The Society of Indian Defence Manufacturers (SIDM) is the not-for-profit apex body representing the domestic aerospace and defence manufacturing industry in India. Founded in 2017, it is headquartered in New Delhi, India. It acts as an advocate, catalyst, and facilitator for capability-building and growth in the defence sector, working closely with the Indian government. Membership includes both public and private sectors, including large enterprises, MSMEs, start-ups, Foreign Original Equipment Manufacturers (FOEMs), and academic institutions. Its key contributions have been in shaping major national policy frameworks like the Defence Acquisition Procedure (DAP) 2020 and Positive Indigenisation Lists.
India’s Defence Data Points
2nd largest Armed Forces: 1.5 Million Active
2nd largest Army; 4th largest Air Force; 5th largest Navy by Tonnage
7,517 km coastline, 15,000 km of borders
Huge and Growing Defence and Aerospace Economy
India’s military spending 5th highest in the world.
2nd Largest Importer of Defence equipment
Defence Budget Growth
In recent years, the budget has increasingly focused on promoting domestic manufacturing and developing the necessary infrastructure to support it. The current government has introduced various policies and incentive schemes aimed at fostering Aatmanirbharta (self-reliance).
Defence budget, ₹2.53 lakh crore in 2013-14 to ₹7.85 lakh crore (~$85.6 Bn) in 2026-27 (15% increase last year). Average increase of 10.41% CAGR.
Modernisation ₹2.19 lakh crore (~$23.9 Bn). India‘s capital budget is 28% of the total defence budget – NATO around 20% – Desirable 35%.
R&D Spend 0.65% of GDP (USA – 3.6, and China – 2.6). Private involvement in R&D is increasing. Defence R&D is open to industry, start-ups and academia, with 25 per cent of the defence R&D budget earmarked.
Nation’s Defence Production Drive
India‘s journey toward self-reliance in defence has successfully transformed the nation from one of the world’s largest importers into a major global exporter. Domestic defence production recently reached an all-time high of ₹1.78 lakh crore, with roughly 65% of military equipment now manufactured domestically, and exports exceeding ₹38,000 crore.
Indian Government Initiatives
Continuously Evolving Defence Acquisition Procedure (DAP)
Defence Procurement Manual (DPM)
iDEX (Innovations for Defence Excellence)
Defence Industrial Corridors (DICs)
Digital export authorisation
Liberalised FDI
Technology Development Fund (TDF)
SRIJAN Portal
Positive Indigenisation List (PIL)
Mission Raksha Gyan Shakti (Promote IPR)
But Still High Exports Based on build-to-print.
Indian Defence Industry – Constituents & Output
16 DPSUs (70 Factories), 200,000 Employees;
Private Sector – 10 Large & ~16,000 MSMEs; ~1,000 Defence Start-ups
Defence production 2025-26 – ₹1.78 lakh crore (US$21 Bn). 76% (US$ 16 Bn) – DPSUs. 24% (US$ 5 Bn) – Private sector
Defence Exports ~ ₹38,424 crore ($4.6 billion) in 2025-26 (34x in the last decade; 54% Growth in one year): 55% DPSUs (21,130 Cr), 45% Private Industry (17,295 Cr)
India Exports to over 100 countries now. Our Position is in the top 20 globally.
Private Sector Emerging as the engine of growth in the defence sector.
India Advantage: Defence Manufacturing cost of doing business
India’s defence manufacturing cost of doing business is highly competitive, driven by low labour costs, a large pool of engineering talent, and aggressive government incentives. Operating expenses are significantly lower than in Western nations or developed Asian economies, allowing companies to establish highly cost-effective production hubs.
Indian companies can deliver 70–80% of required capabilities at roughly 30–40% of traditional North American and European costs.
Indian Defence – Major Exports
Exporting to over 100 countries.
Major export products span naval vessels, missile systems, artillery, and personal protective gear, with primary buyers including the United States, France, Armenia, Vietnam, the Philippines, Sri Lanka, Myanmar, Mauritius, and the Seychelles.
