New Delhi, Dec 18 (IANS) India has set an ambitious target of achieving Rs 3 lakh crore in defence production and Rs 50,000 crore in defence exports by 2029, Union Minister Mansukh Mandaviya said on Thursday, underscoring the country’s push towards Aatmanirbharta in the strategic sector.

Addressing a press conference in the national capital, the Union Minister for Labour & Employment and Youth Affairs & Sports said India’s journey towards self-reliance in defence has moved beyond policy intent and is now a “strategic reality”.

He highlighted that indigenous manufacturing has significantly reduced the country’s dependence on imports while strengthening domestic capabilities.

According to the Union Minister, India recorded its highest-ever defence production in FY 2024-25 at Rs 1.54 lakh crore. Indigenous production has grown by nearly 174 per cent over the past decade, rising from Rs 46,429 crore in 2014-15 to Rs 1.27 lakh crore in FY 2023-24.

“India now manufactures approximately 65 per cent of its defence equipment domestically, a significant improvement from the previous high import dependence of 65-70 per cent,” he said.

He also said that Micro, Small and Medium Enterprises (MSMEs) have emerged as key drivers of this transformation, with around 16,000 MSMEs now forming the backbone of the defence manufacturing ecosystem.

He noted that reforms in defence procurement, production and exports have helped address long-standing challenges such as slow acquisition processes, limited private sector participation and negligible exports.

Highlighting recent policy measures, the Minister said the Defence Procurement Manual 2025 and the ongoing review of the Defence Acquisition Procedure 2020 are aimed at improving speed, transparency and innovation.

“The focus on the Indian-Indigenously Designed, Developed, and Manufactured (IDDM) category ensures that defence equipment is first designed, developed, and manufactured in India,” he said.

In July 2025, the Defence Acquisition Council approved proposals worth Rs 1.05 lakh crore for advanced platforms, including armoured vehicles and missile systems, with a strong emphasis on the ‘Buy Indian–IDDM’ category.

The Minister also pointed to the success of defence industrial corridors in Uttar Pradesh and Tamil Nadu, which have attracted investments exceeding Rs 9,100 crore. Nearly 92 per cent of defence contracts in FY 2024-25 were awarded to domestic firms, supported by the issuance of 788 licences to 462 companies.

Defence exports have witnessed a dramatic surge, growing nearly 34 times from Rs 686 crore in FY 2013-14 to a record Rs 23,622 crore in FY 2024-25. India now exports defence equipment to over 100 countries, including missiles, aircraft and protective gear.

Reiterating the government’s long-term vision, he said India is firmly on track to emerge as a global defence manufacturing hub by the end of the decade.

–IANS

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