Massive Growth in Defence Exports Marks Shift Towards Strategic Self-Reliance
India’s defence sector is witnessing a historic transformation as the government sets a bold target of achieving ₹50,000 crore in defence exports by 2029–30. Announcing this during an industry interaction, Defence Minister Rajnath Singh highlighted the significant strides made since 2014, with annual defence exports rising from ₹600 crore to ₹24,000 crore in less than a decade. This surge reflects a broader policy shift under the Narendra Modi government to turn India into a major global defence exporter while reducing import dependency.
Singh affirmed that the government has undertaken a slew of reforms to enhance domestic manufacturing capabilities, including procurement policy revamps, strategic partnerships, and incentivisation of local design and development initiatives. A crucial part of this push is the formal notification of a list of restricted defence imports, compelling industry to fulfil demand through indigenous production.
Highlights
Defence exports jumped from ₹600 crore (2014) to ₹24,000 crore (2024).
Target of ₹50,000 crore in exports set for FY2030.
India’s current defence production value: ₹1.6 lakh crore, with a goal of ₹3 lakh crore.
Import bans on specific items to boost domestic manufacturing and innovation.
Import Substitution Strategy Underpins Defence Industrial Policy
The Defence Minister reiterated the Centre’s intent to create a globally competitive ecosystem for indigenous defence manufacturing. By systematically curating negative import lists—covering major platforms and sub-systems—the government has sought to strengthen domestic R&D, encourage joint ventures, and enable MSME participation in high-tech manufacturing.
These import restrictions, rolled out in tranches since 2020, cover a wide spectrum of products ranging from light helicopters and drones to complex missile systems and electronic warfare equipment. The move has not only reduced reliance on foreign OEMs but also fostered indigenous capability development across both the public and private sector.
Singh emphasized that the current policy mix is aligned with long-term national security interests and global geopolitical realities that demand self-sufficiency in critical technologies.
Highlights
Import bans on over 400 defence items to catalyze local production.
Greater R&D funding and technology transfer mechanisms introduced.
Strategic aim: reduce foreign dependency and build resilient supply chains.
Chhatrapati Sambhajinagar Pitched as New Defence Manufacturing Hub
In a bid to decentralize the defence industrial base, Rajnath Singh spotlighted Chhatrapati Sambhajinagar (formerly Aurangabad) as a potential emerging defence manufacturing cluster. Addressing industry leaders, Singh invited entrepreneurs to submit viable proposals and assured full support from the Ministry of Defence. He noted the region’s well-developed industrial ecosystem and connectivity infrastructure as key enablers.
This move aligns with the government’s broader aim of encouraging region-specific industrial specialisation under the ‘Make in India’ and ‘Aatmanirbhar Bharat’ frameworks. Singh’s pitch reflects growing recognition of tier-II and tier-III cities in driving the next phase of industrial expansion in the strategically vital defence sector.
Highlights
Chhatrapati Sambhajinagar identified for potential defence production investments.
Government calls for industry proposals to leverage local capabilities.
Vision aligns with national goal of geographically diversified industrial development.
Vision 2030: Scaling Up Defence Production to ₹3 Lakh Crore
Looking ahead, Singh confirmed the government’s ambition to scale total defence production from the current ₹1.6 lakh crore to ₹3 lakh crore by FY2030. This includes both the public and private sector output, and underscores a renewed focus on systems integration, value chain expansion, and export competitiveness.
To support this transition, policy frameworks such as the Defence Acquisition Procedure (DAP), Innovations for Defence Excellence (iDEX), and Defence Testing Infrastructure Scheme (DTIS) have been implemented. Together, these aim to remove entry barriers for start-ups, MSMEs, and new entrants in the defence space.
Singh’s statement comes amid rising global defence demand and shifting supply chains, positioning India as a credible exporter of affordable, combat-tested, and scalable defence systems across Africa, Southeast Asia, and Latin America.
Highlights
Targeted production value: ₹3 lakh crore by FY2030.
Supportive schemes: DAP, iDEX, DTIS, and Strategic Partnership Model.
India seeks to emerge as a global source for cost-effective defence technologies.
