Step into any Indian defense expo these days and you can feel the change. There’s a new sense of confidence—India isn’t just buying from others anymore; it’s building its own. The numbers tell the story. Last year, India hit a record ₹1.27 lakh crore in defense production, all made at home, supported by partners delivering aerospace defense engineering services across platforms and subsystems. The Ministry of Defense credits this to steady policy changes under Atmanirbhar Bharat. And exports are taking off too—₹23,622 crore in FY 2024–25, up 12% from last year. Clearly, more countries want what India is making.
This surge isn’t just good luck. It’s the result of Defense Acquisition Procedure 2020, which puts Indian‑made gear at the top of the priority list. Higher local content is now mandatory. The rules even spell out how to buy global products only if they’re manufactured in India, and open the door wider for startups and MSMEs to bring in new ideas. These shifts are tightly coupled with digital transformation solutions for aerospace manufacturing—from automated test to model‑based design—transforming India from a buyer to a builder, and now, an exporter.
What’s really fueling this is demand you can count on. For 2024–25, 75% of capital procurement is reserved for Indian companies. That’s a huge boost for local suppliers and system integrators. Plus, the Ministry just rolled out the Fifth Positive Indigenization List—346 more items that defense PSUs must source only from Indian industry, with deadlines and procurement plans already visible on the SRIJAN portal.
Building new capacity is getting easier, too. The Defense Industrial Corridors in Uttar Pradesh and Tamil Nadu aren’t just plans on paper anymore. Over 250 MoUs have been signed to set up new units, turning these regions into real manufacturing hubs. Liberalized FDI—up to 74% automatic, 100% with approval—makes it even easier for investments to flow in and new factories to get off the ground fast. In this environment, leaders are asking how to enhance supply chain resilience in aerospace and defense?—and the answers increasingly include data‑driven risk scoring, alternate sourcing, and digital twin technology for aerospace product lifecycle management to anticipate disruption. India’s defense industry isn’t waiting. It’s moving.
Where the Opportunities are (and How They're Evolving)
Aerospace platforms are still India’s biggest bet when it comes to capital spending. Take the LCA Tejas Mk‑1A—it’s crucial for keeping up squadron numbers. After some engine delays, production is picking up speed. The Indian Air Force wants to add at least 97 more jets, which means the Mk‑1A fleet will eventually hit around 180. Sure, deliveries have slipped, but they’re trying to get back on track by opening new production lines, including one in Nashik. That opens the door for engineering teams to dive into embedded systems design for aerospace applications, avionics, systems integration, testing, and even digital twins to speed up trials—with DO-178C certification services for avionics software ensuring airworthiness from day one.
Airborne surveillance is getting a boost, too. The Netra Mk‑II AEW&C program just got the green light. Six Airbus A321s are being transformed with homegrown AESA radar and mission systems. Expect those to start rolling out in the early 2030s, after refits and testing. For engineers, that means a long, steady stretch of work on model-based systems engineering (MBSE) for defense projects, systems integration, EMI/EMC, mission computing, data links, and certification—an ideal playground for predictive maintenance solutions for defense equipment once fleets enter service.
Zoom in a bit, and C4ISR plus secure comms are on the rise. Software‑defined radios, resilient data links, and even private 5G for mission‑critical communications are moving out of the lab and into the field. Programs are increasingly commissioning custom software development for secure defense communication systems, pairing crypto‑grade stacks with robust DevSecOps pipelines and mission assurance frameworks.
And let’s not forget the unmanned game‑changer. Think loyal wingman UCAVs, nimble UAVs, and drone swarms—autonomous tech is making its way into tough, GPS‑denied environments. Many Indian teams are building for exactly these kinds of missions. Platforms like HAL’s CATS Warrior—a stealthy loyal wingman meant to fly alongside Tejas and other fighters—show where air combat is heading: humans and machines working together, sensors sharing data, and distributed firepower. Here, AI and machine learning integration for autonomous aerospace systems is no longer optional; it’s central to survivability and mission success.
Tata Elxsi: Documented Contributions that Show the "How"
As defense shifts toward software‑ and model‑driven systems, you need engineering partners who blend embedded safety with AI, autonomy, and certification. That’s where Tata Elxsi stands out—publicly demonstrated in following ways:
CATS Warrior (UCAV, HAL)
Tata Elxsi took on the full‑scale demonstrator airframe for the CATS Warrior, along with the fuel storage and landing gear—delivered in just 14 weeks. Before ground runs or taxi trials, the team verified structural integrity, CoG, symmetry, and fuel systems. It’s a rare level of speed and transparency in aerospace—especially for something flight‑worthy. HAL rolled out the full‑size Warrior prototype at Aero India 2025, underscoring the momentum behind AI‑enabled, MBSE‑driven development for manned‑unmanned teaming.
Advanced Air Mobility (with CSIR–NAL)
A formal partnership with CSIR‑NAL is pushing forward on UAVs, urban air mobility, and eVTOL. NAL brings deep aeronautics know‑how; Tata Elxsi adds electrification, sensor fusion, AI/ML, and certification‑ready software. Together, they’re accelerating digital twin technology for aerospace product lifecycle management and robust MBSE practices that shorten test cycles without compromising safety.
Across these programs, Tata Elxsi’s avionics team focuses on DO‑178C/DO‑254 compliance, HIL/SIL automation, and cyber‑secure systems. These are mandatory guardrails for flight software, SDRs, and mission computers, and they connect directly to aerospace defense engineering services portfolios that customers can scale across platforms.
Why This Matters (and How to Plug in)
If you’re building defense tech, working on autonomy, or blending sensors with software, India’s set up a system that gets results. There’s a clear policy push with DAP 2020 and PILs, dedicated budgets, and industrial corridors that help projects scale fast. Exports are climbing—₹23,622 crore in FY 2024–25—so the world’s taking notice. That opens the door for licensed manufacturing, joint ventures, and co‑development in India. The breakthroughs are happening where disciplines collide: teams use MBSE, digital twins, and AI/ML to slash testing time for airframes, sensors, and mission logic. Edge AI is powering ISR on tight SWaP budgets. Autonomy is advancing in GNSS‑challenged environments with robust navigation and secure defense communication software over private 5G. Meanwhile, predictive maintenance solutions for defense equipment and global A&D cybersecurity consulting services keep fleets available and systems hardened. It’s a move fast, certify right mindset—and companies like Tata Elxsi are making it work.
A Closing Thought
India’s defense sector isn’t just big—it’s changing, fast. It’s not all about hardware anymore. Platforms like Tejas, Su‑30 upgrades, and Netra Mk‑II set the stage, but the real action comes from digital engineering, MBSE, AI/ML, and secure communications. Teams that balance strict flight standards with quick iteration—DO‑178C‑aligned avionics, embedded systems design for aerospace applications, and digital transformation solutions for aerospace manufacturing—will win this decade. They’re the ones who’ll turn ideas into working systems, not just endless trials. Look at CATS Warrior and the UAV CoE: Tata Elxsi isn’t on the sidelines—it’s in the thick of this move‑fast, certify‑right future.
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Authors
Senior Marketing Manager – Transportation Business
Tata Elxsi
Senior Engineer – Aerospace & Defense
Tata Elxsi
