India Aims for ₹3 Lakh Cr Defence Output by 2029; Russian Army Wears ‘Made in Bihar’ Boots

India’s defence production has touched a record high of ₹1,27,000 crore (US$ 14.80 billion) in the financial year 2023-24, according to the Ministry of Defence. This marks a significant milestone under the Make in India initiative, which aims to enhance domestic manufacturing and reduce reliance on imports.

The most notable shift is in the origin of India’s defence equipment. From a time when 65-70% of defence needs were met through imports, India has now reversed that ratio — 65% of defence equipment is currently manufactured domestically. This reflects the country’s growing self-reliance and technological capacity in military production.

Export Growth: From Jackets to Jets

India’s defence sector is not only meeting local demand but also catering to international buyers. The list of exported equipment is expanding and currently includes:

• Bulletproof jackets
  
• Dornier (Do-228) aircraft
  
• Chetak helicopters
  
• Fast interceptor boats
  
• Lightweight torpedoes
  

An interesting and symbolic example of this progress is that boots manufactured in Bihar are now being used by the Russian Army, demonstrating that Indian defence exports are being accepted for their quality on the global stage.

Looking Ahead: ₹3 Lakh Crore Production Goal by 2029

India has set its sights on reaching ₹3,00,000 crore (US$ 34.88 billion) in defence production by 2029. This goal is part of a larger vision to transform the nation into a global defence manufacturing hub, creating jobs and boosting high-tech innovation.

Some of the key Indigenous defence systems developed in recent years include:

• Dhanush Artillery Gun System
  
• Advanced Towed Artillery Gun System (ATAGS)
  
• Main Battle Tank Arjun
  
• Light Combat Aircraft (LCA) Tejas
  
• Akash Missile System
  
• Indigenous Aircraft Carriers
  

These domestically produced systems serve as a foundation for India’s increasing self-reliance in defence hardware and technology.

FDI Reforms to Attract Global Collaborations

To support this growth trajectory, the Government of India revised its Foreign Direct Investment (FDI) policy in September 2020. The revised policy allows:

• Up to 74% FDI through the automatic route
  
• Beyond 74% via government approval
  

Since April 2000, India has received ₹5,516.16 crore (US$ 643.1 million) in FDI within the defence industry. These reforms are designed to facilitate joint ventures, enable technology transfers, and encourage global defence manufacturers to establish a presence in India.

Budgetary Backing: A Decade of Growth

India’s defence budget has also witnessed a consistent increase over the past decade, signalling long-term commitment to military modernisation and indigenisation. The budget has risen from:

• ₹2,53,000 crore (US$ 29.43 billion) in FY14
  to
  
• ₹6,81,000 crore (US$ 79.24 billion) projected in FY26

This increase supports both procurement and infrastructure development, helping build a robust ecosystem around defence manufacturing.

Conclusion

India’s defence manufacturing journey is steadily moving from being import-dependent to globally competitive. With ambitious production goals, improved policy frameworks, increasing exports, and growing international recognition — as highlighted by the use of Indian-made boots by the Russian army — the nation is establishing itself as a serious player in the global defence landscape.

While challenges remain, the current trajectory suggests that India is well on course to achieve its vision of becoming a leading defence manufacturing hub by the end of the decade.

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