Government’s Strategy to Boost Defence Exports and Domestic Manufacturing
- 22 Oct 2025
In News:
Defence Minister Rajnath Singh recently announced the government’s target to expand India’s defence manufacturing ecosystem to a valuation of ?3 lakh crore and enhance defence exports to ?50,000 crore by 2029.This marks a significant step in India’s vision of transforming from the world’s largest arms importer to a global defence manufacturing and export hub.
About the Initiative
The plan represents a strategic roadmap to strengthen India’s indigenous defence production base while increasing global competitiveness. It aligns with the objectives of Atmanirbhar Bharat and Make in India initiatives in the defence sector.
Key Features and Focus Areas
1. Private Sector Integration
- Encouraging partnerships between private defence manufacturers, Defence Research and Development Organisation (DRDO), and Defence Public Sector Undertakings (DPSUs).
- Collaboration with foreign Original Equipment Manufacturers (OEMs) to facilitate joint ventures, co-development, and technology transfer.
- Promoting participation in the Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu to attract domestic and foreign investment.
2. Indigenisation of Defence Platforms
- Expanding indigenous production of major systems such as:
- LCA Tejas fighter aircraft
- Akash surface-to-air missiles
- Pinaka multi-barrel rocket launchers
- Advanced Light Helicopters (ALH) and Arjun tanks.
- Focus on import substitution through locally developed components, sensors, and sub-systems.
3. Policy and Regulatory Reforms
- Simplification of defence procurement procedures (DPP) and Defence Acquisition Procedure (DAP) to ensure faster clearances.
- Streamlined export licensing and authorisation through a single-window system.
- Incentivisation under Make-I, Make-II, and iDEX (Innovations for Defence Excellence) programmes.
- Enhanced funding for start-ups and MSMEs in defence innovation under the Technology Development Fund (TDF).
4. Skill Development and Research
- Establishment of specialised defence education and skilling institutes, such as Symbiosis Skills and Professional University, to build a trained workforce.
- Promotion of R&D collaboration between academia, industry, and DRDO to accelerate innovation in next-generation technologies like AI, robotics, and autonomous systems.
5. Operational Validation
- Indigenous systems have been successfully deployed in real operations—such as Operation Sindoor, which demonstrated the combat readiness and reliability of domestically produced defence equipment.
- Strengthening of quality assurance and field validation processes to enhance global trust in Indian defence products.
Strategic Significance
- Economic Growth:The initiative will boost industrial output, exports, and employment, contributing to India’s defence industrial self-reliance and GDP growth.
- Global Competitiveness:Positions India as a net defence exporter, catering to friendly nations in Asia, Africa, and Latin America.
- National Security:Reduces dependence on foreign arms imports and enhances strategic autonomy in critical technologies.
- Technological Innovation:Encourages indigenous innovation and the development of dual-use technologies benefiting both defence and civilian sectors.
- Geopolitical Leverage:Expanding defence exports strengthens India’s diplomatic ties through defence diplomacy and builds strategic partnerships with friendly nations.
Challenges Ahead
- Need for faster project implementation and clearer export procedures.
- Addressing R&D funding gaps and improving private sector participation.
- Ensuring competitive pricing and quality to meet global standards.
- Streamlining coordination among MoD, DRDO, DPSUs, and private players.
Way Forward
- Promote joint ventures with global defence majors to enhance technology absorption.
- Strengthen testing and certification infrastructure to meet international benchmarks.
- Expand defence offset policies to attract advanced technologies.
- Encourage defence start-ups and innovation clusters for rapid prototyping and scalable production.
Conclusion
India’s ambitious target to achieve ?3 lakh crore in defence production and ?50,000 crore in exports by 2029 reflects a paradigm shift toward self-reliance, innovation, and global competitiveness in defence manufacturing.
With sustained policy reforms, technological investment, and industry-academia synergy, India is well-positioned to emerge as a reliable global supplier of advanced defence systems and a pillar of regional security.