Missile Systems: BrahMos, Akash SAMs, 155mm Howitzers, multi-barrel rocket launcher Pinaka, anti-tank systems, varied ammunition, bulletproof jackets.
Dornier-228, ALH & Chetak helicopters, thermal imagers, radars, and body armour.
India also exports niche defence electronics, software components, and specialised parts to advanced markets including the US and Europe.
SIDM Overview
The Society of Indian Defence Manufacturers (SIDM) is a not-for-profit association formed to be the apex body of the Indian defence industry. SIDM will play a proactive role as an advocate, catalyst, and facilitator for the growth and capability building of the defence industry in India.
VISION
Catalyse the Indian defence industry to effectively contribute to India‘s national security and become a trustworthy global partner.
MISSION
Work closely with the government towards enabling the growth of the defence industry.
Collaborate with experts from the armed forces, academia, and defence industry to optimise the industry’s development capabilities.
Facilitate growth of the industry through:
Policy and progress advocacy; policy and market research
Emerging technology and new opportunities;s Indigenisation and innovation
Education and skill development; export promotion
VALUES
India First
One Voice
Win Wars with Indian Solutions
THE SIDM ADVANTAGE
Strategic Direction Setting: For envisioning future opportunities for growth, capabilities, competitiveness, etc.
Policy Advocacy Support: Provide information on policy provisions and create a platform for effective industry-government dialogue
Consultancy Services: Hand-holding for new entrants and issue-based consultancy
Knowledge Platform: Insightful reports and newsletters, seminars and workshops
Opportunity Alerts: RFIs / RFPs, national and global tenders, etc.
Progress Tracking: Track progress of projects and facilitate relevant dialogue
Outreach: Across platforms to shape an informed discourse
SIDM: Marshalling India’s Sixth Force – The Industry
The Society of Indian Defence Manufacturers (SIDM) is a not-for-profit association formed as the apex body of the Indian defence industry. It acts as an enabling link between the Forces, Government and the Industry and thus creates an environment conducive to making Indian Defence Manufacturing a global force.
Its areas of work include:
Policy Advocacy
SIDM strengthens the process of policymaking by presenting the perspective of the defence industry to the policymakers.
Working Towards Creating an Enabling Policy Environment
The Government of India is refining policies to promote self-reliance, indigenisation, technology upgradation, and economies of scale in India’s defence manufacturing sector. SIDM acts as the voice of the Industry and works closely with the Government and the Forces to help shape a conducive policy environment for the growth of the defence industry in India.
SIDM has played an instrumental role in the formulation of key policies related to the Aerospace & Defence sector such as the Defence Acquisition Procedure (DAP) 2020, Draft Defence Procurement Manual (DPM) 2020, Draft Defence Production & Export Promotion Policy (DPEPP) 2020 as well as both the first and second positive indigenisation lists. In fact, the change in the name of the DPP (Defence Procurement Procedure) to DAP was also recommended by SIDM.
Apart from presenting the industry perspective on the government’s proposed policies, SIDM also sends regular representations to the MoD and other concerned ministries on issues constraining the industry’s ease of doing business.
Industry-Armed Forces-Govt Linkages
SIDM facilitates direct interface between the industry and the users and helps the latter understand industry capabilities.
Bringing Together the Government, Industry and the Armed Forces
SIDM facilitates regular interactions between the representatives of Service Headquarters, the Ministry of Defence, and other ministries and key government stakeholders. The meetings serve as a direct interface between the Industry and the Users and apprise the procurement personnel of the industry’s capabilities.
SIDM also has the unique distinction of being the only industry organisation to have signed MoUs with all three Services – the Army, the Air Force and the Navy. Via these MoUs, SIDM works towards furthering the Hon’ble Prime Minister’s goal of aatmanirbharta in the defence sector.
