preparedness and industrial competitiveness. The shift from traditional manufacturing to intelligent, interconnected production is no longer optional—it’s mission critical.
What is Smart Manufacturing and Why Now?
Smart manufacturing refers to the use of digitally integrated systems that communicate, analyze, and use data to drive intelligent manufacturing decisions. Technologies like:
- Industrial Internet of Things (IIoT)
- Digital Twins
- Artificial Intelligence (AI)
- Robotic Process Automation (RPA)
- Additive Manufacturing (3D printing)
are transforming how aerospace components are designed, produced, and maintained.
According to PwC’s 2024 Global Aerospace Outlook, over 70% of aerospace manufacturers globally are increasing investment in smart manufacturing to address supply chain volatility and the increasing demand for localized production.
India’s Strategic Push: Laying the Groundwork
India’s aerospace and defence industry is set to play a central role in the country’s push for Atmanirbhar Bharat (self-reliance). As of 2024:
- India has approved defence exports worth ₹21,083 crore, with major orders coming from Southeast Asia and Africa. (Source: PIB, March 2024)
- Government aims to achieve 70% self-reliance in defence manufacturing by 2027.
Recent Examples from India (2023–2025):
- HAL’s Digital Assembly Line for LCA Tejas
- Hindustan Aeronautics Ltd (HAL) has established a fully digitalized assembly line for the LCA Tejas Mk-1A fighter jet in Bengaluru.
- Incorporates digital twins, augmented reality for training, and real-time sensor monitoring.
(Source: HAL Annual Report 2024)
- Tata Boeing Aerospace’s Smart Wing Facility
- In Hyderabad, the Tata Boeing Aerospace Limited (TBAL) plant has transitioned to a smart production setup for manufacturing Apache helicopter fuselages.
- Integrated with IoT-based maintenance and RFID-enabled inventory tracking.
(Source: Boeing India Press Release, October 2023)
- Adani Defence & Elbit Systems JV
- Their Kutch-based UAV facility integrates AI-assisted visual inspection systems and autonomous part-handling robots.
- Targeting export of high-end drones to Israel and Europe by 2025.
(Source: Business Standard, February 2024)
- Bharat Forge’s Industry 4.0 Line for Artillery Systems
- The Pune facility now uses cloud-connected CNC machines and predictive analytics to manufacture advanced artillery barrels for Indian Army.
(Source: Kalyani Group Update, DefExpo 2024)
Five-Point Roadmap for Smart Manufacturing in Aero-Defence
- Digital Thread Across the Lifecycle
- From design to disposal, every component should carry a digital record for traceability and compliance.
- E.g., DRDO’s new digital BOM (Bill of Materials) platform tracks components for missile systems.
- Scalable Automation
- Use of collaborative robots (cobots) in manufacturing and inspection.
- Example: L&T Defence uses cobots for armoured vehicle turret fitting with 20% productivity gains.
- Additive Manufacturing (3D Printing)
- Used in rapid prototyping and weight-optimized parts.
- HAL and ISRO collaborated in 2023 to 3D print engine parts for satellite propulsion systems.
- Cybersecurity Built-In
- Defence manufacturing facilities are high-risk targets.
- India’s National Cyber Security Strategy 2024 recommends air-gapped and zero-trust systems for defence-grade networks.
- Skill Development & Ecosystem Building
- AICTE launched the AeroSkill 2.0 initiative in early 2025 to train 50,000 students and workers in aerospace manufacturing and smart systems.
- Startups like Tonbo Imaging and IdeaForge are already collaborating with DRDO for next-gen combat tech.
Expert Opinions: What Industry Leaders Say
“Smart factories are not the future—they are the present. India’s edge will come from digitizing at scale.”
— Salil Gupte, President, Boeing India
(Aero India 2023 Panel Discussion)
“Smart manufacturing allows us to compete globally while building resilience locally.”
— Rajesh Ramachandran, CTO, GE Aerospace India
(FICCI Manufacturing Summit 2024)
Challenges to Overcome
While the momentum is promising, challenges remain:
- High upfront investment for SMEs in defence manufacturing.
- Lack of standardization in integrating legacy systems with digital platforms.
- Cyber vulnerabilities in IoT-enabled infrastructure.
- Limited access to skilled technicians trained in AI, robotics, and aerospace-specific tools.
