During the fiscal years 2024 to 2029, India’s defense output is expected to rise at a rate of 20% annually. The government has set lofty goals to increase defense manufacturing’s self-reliance. The Ministry of Defense has made a major commitment to strengthening the nation’s defense capabilities and lowering dependency on imports by outlining plans for defense production to reach ₹1.75 lakh crore in FY 2025 and increase to ₹3 lakh crore by FY 2029.
India’s defense output reached a new high of almost ₹1.27 lakh crore in FY 2023–24, a significant rise over prior years. This expansion is ascribed to successful government initiatives, such as the Make in India campaign, that support domestic manufacturing. The transition from primarily importing weapons to becoming an
Government Initiatives: To promote domestic production, the Indian government has enacted a number of changes, such as easing restrictions on foreign direct investment (FDI) and expediting the procurement procedure. These programs seek to increase domestic industrial capacity and draw in foreign investment.
Private Sector Involvement: The private sector currently accounts for about 21% of defense output, suggesting that private businesses are increasingly playing a part alongside public sector units (DPSUs). In order to promote innovation and boost competitiveness in the defense sector, this diversification is essential.
Export Growth: From just ₹686 crore ten years ago to an all-time high of ₹21,083 crore in FY 2023–24, India’s defense exports have experienced a sharp increase. By 2029, the government hopes to boost exports to ₹50,000 crore, underscoring India’s growing influence in the world armaments trade.
The aggressive goals for defense production are in line with India’s strategic goal of becoming a center for independent defense manufacturing. India is well-positioned to meet its security demands and establish itself as a dependable partner in international defense partnerships because to its continuous investments in R&D and emphasis on indigenization.
In conclusion, deliberate government actions and growing public and private sector involvement are driving India’s defense sector’s strong growth trajectory. The dedication to being self-sufficient and improving export capacities highlights the country’s changing position in the world’s defense manufacturing.
