New Delhi, Mar 29: The government on Saturday said it aims to achieve Rs 3 lakh crore in defence production by 2029, reinforcing the country’s position as a global defence manufacturing hub.

About 65 per cent of defence equipment is now manufactured domestically, a significant shift from the earlier 65-70 per cent import dependency.

A robust defence industrial base includes 16 DPSUs, over 430 licensed companies, and approximately 16,000 MSMEs, strengthening indigenous production capabilities, according to a statement by Ministry of Defence.

“The private sector plays a crucial role, contributing 21 per cent to total defence production, fostering innovation and efficiency,” it added.

The government said it aims to reach Rs 50,000 crore in defence exports by 2029, reinforcing India's role as a global defence manufacturing hub while boosting economic growth.

Defence exports surged by 32.5 per cent year-on-year, rising from Rs 15,920 crore in FY 2022-23 to Rs 21,083 crore in FY 2023-24.

Defence exports have grown 21 times, from Rs 4,312 crore in the 2004-14 decade to Rs 88,319 crore in the 2014-24 decade, highlighting India’s expanding role in the global defence sector.

India now exports defence equipment to over 100 countries, with the US, France and Armenia emerging as the top buyers in 2023-24.

Moreover, the Ministry of Defence said it has signed a record 193 contracts in 2024-25, with the total contract value surpassing Rs 2,09,050 crore, nearly double the previous highest figure.

Of these, 177 contracts, accounting for 92 per cent, have been awarded to the domestic industry, amounting to Rs 1,68,922 crore, which is 81 per cent of the total contract value.

This significant focus on indigenous manufacturing aligns with the vision of self-reliance in defence production, boosting local industries and generating employment across the sector.

In FY24, the value of defence production surged to a record high of Rs 1,27,434 crore, marking an impressive 174 per cent increase from Rs 46,429 crore in 2014-15, according to data from all Defence Public Sector Undertakings (DPSUs), other public sector units manufacturing defence items, and private companies.

--IANS

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