🛡️ Can ‘Make in India’ Catapult India to a ₹3 Lakh Crore Defence Powerhouse by FY29?
India’s ambitious ‘Make in India’ campaign has set its sights high — aiming to transform the country into a ₹3 lakh crore ($36 billion) defence manufacturing giant by FY29. This vision, announced by Defence Minister Rajnath Singh, relies on a robust mix of public-private partnerships, export growth, and indigenous R&D.
🚀 Why This Target Matters
India has long been one of the world’s largest arms importers. But through Atmanirbhar Bharat, the country is determined to reverse that narrative and emerge as a global defence exporter.
📈 Key Drivers Powering the ₹3 Lakh Crore Ambition
🔧 1. Focus on Indigenisation
The Defence Ministry has banned the import of over 500 weapons and systems, including drones, artillery, and missiles. DRDO and Indian private players are ramping up to fill these gaps with homegrown tech.
🌍 2. Defence Exports on the Rise
India’s defence exports have surged to ₹21,000 crore in FY24, compared to ₹1,500 crore in FY15. Key buyers include Vietnam, the Philippines, and African nations. The government aims to hit ₹50,000 crore in annual defence exports by FY29.
🤝 3. Private Sector & FDI Push
Companies like Tata Advanced Systems, Larsen & Toubro, Adani Defence, and Bharat Forge are taking centre stage. FDI in defence has been liberalised up to 74% via automatic route, attracting tech collaborations and capital inflows.
🏗️ 4. Infrastructure & Innovation Boost
Defence corridors in Uttar Pradesh and Tamil Nadu, new testing labs, and defence tech incubators are rapidly enhancing industrial capacity and innovation ecosystems.
🛡️ 5. Simplified Procurement & DAP 2020
The Defence Acquisition Procedure (DAP) 2020 favors Indian vendors and startups with fast-track approvals, innovation incentives, and trial exemptions for indigenous products.
📊 Where India Stands Now
| Metric | Current (FY24) | Target (FY29) |
|---|---|---|
| Defence Production | ₹1.26 lakh crore | ₹3 lakh crore |
| Defence Exports | ₹21,000 crore | ₹50,000 crore |
| Import Dependency | ~30% | <10% |
❓ FAQs
Q1: What is India’s defence production target for FY29?
A: India aims to achieve ₹3 lakh crore in defence production by FY29 under the Make in India initiative.
Q2: Which companies are driving India’s defence growth?
A: Major players include Tata Group, L&T, HAL, DRDO, Adani Defence, and Bharat Forge.
Q3: What role do exports play in this growth plan?
A: Defence exports are key, with the government targeting ₹50,000 crore annually by FY29.
Q4: How is the government supporting private defence firms?
A: Through policies like DAP 2020, FDI liberalisation, testing infrastructure, and innovation funds.
Q5: What are the biggest challenges in reaching the ₹3 lakh crore goal?
A: Key challenges include technology transfer limitations, R&D scale, and the need to compete globally on quality and price.
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Reported by Benny on June 25, 2025.
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