Facilitating B2B & B2G Interactions
As an industry association, SIDM derives its strength from its members and their well-being.
SIDM creates regular platforms for facilitating interactions among its members, all the while also identifying new opportunities outside the member base all over the globe. SIDM is increasingly becoming the preferred partner for companies looking for a single point of contact for doing business in defence in India and regularly hosts incoming foreign delegations to promote the capabilities of the Indian Industry. Similarly, SIDM also mounts Indian industry delegations to various countries that have evinced an interest in collaborating with the Indian Industry.
In addition, SIDM has developed a unique Directory of Indian Manufacturing Capabilities for Defence & Aerospace. The Directory is a comprehensive resource for manufacturers to list their capabilities, and details of their R&D and manufacturing facilities and certifications. This Directory serves as a ready reckoner for government agencies and OEMs (both domestic & international) to help them identify suitable players for fulfilling their requirements, supply chain, joint venture, technology tie-ups, etc.
Engaging with International Stakeholders
SIDM expands the Industry’s global footprint by engaging with counterpart organisations and Indian Missions abroad.
Taking Indian Defence Manufacturing to the World
SIDM has been working, in line with the Government’s vision, to expand the Industry’s global footprint by engaging with its counterpart organisations and Indian Missions abroad. It organises seminars, delegations and interactions with countries that have a strong defence market and works to enhance bilateral defence cooperation between India and its partner countries.
SIDM also works to boost exports by connecting industry with the global market based on inputs received from the MoD. SIDM has facilitated export and JV/Partnership requests from Bangladesh, Uzbekistan, Zambia, Ukraine, South Africa, UK, the Philippines, and Tanzania for items ranging from Mine-Protected vehicles to explosives and ammunition to the industry.
Consultancy
SIDM maps the industry’s core competencies and helps them be part of the global defence supply chain integrations.
Assessing a Company’s Ability to be a Part of Aerospace and Defence Manufacturing
The Society of Indian Defence Manufacturers (SIDM), under the aegis of the Confederation of Indian Industry (CII), offers Defence & Aerospace Consultancy Services (DACS). This unique offering helps map the competence and capability of the Indian Industry for defence manufacturing.
Leveraging the CII legacy
Over the last two decades, CII has pioneered many successful policy initiatives, business events, and training programmes in the Defence and Aerospace sectors. SIDM is now carrying forward the legacy by further bridging the information gap between government and Industry with regard to Indian industry capabilities.
The Society’s DACS vertical works to reduce India‘s dependency on imports, transform Indian defence manufacturing and enlarge the share of Indian private industry in the defence sector. The overarching intent is to change the perception that Indian industry cannot engage in Aerospace and Defence manufacturing.
Mapping core competencies to market needs
SIDM provides the members of the Indian Industry, who want to enter the defence sector with a clear and impartial assessment of their existing capability and advisory on the opportunities available to them. This service is unique as it maps the industry’s core competencies to the customer’s requirements and increases their ability to integrate with the defence supply chain.
The expert team of SIDM and CII assesses the company’s capability to manufacture various defence products, both with their existing facilities and incremental additions. The team also offers specialist consultancy and advisory services relating to the Defence Procurement Procedure and policies.
Capacity Building
SIDM organises the ‘Defence Acquisition Management Course (DAMC)’ to familiarise Indian industry with the Defence procurement process.
Building Capacities for a Better Defence Ecosystem
The Society of Indian Defence Manufacturers (SIDM), in collaboration with the Confederation of Indian Industry (CII), regularly organises the ‘Defence Acquisition Management Course (DAMC)’ to familiarise Indian industry with several aspects of the Defence procurement process and thereby increase its participation in manufacturing.
A two-day certificate course
This course equips industry executives with thorough knowledge of procurement processes of the Ministry of Defence and organisations under its control. It helps them understand changes in procurement and acquisition-related processes and procedures of the Defence establishments. Over 900 participants have benefitted from DAMC since 2003, as have their businesses.
