India’s defence manufacturing is on track to surpass ₹1.6 lakh crore in value this year, Defence Minister Rajnath Singh said on Thursday. Addressing the Defence Conclave 2025 – Force of the Future, organised by The Week, Singh laid out a clear and ambitious roadmap for the future of India's defence sector.
“This year, defence production should cross ₹1.60 lakh crore, while our target is to produce defence equipment worth ₹3 lakh crore by the year 2029,” he stated.
This planned leap is not just about numbers. It's part of a broader vision to build a strong domestic military-industrial base, cut dependence on foreign suppliers, and position India as a global defence hub.
'A credible deterrent, not a provocation'
Singh emphasised that India's growing military capabilities are rooted in deterrence and stability—not confrontation.
“Our defence capabilities are like a credible deterrence, to maintain peace and tranquillity. Peace is possible only when we remain strong,” he said.
He also underscored India’s larger national vision. “The day is not far when India will not only emerge as a developed country, but our military power will also emerge as the number one in the world,” Singh declared.
Export targets rise alongside domestic push
India’s defence exports, which have steadily increased over the past decade, are set for another major boost. The government expects them to reach ₹30,000 crore in 2025 and grow to ₹50,000 crore by 2029.
“Our defence exports should reach ₹30,000 crore this year and ₹50,000 crore by the year 2029,” Singh said.
The aim is to strengthen India’s place in global defence supply chains by focusing on flexibility, innovation and strategic partnerships.
Rebuilding from within
A key part of India’s military reform, Singh noted, was the transformation of the Ordnance Factory Board—one of the oldest institutions in Indian defence.
“Today Ordnance Factories are performing very well in their new form and have become profit-making units. I believe that changing a structure that is more than two hundred years old is a very big reform of this century,” he said.
This restructuring, while bold, was essential. The goal: to inject efficiency, transparency and profitability into a legacy system long seen as sluggish and outdated.
Indigenisation lists shape the future
Singh spotlighted a crucial move by the Defence Ministry: the release of five positive indigenisation lists each by the Armed Forces and the Defence Public Sector Undertakings (DPSUs). These outline items that must now be manufactured within India under a phased timeline.
“The total number of defence equipment, weapon systems and platforms included in the list of the services is 509. These will now be produced in India,” he said.
“Similarly, the total number of items included in the DPSU lists is 5,012 including strategically important Line replacement units, sub-systems, spares and components,” Singh added.
This push reflects the government’s ongoing commitment to the 'Make in India' initiative—especially in strategic sectors like defence.
Three-quarters of Budget reserved for Indian firms
In a significant policy shift, the government has decided to reserve 75% of the defence capital procurement budget for domestic companies.
This move is designed to support homegrown defence firms and to protect India's strategic interests from volatile global supply chains.
“Today, while India's defence sector is moving ahead on the path of self-reliance, it is also ready to play a very important role in making global supply chains resilient,” Singh said.
Facing the future: War will look different
Singh warned of the evolving nature of warfare, which he said will become more violent, unpredictable, and multi-dimensional in the coming years.
He said cyber and space are fast emerging as new battlefronts. At the same time, countries are also engaged in a constant war of perception and narrative, further complicating the modern battlefield.
To meet these challenges, Singh said the government’s approach includes holistic capacity building and sustained reform.
Modi government’s strategic shift
Singh credited Prime Minister Narendra Modi’s leadership for the renewed focus on India’s defence sector.
Under this leadership, he said, there has been a fundamental shift in mindset—from viewing India as a passive buyer to becoming an active producer.
"The revival and strengthening of the defence sector is one of the biggest priorities for the government,” Singh said. “The government's first and foremost challenge was to change the mindset that India would simply import to meet its defence needs.”
The result is a reimagined and reenergised defence sector, one that aims to ensure security at home while contributing to peace abroad.
“This year, defence production should cross ₹1.60 lakh crore, while our target is to produce defence equipment worth ₹3 lakh crore by the year 2029,” he stated.
This planned leap is not just about numbers. It's part of a broader vision to build a strong domestic military-industrial base, cut dependence on foreign suppliers, and position India as a global defence hub.
'A credible deterrent, not a provocation'
Singh emphasised that India's growing military capabilities are rooted in deterrence and stability—not confrontation.
“Our defence capabilities are like a credible deterrence, to maintain peace and tranquillity. Peace is possible only when we remain strong,” he said.
He also underscored India’s larger national vision. “The day is not far when India will not only emerge as a developed country, but our military power will also emerge as the number one in the world,” Singh declared.
Export targets rise alongside domestic push
India’s defence exports, which have steadily increased over the past decade, are set for another major boost. The government expects them to reach ₹30,000 crore in 2025 and grow to ₹50,000 crore by 2029.
“Our defence exports should reach ₹30,000 crore this year and ₹50,000 crore by the year 2029,” Singh said.
The aim is to strengthen India’s place in global defence supply chains by focusing on flexibility, innovation and strategic partnerships.
Rebuilding from within
A key part of India’s military reform, Singh noted, was the transformation of the Ordnance Factory Board—one of the oldest institutions in Indian defence.
“Today Ordnance Factories are performing very well in their new form and have become profit-making units. I believe that changing a structure that is more than two hundred years old is a very big reform of this century,” he said.
This restructuring, while bold, was essential. The goal: to inject efficiency, transparency and profitability into a legacy system long seen as sluggish and outdated.
Indigenisation lists shape the future
Singh spotlighted a crucial move by the Defence Ministry: the release of five positive indigenisation lists each by the Armed Forces and the Defence Public Sector Undertakings (DPSUs). These outline items that must now be manufactured within India under a phased timeline.
“The total number of defence equipment, weapon systems and platforms included in the list of the services is 509. These will now be produced in India,” he said.
“Similarly, the total number of items included in the DPSU lists is 5,012 including strategically important Line replacement units, sub-systems, spares and components,” Singh added.
This push reflects the government’s ongoing commitment to the 'Make in India' initiative—especially in strategic sectors like defence.
Three-quarters of Budget reserved for Indian firms
In a significant policy shift, the government has decided to reserve 75% of the defence capital procurement budget for domestic companies.
This move is designed to support homegrown defence firms and to protect India's strategic interests from volatile global supply chains.
“Today, while India's defence sector is moving ahead on the path of self-reliance, it is also ready to play a very important role in making global supply chains resilient,” Singh said.
Facing the future: War will look different
Singh warned of the evolving nature of warfare, which he said will become more violent, unpredictable, and multi-dimensional in the coming years.
He said cyber and space are fast emerging as new battlefronts. At the same time, countries are also engaged in a constant war of perception and narrative, further complicating the modern battlefield.
To meet these challenges, Singh said the government’s approach includes holistic capacity building and sustained reform.
Modi government’s strategic shift
Singh credited Prime Minister Narendra Modi’s leadership for the renewed focus on India’s defence sector.
Under this leadership, he said, there has been a fundamental shift in mindset—from viewing India as a passive buyer to becoming an active producer.
"The revival and strengthening of the defence sector is one of the biggest priorities for the government,” Singh said. “The government's first and foremost challenge was to change the mindset that India would simply import to meet its defence needs.”
The result is a reimagined and reenergised defence sector, one that aims to ensure security at home while contributing to peace abroad.
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