Vision to execution
India’s aerospace and defence transformation has progressed from vision to execution. With robust policy frameworks, active industry participation, and a focus on innovation, the sector is poised for significant advancements. To capitalize on this momentum, the following strategic actions are essential:
- Deepen Public-Private Partnerships: Encouraging collaboration between government entities and private enterprises will accelerate technological development and production capabilities.
- Invest in Digital Infrastructure and Workforce Upskilling: Allocating resources towards modernizing digital systems and training personnel will enhance efficiency and adaptability in manufacturing processes.
- Embed Cybersecurity and Data Governance: Implementing robust cybersecurity measures and data management protocols will safeguard sensitive information and ensure operational integrity.
Smart manufacturing has transitioned from a conceptual framework to a practical blueprint, driving India’s emergence as a secure, self-reliant, and globally competitive defence powerhouse.
Defence Minister’s Vision and Mission
“India is not just a market for defence manufacturing anymore—we are becoming a manufacturer for the world. Through technological advancement and private sector collaboration, we are writing a new chapter in self-reliance.”*
— Rajnath Singh, Defence Minister of India
(Source: DefExpo 2022 inaugural speech & Aero India 2023 address)
Shri Rajnath Singh underlined the government’s commitment to fostering innovation, particularly among the youth and start-ups. He stated that to encourage cutting-edge technology in the defence sector, iDEX was launched, which offers financial support of up to Rs 1.5 crore to selected start-ups.
Highlighting India’s growing strategic capabilities, Raksha Mantri mentioned that the country now stands shoulder to shoulder with developed nations in critical areas such as missile technology (Agni, BrahMos), submarines (INS Arihant), aircraft carriers (INS Vikrant), artificial intelligence, drones, cyber defence and hypersonic systems. “Aero engine manufacturing remains a challenge,” he said, while also pointing to significant progress under the Kaveri engine project and ongoing discussions with global players like Safran, GE and Rolls Royce to build domestic capabilities.
With emphasis on India’s success in shipbuilding, Shri Rajnath Singh stated that more than 97% of the war ships of Indian Navy and Indian Coast Guard are now built in Indian shipyards. Ships built by India are also being exported to friendly countries like Mauritius, Sri Lanka, Vietnam and Maldives.
Execution in Motion: 2024–2025 Milestones
- Shipbuilding Power: Over 97% of Indian Navy and Coast Guard ships are now built domestically. Indian-built ships are exported to countries like Mauritius, Sri Lanka, Vietnam, and Maldives.
- Start-Up Innovation Drive:
- ₹1.5 crore support under iDEX
- Up to ₹10 crore under iDEX Prime
- ₹25 crore grants via the ADITI Scheme
- Defence Ministry has already approved ₹2,400 crore worth of purchases from start-ups/MSMEs.
- Indigenisation Lists:
- 509 items for Services & 5,012 for DPSUs are now mandated to be made in India.
- Over 12,300 defence items have been indigenised in the last three years.
- Budget Alignment: 75% of the defence capital procurement budget reserved for domestic companies.
- Production Growth:
- Up from ₹40,000 crore in 2014 to ₹1.27 lakh crore in 2024
- Projected to cross ₹1.60 lakh crore in 2025
- Goal: ₹3 lakh crore by 2029
- Export Boom:
- From ₹686 crore in 2013–14 to ₹23,622 crore in 2024–25
- Defence exports now reach ~100 countries
- Target: ₹30,000 crore by 2025, ₹50,000 crore by 2029
“The target is to strengthen the hands of our start-ups and MSMEs… Our defence production and export are breaking new records.”
— Defence Minister
Minister underlined the government’s commitment to fostering innovation, particularly among the youth and start-ups. He stated that to encourage cutting-edge technology in the defence sector, iDEX was launched, which offers financial support of up to Rs 1.5 crore to selected start-ups. Building on its success, iDEX Prime was introduced, enhancing this support to Rs 10 crore. Further, the newly launched ADITI scheme provides assistance of up to Rs 25 crore to help scale breakthrough innovations.
“The target is to strengthen the hands of our start-ups and MSMEs and for this, the Ministry of Defence has approved purchases worth more than Rs 2,400 crore from start-ups/MSMEs, and projects worth more than Rs 1,500 crore have been approved for development of new technology,” he added.