The course also covers access to technologies developed by DRDO, Outsourcing/Vendor Development Guidelines for DPSUs and OFB, access to Test facilities of DRDO / DPSUs / DGQA / Army and also discussions on how to respond to RFIs, RFPs and submitting Bids and Outsourcing/Vendor Development Guidelines for DPSUs and OFB.
The course provides the participants with an appreciation of the size and nature of opportunities for the private industry as well as underlying processes to plug into the defence sector.
B2B Connect
SIDM regularly hosts incoming foreign delegations and also takes Indian industry delegations abroad.
B2B Connect
As an industry association, SIDM derives its strength from its members and their well-being. SIDM creates various platforms for facilitating interaction among its members, all the while identifying new opportunities outside the member base all over the globe. SIDM is increasingly becoming the preferred partner for companies looking for a single point of contact for doing business in defence in India and regularly hosts incoming foreign delegations visiting India to promote their business interests. Similarly, SIDM mounts Indian industry delegations to various countries that have evinced an interest in collaborating with the Indian Industry. In addition, SIDM has developed a unique Directory of Indian Manufacturing Capabilities for Defence & Aerospace. The Directory is a comprehensive resource for manufacturers to list their capabilities, and details of their R&D and manufacturing facilities and certifications. The directory facilitates interaction amongst companies from various segments of defence manufacturing on a single platform and fosters partnerships.
President SIDM 2025-27
Mr Arun T. Ramchandani has been elected as the President of the Society of Indian Defence Manufacturers (SIDM) for FY 2025-2 He is Senior Vice President & Head, Precision Engineering and Systems (PES) IC, Larsen & Toubro Limited.
Arun Ramchandani joined L&T in 1984 after completing his B.Tech in Mechanical Engineering from IIT, Delhi. He is a prominent Defence & Aerospace leader in India with over four decades of experience.
Under him, L&T’s Aerospace & Defence business has been incubated and grown to its current scale as Precision Engineering & Systems Independent Company (PES IC).
He has been instrumental in the design & development of critical equipment and new products for Defence & Aerospace, with expertise in systems engineering, design & simulations. A recognized technology professional, he served as the Chair of the CII National Committee on Defence, besides being an Executive Council Member of SIDM. He is a Fellow of INAE, with Honorary Fellowship by ISSE and Eminent Engineer Award by IEI.
Vice President SIDM 2025 -27
Mr Neeraj Gupta has been elected as the Vice President of the Society of Indian Defence Manufacturers (SIDM) for FY 2025-27. He is Managing Director, MKU Ltd.
In the past 37 years, Mr. Gupta has fronted the business’s growth by focusing on expanding exports, having established a vast and ever-growing network of channel partners globally, to partner with MKU’s local vision. MKU has catered to 230 forces across 100 countries so far.
Mr. Gupta pioneered MKU’s entry into the body armour space, strategically steering the company towards building a strong global reputation as a leading defence and homeland security company. His decision to acquire AST GmbH, a German corporation, played a key role in MKU’s venturing into Platform Protection Solutions in 2008. This strategic acquisition aligned two different working styles and cultures (German and Indian) to a united vision, thereby gearing the MKU team to be one driven by a commitment to precision, excellence, and a mission to empower heroes, on the ground and at the frontline, around the world.
DG SIDM 2023–Present
He leads the apex body representing the Indian defense industry. In this role, he functions as a strategic bridge between private/public manufacturers and the Indian Armed Forces, Ministry of Defence, and international stakeholders to advance India’s Aatmanirbhar Bharat (self-reliance) goals.
Summary
If one is serious in Defence Business, SIDM invites membership from companies registered in India, academic institutions, R&D institutions, government bodies as well as societies. To view the SIDM Membership Brochure, click here. To view the SIDM Start-Up Forum Membership Brochure, click here.
Header Picture Credit: Representative Image Generated using AI
Twitter: @AirPowerAsia
Like, Share, and Subscribe