Will India’s Defence Production Really Jump 6-Fold to Rs 8.8 Lakh Crore by 2047?
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Synopsis
India is set for a transformative leap in its defence sector, with projections indicating a six-fold increase in production by 2047. This ambitious goal aims not only to strengthen national security but also to position India as a global leader in defence technology. Can India truly achieve this vision?
Key Takeaways
- Defence production is expected to rise to Rs 8.8 lakh crore by 2047.
- Annual defence budget projected to reach Rs 31.7 lakh crore.
- Defence exports could grow to Rs 2.8 lakh crore.
- Total defence expenditure may rise to 4.5 percent of GDP.
- R&D budget allocation is expected to increase to 8-10 percent.
New Delhi, May 30 (NationPress) A recent report by the Confederation of Indian Industry (CII) and KPMG India reveals that the nation’s defence production is poised to escalate more than six times, reaching Rs 8.8 lakh crore in 2047, up from Rs 1.46 lakh crore in 2024-25.
It is anticipated that India's annual defence budget could expand approximately five-fold to Rs 31.7 lakh crore in 2047, compared to the current allocation of Rs 6.81 lakh crore for the financial year 2025-26.
The report, entitled “Atmanirbhar, Agrani, and Atulya Bharat 2047”, was unveiled during the CII annual business summit. It predicts that India's defence exports will soar to Rs 2.8 lakh crore by 2047, marking an almost 12-fold increase from Rs 24,000 crore in 2024-25.
Moreover, the report estimates that the country's total defence expenditure will rise to 4.5 percent of GDP by 2047, up from the current 2 percent of GDP.
Investment in R&D (research and development) within the defence budget is also projected to grow from 4 percent currently to between 8-10 percent as India strives to develop advanced military technologies.
While the report acknowledges the challenges in realizing the vision of a developed nation with a fortified defence sector by 2047, it emphasizes the importance of strong public-private partnerships and incentives to motivate private sector participation in defence manufacturing.
“Issues related to intellectual property (IP) rights and technology transfer with foreign partners hinder self-reliance. Overcoming these hurdles will necessitate strategic planning, increased budget allocations, streamlined processes, robust policy frameworks, and fostering innovation and cooperation between the public and private sectors,” the report asserts.
In its aim to position India as a prominent player in the global defence landscape, the report outlines specific “strategic vectors” with timelines for achieving this objective.
These vectors include enhancing self-reliance in defence production and capabilities by 2032, focusing on critical areas for indigenous development, reducing reliance on foreign suppliers, and promoting innovation through domestic R&D.
Additionally, by 2038, India aims to rank among the top five global exporters of premium defence equipment and technology by expanding international alliances and adhering to global standards.
The report sets a target for 2045 for India to lead in the development and deployment of cutting-edge niche technologies across the defence sector through collaborative efforts among industry, academia, and government, along with significant investments in futuristic R&D.
By committing to these strategic vectors, India can transform its aspirations into tangible outcomes, the report concludes.
Point of View
It is crucial to recognize the importance of India’s strategic advancements in defence production. The outlined projections, while ambitious, reflect the nation's commitment to self-reliance and global competitiveness. Our approach must prioritize collaboration between public and private sectors to ensure that these goals translate into reality, benefiting both national security and economic growth.
NationPress
08/06/2025
Frequently Asked Questions
What is the projected defence production of India by 2047?
India's defence production is expected to increase to Rs 8.8 lakh crore by 2047, up from Rs 1.46 lakh crore in 2024-25.
How much will India's defence budget rise by 2047?
The defence budget is projected to increase to Rs 31.7 lakh crore in 2047, compared to Rs 6.81 lakh crore currently allocated for financial year 2025-26.
What challenges does India face in achieving these defence goals?
Challenges include issues related to intellectual property rights, technology transfer, and the need for strategic planning and increased budget support.
What is the expected increase in defence exports by 2047?
Defence exports are projected to rise to Rs 2.8 lakh crore by 2047, marking a nearly 12-fold increase from Rs 24,000 crore in 2024-25.
What are the key strategic timelines mentioned in the report?
The report outlines key timelines, including enhancing self-reliance by 2032 and aiming to be among the top five global exporters by 2038.
