India has set an ambitious target of achieving ₹3 lakh crore in annual defence production as the government intensifies efforts to strengthen domestic manufacturing and expand the country’s position in the global defence market. Minister of State for Defence Sanjay Seth announced the target while addressing the second Annual Trident Lecture of the Centre for Joint Warfare Studies (CENJOWS) in New Delhi.
According to the government, India’s defence production has already reached around ₹1.78 lakh crore in the financial year 2025–26, marking a significant rise in the country’s indigenous defence manufacturing capabilities. The government has also set a target of ₹50,000 crore in defence exports by 2029, underlining its broader ambition to move beyond meeting domestic requirements and become a major defence manufacturing and exporting nation.
The latest production target represents another major step in India’s Aatmanirbhar Bharat drive, which seeks to reduce dependence on imported military equipment while developing a stronger domestic industrial base. Over the past several years, policy reforms, increased private-sector participation and greater emphasis on indigenous procurement have helped expand India’s defence manufacturing ecosystem.
Government data shows that defence production increased from ₹1,54,071 crore in FY 2024-25 to approximately ₹1.78 lakh crore in FY 2025-26. The latest figure is also more than double the ₹84,643 crore recorded in FY 2020-21, highlighting the rapid expansion of the domestic defence industrial sector.
India’s defence export sector has also witnessed substantial growth. Defence exports reached ₹38,424 crore in FY 2025–26, compared with just ₹686 crore in FY 2013-14. Indian defence products are now being exported to more than 80 countries, reflecting the growing international presence of the country’s defence industry.
The push for higher production is expected to support a wide range of sectors, including aerospace, missiles, naval systems, armoured platforms, artillery, electronics, unmanned systems and other advanced military technologies. A stronger domestic manufacturing base can also help the armed forces secure critical equipment and spares with greater supply-chain resilience during prolonged periods of geopolitical tension or conflict.
The government’s strategy is increasingly focused not only on producing more defence equipment but also on improving technological capabilities, encouraging innovation and developing products that can compete in international markets. India’s defence industrial ecosystem currently includes Defence Public Sector Undertakings, private defence companies and thousands of MSMEs that contribute to the manufacturing and supply chain.
The ₹3 lakh crore production target and ₹50,000 crore export goal therefore represent a broader effort to transform India from a major defence importer into a globally competitive defence manufacturing hub. With domestic production already at a record level, the coming years will be crucial for expanding manufacturing capacity, developing advanced technologies and increasing the global footprint of Indian defence products.