India aims to achieve annual defence production worth Rs 3 lakh crore and defence exports of Rs 50,000 crore by 2029, Defence Minister Rajnath Singh said on November 3.
Addressing the Defence Ministry’s Consultative Committee meeting in Jaisalmer, Rajasthan, Singh outlined the government’s plans to strengthen domestic manufacturing and modernise the armed forces. He said India was working towards building a technologically advanced military capable of responding to evolving security challenges.
Defence production has risen from Rs 46,429 crore in 2014-15 to a record Rs 1.78 lakh crore in 2025-26. Defence exports have also increased significantly, reaching approximately Rs 40,000 crore, compared with less than Rs 2,000 crore in 2014.
The minister highlighted the importance of modernising military capabilities through the introduction of advanced weapons systems and technologies. Discussions at the meeting covered artificial intelligence, autonomous systems, unmanned platforms, cyber capabilities and electronic warfare.
Singh also stressed the need for stronger coordination among the three armed services and greater joint operational planning. The government is seeking to expand private sector participation in defence manufacturing, including contributions from micro, small and medium enterprises and larger companies.
India’s defence budget for 2026-27 stands at Rs 7.85 lakh crore, with Rs 2.19 lakh crore allocated for capital expenditure and modernisation.
The government has described domestic defence manufacturing as a national priority, with increased production and exports expected to strengthen India’s industrial base and reduce dependence on imported equipment.
