India Sets Annual Defence Production Target of Rs 3 lakh cr and Defence Exports worth Rs 50,000 cr by 2028-29

Defense News ,India :- India is on the brink of achieving a groundbreaking milestone in its defense sector, as announced by Defence Minister Rajnath Singh. The nation anticipates reaching an annual defense production of Rs 3 lakh crore by 2028-29, emphasizing a long-term vision to transform India into a developed nation by 2047. The Defence Minister highlighted the significant strides made in defense exports, surging from under Rs 1,000 crore to an impressive Rs 16,000 crore.

Boosting Indigenous Defense Production

Singh underscored India's emergence as a weapons exporter, ranking among the top 25 globally. Radical changes in the defense production sector have been implemented to align with Prime Minister Modi's vision of 'Aatmanirbhar Bharat' or a self-reliant India. The focus on domestic defense production has exceeded Rs 1 lakh crore annually, signaling a shift towards self-sufficiency in defense manufacturing.

Structural Reforms for Enhanced Coordination

Addressing a defense conclave, Singh discussed structural defense reforms, emphasizing improved coordination among the three services – the Army, Navy, and Air Force. Previously working in "silos," these services are now better prepared to collaboratively address challenges. Singh highlighted the importance of jointness, ensuring enhanced coordination during crises.

Strengthening the Domestic Defense Industry

Despite initial challenges, including bans on certain weapon system imports, Singh affirmed that these measures have fortified the domestic defense-industrial base. He expressed confidence in the domestic industry's ability to deliver state-of-the-art products and unveiled plans to manufacture high-end systems like aero-engines and gas turbines within India over the next five years.

Budget Allocation and Strategic Acquisitions

The defense ministry has been allocated a significant budget of Rs 6.2 lakh crore in the 2024-25 budget, the highest among all ministries. Singh emphasized that over Rs 4.3 lakh crore has been approved for capital acquisitions, showcasing the government's commitment to enhancing national security. Jointness among the Indian Army, Navy, and Air Force remains crucial for addressing challenges collectively.

Future Outlook and Industry Opportunities

Singh reiterated the government's focus on long-term gains, stressing the necessity of self-reliance in defense production for India's security. Initiatives such as positive indigenization lists and allocating 75% of the capital acquisition budget for local procurement demonstrate the commitment to supporting domestic companies. The government also champions start-ups in the defense sector, aiming to harness their innovations for global recognition in defense manufacturing.

Singh affirmed the government's determination to make India a major defense manufacturer, involving both established companies and start-ups. The recent Defence Acquisition Council meeting showcased effective steps taken to promote start-ups, with liberalized terms for procurement, costing, payment, and eligibility.