India's defence exports have surged nearly 35 times over the last decade, from ₹686 crore in FY14 to ₹23,622 crore in FY25, and are projected to reach ₹30,000 crore in FY26 and ₹50,000 crore by 2029. Domestic defence production has more than tripled in the last decade, growing from ₹40,000 crore in 2014 to over ₹1.5 lakh crore in FY25, with expectations to touch nearly ₹2 lakh crore in the current fiscal year.

This dramatic growth is fuelled by India's push for Atmanirbharta (Self-Reliance) in defence manufacturing, which aims to reduce import dependency by building a robust ecosystem where public and private sector companies develop world-class defence technologies and products for both domestic use and global export. Major orders such as 97 TEJAS fighter aircraft to Hindustan Aeronautics Ltd (HAL) and development of next-generation fighter jets reflect India’s aim to be a global advanced military exporter.

The defence budget has been substantially increased to support this growth, with ₹6.22 lakh crore allocated in FY25 and further rises planned. India is also actively inviting global partnerships and investments in defence, highlighting collaborations like Airbus’s production of C295 transport aircraft with Tata Aerospace. Defence industrial corridors in Uttar Pradesh and Tamil Nadu are key drivers of this sector’s expansion, alongside liberalised FDI policies and technology transfers from DRDO.

Atmanirbharta Vision In Defence

Atmanirbharta in defence aims not merely at import substitution but at creating a self-sufficient defence manufacturing ecosystem incorporating public and private industries to innovate, manufacture, and export advanced military equipment. The strategy includes focus on indigenous R&D, simplifying licensing and export processes, and fostering start-ups and MSMEs to contribute to defence innovation. It also emphasises that India's defence strength is aligned with its civilizational values of harmony, mutual respect, and global shared progress.

Growth in Defence Production And Exports

Defence exports grew from ₹686 crore in FY14 to ₹23,622 crore in FY25 with exports reaching nearly 100 countries.
Domestic defence production increased from ₹40,000 crore in 2014 to over ₹1.5 lakh crore in FY25.
The government has reserved 75% of the defence procurement budget for Indian firms.
Major indigenous projects include TEJAS fighter (orders worth ₹66,000 crore for 97 jets plus an earlier order for 83 jets worth ₹48,000 crore) and strategic initiatives for fifth generation fighter jets and engines in collaboration with foreign partners.
Private sector defence exports contributed ₹15,233 crore in FY25, whereas Defence Public Sector Undertakings (DPSUs) contributed ₹8,389 crore.

Government Initiatives

Enhanced defence budget (₹6.22 lakh crore in FY25, rising further).
Five positive indigenisation lists and DPSUs’ indigenisation lists to boost domestic production.
Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu to attract investments.
Liberalised FDI policy allowing up to 74% under automatic route and 100% on government approval.
Technology transfers from DRDO free of cost to industry.
Strategic Partnership Model encouraging private firms to develop fighter jets, helicopters, tanks, and submarines.
Invitation to global defence companies for investment and co-production in India, exemplified by partnerships like Airbus-TATA Aerospace.

Future Outlook

India envisions emerging as a key global defence supplier with advanced capabilities and global partnerships. Defence Minister Rajnath Singh underscores India’s growing global leadership, framed by its civilizational values, economic strength, and demographic dividend. Indian ethos prioritises strength as capacity to care and mutual respect rather than dominance, aiming for a global order based on harmony and dignity. India is positioned to play a leading role in shaping the next global order and to elevate its defence industry to world-class status by 2029 and beyond.

How Realistic Is The ₹50,000 Crores Defence Export Target By 2029

The ₹50,000 crore defence export target by 2029 is ambitious yet quite realistic given India's recent trajectory and ongoing reforms. India's defence exports have already grown nearly 35 times over the last decade, reaching around ₹23,622 crore in FY25, close to half the target. This significant progress is backed by a nearly tripled domestic defence production and government policies that prioritize indigenous manufacturing, private sector participation, and simplification of export procedures.

Key factors supporting the target’s realism include:

Strong government commitment with increased defence budgets and procurement reserved mainly for Indian companies.

Policy reforms easing industrial licensing and export authorisation, alongside free transfer of technology from DRDO.

Rapid growth of private sector defence exports, now exceeding public sector exports, indicating a robust industrial base.

Major projects like the indigenous Tejas fighter aircraft and collaborations with global companies enhancing technological capabilities.

Expanding international defence markets where India is gaining clients looking for cost-effective, reliable equipment across Asia, Africa, and the Middle East.

Challenges remain, such as competing with established global players like the US, Russia, and China, and requiring continuous R&D investments, innovation, and expanding strategic alliances. However, with steady government support, growing industrial capabilities, and a focus on both volume and quality, India is on a clear path to meet or potentially exceed this export target, following models like South Korea which rapidly ascended in global defence exports by energising their indigenous industry.

Given India's current momentum, policy environment, and export track record, the ₹50,000 crore defence export target by 2029 is a credible and achievable goal rather than just a vision on paper. 

Through Atmanirbharta and strategic investments, policy reforms, and global partnerships, India is rapidly transforming into a major global defence exporter and self-reliant military power with a vibrant ecosystem that supports innovation, manufacturing, and exports of advanced defence products. This trajectory supports national security and international cooperation alike.

Based On ET News Report