India is accelerating its efforts to become a major global defence manufacturing hub, with the government setting an ambitious target of achieving Rs 3 lakh crore in annual defence production and Rs 50,000 crore in defence exports by 2029. Defence Minister Rajnath Singh reiterated these goals while emphasising the importance of military modernisation, indigenous manufacturing and technological innovation in strengthening India’s defence capabilities.
During a meeting of the Ministry of Defence’s Consultative Committee on the Modernisation of Indian Defence Forces in Jaisalmer, Rajasthan, Singh highlighted the progress achieved by India’s defence industry over the past decade. He stressed that strengthening domestic manufacturing capabilities is essential for reducing dependence on foreign suppliers and ensuring long-term strategic autonomy.
India’s defence production has witnessed substantial growth, increasing from approximately Rs 46,429 crore in the financial year 2014-15 to a record Rs 1.78 lakh crore in FY2025-26. Defence exports have also expanded significantly, rising from less than Rs 2,000 crore in 2014 to approximately Rs 40,000 crore. The government aims to build on this momentum to achieve its 2029 production and export targets.
Singh emphasised that achieving these objectives would require greater participation from defence public sector undertakings, private manufacturers, start-ups and micro, small and medium enterprises (MSMEs). He called for stronger collaboration between government organisations, defence companies and research institutions to accelerate indigenous technology development and improve the quality of domestically manufactured military equipment.
The Defence Minister also highlighted the importance of emerging technologies in shaping future warfare. Discussions during the meeting covered artificial intelligence, autonomous systems, unmanned aerial platforms, cyber capabilities, space-based technologies and electronic warfare. These technologies are becoming increasingly important for modern military operations, making continuous investment in research and development essential for maintaining operational superiority.
India’s increased defence budget is expected to support these modernisation efforts. The allocation for the financial year 2026-27 stands at Rs 7.85 lakh crore, including Rs 2.19 lakh crore in capital expenditure for military modernisation and equipment procurement. Singh stressed the need for effective utilisation of financial resources and prioritisation of critical operational requirements across the three services.
He also called for closer coordination between the Indian Army, Indian Navy and Indian Air Force to improve joint operational capabilities. Greater integration among the services, combined with advanced equipment and improved training, will be important in addressing evolving security challenges.
The meeting further highlighted the role of private industry in strengthening India’s defence supply chain. Encouraging domestic companies to participate in the development and production of advanced military systems is expected to create new industrial opportunities, support innovation and generate employment.
Members of Parliament from both Houses participated in the discussions and shared suggestions on improving defence preparedness and accelerating modernisation initiatives.
India’s ambition to achieve Rs 3 lakh crore in defence production and Rs 50,000 crore in exports by 2029 reflects its broader commitment to building a self-reliant defence ecosystem. Sustained investment, technological innovation and stronger industry participation will be crucial to achieving these goals and expanding India’s position in the global defence market.