Government Sets Rs. 3 Lakh Crore Defence Production Target by 2029: Defence Minister

• Consultative Committee of Ministry of Defence on ‘Modernisation of Indian Defence Forces’ outlines plans for future-ready military

• To achieve Rs. 50,000 crore defence exports by 2029

Jaisalmer, Nov 3, 2026. Defence Minister Rajnath Singh has called for accelerating the modernisation of the Indian Armed Forces, with a greater emphasis on indigenous technologies, artificial intelligence, autonomous systems and joint operational capabilities.  The Government has set a target of achieving defence production worth Rs. 3 lakh crore and exports of Rs. 50,000 crore by 2029 as India prepares to meet the challenges of technology-driven warfare.

Chairing a meeting of the Consultative Committee of the Ministry of Defence on ‘Modernisation of Indian Defence Forces’ in Jaisalmer, Singh outlined the Government’s initiatives across three key areas — budget and capital acquisition, technology and human capital — to build a future-ready and technologically empowered military.

Defence Budget Hiked

Singh said the defence budget for 2026-27 had been increased to a record Rs. 7.85 lakh crore, including a capital outlay of Rs 2.19 lakh crore for modernisation and capital procurement. Adequate financial resources, he stressed, must be accompanied by effective utilisation and prioritisation of the critical operational requirements of the three Services.

Highlighting the progress in Atmanirbharata, the Defence Minister said domestic defence production had increased from Rs. 46,429 crore in 2014-15 to a record Rs. 1.78 lakh crore in 2025-26. Defence exports, which were below Rs. 2,000 crore in 2014, had grown to approximately Rs 40,000 crore. He underlined the importance of building a robust domestic defence industrial ecosystem to reduce dependence on foreign suppliers and strengthen strategic autonomy.

Technology and Indigenous Capabilities

Emphasising the growing influence of technology on the character of warfare, Singh highlighted the role of the Defence Research and Development Organisation (DRDO) in developing advanced weapons, missiles and other military systems. He said the Government was providing a level playing field to the private sector, encouraging participation across the spectrum, from micro, small and medium enterprises to large corporations.

Describing this as a whole-of-the-nation approach, he welcomed the increasing contribution of domestic industry to India’s defence capabilities. He also stressed the need for closer collaboration between the Armed Forces, DRDO, defence public sector undertakings, private industry, start-ups and academic institutions to accelerate the transition from research and innovation to operational deployment.

The discussions identified artificial intelligence, autonomous systems, unmanned platforms, cyber and space capabilities, electronic warfare and advanced communications as important areas requiring greater attention. Accelerating the induction of next-generation platforms, weapon systems and technologies was considered essential to improving combat effectiveness and operational preparedness.

Focus on Jointness and Human Capital

The Defence Minister said modernisation could not be measured merely by the acquisition of new weapons and equipment. It also required strengthening the operational preparedness of personnel, developing indigenous technologies and improving the ability of the three Services to operate jointly across multiple domains.

He pointed to the continuing restructuring of the Armed Forces to meet contemporary operational requirements. The Indian Army’s new formations, including the Asani, Bhairav and Shaktiban platoons, were proving effective in adapting to changing battlefield dynamics.

The meeting also emphasised the need for clear modernisation priorities, institutional mechanisms and measurable milestones to ensure that planned initiatives translated into tangible operational capabilities. A structured and phased approach, supported by periodic assessments, would be necessary to prepare the Armed Forces for conventional, sub-conventional and multi-domain security challenges.

Improved Coordination Among Stakeholders

Members of Parliament from both the Lok Sabha and Rajya Sabha offered suggestions during the deliberations, bringing legislative, strategic and national perspectives to the discussions. Their inputs helped shape a roadmap focusing on critical capability requirements, improved coordination among stakeholders and streamlined acquisition and development processes.

The Minister of State for Defence,  Sanjay Seth; Defence Secretary Rajesh Kumar Singh; Secretary (Defence Production) Sanjeev Kumar; Secretary (Ex-servicemen Welfare) Sukriti Likhi; Secretary (Defence Finance) Vishvajit Sahay and senior civil and military officials attended the meeting.