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India Targets Rs 3 Lakh Crore Defence Production by 2029
India wants to make many more defence products inside the country.
The government hopes annual defence production will reach Rs 3 lakh crore by 2029.
It also wants defence exports to reach Rs 50,000 crore each year.
Government agencies are ordering more equipment designed or made by Indian companies.
Programmes such as iDEX, ADITI and the Technology Development Fund help startups develop defence technology.
Companies can also use technologies transferred from the Defence Research and Development Organisation.
Lists of thousands of products that must be sourced in India may create more business for local manufacturers.
Defence corridors in Uttar Pradesh and Tamil Nadu are being developed to attract investment and factories.
The government says these policies can help companies participate in everything from research to manufacturing and exports.
The government aims to raise annual defence production to Rs 3 lakh crore and exports to Rs 50,000 crore by 2029.
Defence production reached Rs 1.78 lakh crore in FY2025-26, with private companies contributing 24%.
Indigenous procurement approvals include 97 Tejas Mk-1A fighters and 156 LCH Prachand helicopters.
Innovation, technology-transfer and indigenisation programmes are opening opportunities for startups, MSMEs and manufacturers.
Defence exports reached Rs 38,424 crore in FY2025-26, with Indian equipment sold to more than 80 countries.
- Who
- The Indian government, the Ministry of Defence, public-sector defence entities, private companies, startups, MSMEs and technology developers.
- What
- India is expanding domestic defence manufacturing and targeting Rs 3 lakh crore in annual production and Rs 50,000 crore in exports by 2029.
- Where
- India, including the Uttar Pradesh and Tamil Nadu Defence Industrial Corridors.
- When
- The targets are set for 2029; the factsheet reports figures from FY2025-26 and programme data through May and June 2026.
- Why
- To increase self-reliance, expand indigenous procurement, support domestic companies and grow defence exports.
Key facts
- Production target
- Rs 3 lakh crore annually by 2029
- Export target
- Rs 50,000 crore annually by 2029
- FY2025-26 production
- Rs 1.78 lakh crore; the private sector accounted for 24%
- Indigenous procurement
- The Defence Acquisition Council approved Acceptance of Necessity for more than Rs 6 lakh crore of systems designed by the Defence Research and Development Organisation and made by Indian industry
- Indigenisation lists
- Ten lists covered 5,521 items by May 2026
- Defence exports
- Rs 38,424 crore in FY2025-26, compared with Rs 686 crore in FY2013-14
- Foreign investment
- Defence-sector foreign direct investment is allowed up to 74% through the automatic route and up to 100% through the government route
Sources
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