India Targets ₹3 Lakh Crore in Defence Production by 2029 with ₹50,000 Crore in Exports
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Synopsis
The Indian government aims to achieve ₹3 lakh crore in defence production by 2029, with a focus on boosting domestic manufacturing capabilities and increasing defence exports to ₹50,000 crore. This effort highlights India's growing role in the global defence sector and its commitment to self-reliance.
Key Takeaways
- Target of ₹3 lakh crore in defence production by 2029.
- 65% of defence equipment is now made domestically.
- Defence exports to reach ₹50,000 crore by 2029.
- Defence exports surged by 32.5% year-on-year.
- 193 contracts signed in 2024-25, totaling ₹2,09,050 crore.
New Delhi, March 29 (NationPress) The government announced on Saturday its ambition to reach ₹3 lakh crore in defence production by 2029, further establishing the nation as a global defence manufacturing hub.
Currently, about 65 percent of defence equipment is produced domestically, marking a notable transition from the previous dependency on imports of 65-70 percent.
A strong defence industrial framework comprises 16 DPSUs, over 430 licensed companies, and approximately 16,000 MSMEs, which enhance indigenous production capabilities, as stated by the Ministry of Defence.
“The private sector is vital, contributing 21 percent to the overall defence production, promoting innovation and efficiency,” the statement emphasized.
The government has set a target of attaining ₹50,000 crore in defence exports by 2029, further solidifying India's position in the global defence market while contributing to economic growth.
Defence exports increased by 32.5 percent year-on-year, escalating from ₹15,920 crore in FY 2022-23 to ₹21,083 crore in FY 2023-24.
Defence exports have escalated 21 times, from ₹4,312 crore during the 2004-14 decade to ₹88,319 crore in the 2014-24 decade, showcasing India’s growing significance in the global defence arena.
India now supplies defence equipment to over 100 countries, with the US, France, and Armenia emerging as the primary buyers in 2023-24.
Furthermore, the Ministry of Defence disclosed it has finalized a record 193 contracts in 2024-25, with a total contract value exceeding ₹2,09,050 crore, nearly double the previous highest amount.
Out of these, 177 contracts, making up 92 percent, have been awarded to the domestic industry, totaling ₹1,68,922 crore, which is 81 percent of the overall contract value.
This strong emphasis on indigenous manufacturing aligns with the aim of self-reliance in defence production, enhancing local industries and creating employment opportunities throughout the sector.
In FY24, the value of defence production reached a record high of ₹1,27,434 crore, representing an impressive 174 percent increase from ₹46,429 crore in 2014-15, according to data from all Defence Public Sector Undertakings (DPSUs), other public sector units manufacturing defence items, and private companies.
