The successive Indian governments since 1947 have continually worked to indigenize the weapons manufacturing, particularly indigenous warship construction, given the country’s extensive coastline along the Arabian Sea and the Andaman Sea. Over time, the aspiration to establish a blue-water navy intensified, leading to the deployment of an increasing number of warships and submarines. India consistently emphasized indigenization, recognizing that building such a navy requires more than merely importing ships and platforms. Under Prime Minister Narendra Modi’s push for self-reliance, the domestic defence industry has apparently achieved a significant milestone by manufacturing all major naval platforms within Indian shipyards. To project influence across the Indian Ocean Region (IOR), India has aimed to develop a robust maritime force with both defensive and offensive capabilities. This effort reflects a broader ambition to emerge as a dominant maritime power in the region. The main question addressed in this paper is: How has India’s effort to indigenize its warship-building industry and what implications does this development have for security dynamics in the IOR, especially for Pakistan? To explain this, the paper applies neorealism conceptual framework. This study finds that India, under Narendra Modi, has emerged as the only state in the IOR that has achieved the capability to build all types of warships domestically. This development is likely to create a security dilemma for IOR littoral states and may also threaten strategic stability between Islamabad and New Delhi. The paper concludes that India’s ambitious naval modernization plans are more likely to accelerate maritime competition.