Is India Aiming for Rs 3 Lakh Crore in Defence Production by 2029?
Click to start listening
Synopsis
India is on a determined path to achieve Rs 3 lakh crore in defence production and Rs 50,000 crore in defence exports by 2029. Union Minister Mansukh Mandaviya outlines the country's focus on self-reliance in defence, highlighting significant growth in indigenous manufacturing, investments, and exports. This ambitious target aims to position India as a global leader in defence manufacturing.
Key Takeaways
- Target of Rs 3 lakh crore in defence production by 2029.
- Rs 50,000 crore in defence exports also planned.
- Indigenous production has grown 174% in the last decade.
- 65% of defence equipment is now manufactured domestically.
- MSMEs play a vital role in the defence manufacturing sector.
New Delhi, Dec 18 (NationPress) India has set an ambitious goal of achieving Rs 3 lakh crore in defence production and Rs 50,000 crore in defence exports by 2029, according to Union Minister Mansukh Mandaviya. This initiative emphasizes the country's commitment to Aatmanirbharta in the defence sector.
During a press briefing in the capital, the Minister for Labour & Employment and Youth Affairs & Sports remarked that India’s path towards self-reliance in defence has advanced from mere policy aspirations to a strategic reality.
He pointed out that local manufacturing has substantially decreased India's reliance on imports while enhancing domestic capacities.
The Union Minister noted that India achieved its highest defence production ever in FY 2024-25, reaching Rs 1.54 lakh crore. Indigenous production has surged by nearly 174 percent over the last decade, increasing from Rs 46,429 crore in 2014-15 to Rs 1.27 lakh crore in FY 2023-24.
“Currently, India produces approximately 65 percent of its defence equipment domestically, a notable improvement from the earlier import dependency of 65-70 percent,” he stated.
He also emphasized that Micro, Small and Medium Enterprises (MSMEs) have become vital players in this transformation, with around 16,000 MSMEs now forming the backbone of India's defence manufacturing ecosystem.
The Minister highlighted that reforms in defence procurement, production, and exports have successfully tackled historical issues like slow acquisition processes, limited private sector involvement, and minimal exports.
Recent policy initiatives, including the Defence Procurement Manual 2025 and the ongoing review of the Defence Acquisition Procedure 2020, aim to enhance speed, transparency, and innovation.
“The emphasis on the Indian-Indigenously Designed, Developed, and Manufactured (IDDM) category prioritizes that defence equipment is designed, developed, and manufactured in India,” he mentioned.
In July 2025, the Defence Acquisition Council approved proposals worth Rs 1.05 lakh crore for advanced platforms like armoured vehicles and missile systems, focusing heavily on the ‘Buy Indian–IDDM’ category.
The Minister also pointed out the success of defence industrial corridors in Uttar Pradesh and Tamil Nadu, which have attracted investments exceeding Rs 9,100 crore. Nearly 92 percent of defence contracts in FY 2024-25 were awarded to domestic companies, further supported by the issuance of 788 licenses to 462 firms.
Defence exports have experienced an impressive rise, growing nearly 34 times from Rs 686 crore in FY 2013-14 to a record Rs 23,622 crore in FY 2024-25. India now exports defence equipment to over 100 countries, including missiles, aircraft, and protective gear.
Reiterating the government's long-term vision, he stated that India is well on its way to becoming a global defence manufacturing hub by the end of the decade.
Point of View
It's clear that the government is committed to fostering self-reliance in this strategic sector. The emphasis on indigenous manufacturing and the inclusion of MSMEs highlights a progressive approach towards creating a robust defence ecosystem. As India positions itself as a potential global leader in defence manufacturing, it will be crucial to monitor the implementation of these policies and their impact on both domestic and international fronts.
NationPress
20/12/2025
Frequently Asked Questions
What is the target for India's defence production by 2029?
India aims to achieve Rs 3 lakh crore in defence production by 2029.
How much does India plan to export in defence by 2029?
India has set a target of Rs 50,000 crore in defence exports by 2029.
What is the significance of Aatmanirbharta in defence?
Aatmanirbharta, or self-reliance, is crucial for reducing dependency on imports and enhancing domestic capabilities.
What percentage of defence equipment is currently manufactured in India?
India manufactures approximately 65 percent of its defence equipment domestically.
How have MSMEs contributed to defence manufacturing?
Around 16,000 MSMEs have become key players in India's defence manufacturing ecosystem.
