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Key Points

India's defence production is set to witness a six-fold increase, reaching Rs 8.8 lakh crore by 2047, according to a CII-KPMG report. This leap will coincide with the defence budget rising five-fold, aiming for robust industry growth. Key strategies include bolstering R&D investment and fostering public-private partnerships to enhance innovation and reduce foreign dependency. By setting phased targets, India aspires to become a top global exporter of defence technology, driving long-term national security and economic strength.

Key Points: India Eyes Rs 8.8 Lakh Crore Defence Boom by 2047

  • Defence output to hit Rs 8.8 lakh crore by 2047
  • Budget to increase five-fold to Rs 31.7 lakh crore
  • Exports to rise 12-fold, targeting global market lead
  • Public-private partnerships essential for sector growth
3 min read

India's defence production projected to jump 6-fold to Rs 8.8 lakh crore in 2047

India's defence production to soar six-fold, marking a significant industry shift by 2047.

"Achieving self-reliance requires strategic planning and increased budget allocations. - CII-KPMG Report"

New Delhi, May 30

The country’s defence production is expected to surge over six-fold to Rs 8.8 lakh crore in 2047 from Rs 1.46 lakh crore in 2024-25, according to a report compiled by the Confederation of Indian Industry (CII) and KPMG India.

India’s annual defence budget could increase around five-fold to Rs 31.7 lakh crore in 2047, from Rs 6.81 lakh crore currently allocated for financial year 2025-26.

The report — titled “Atmanirbhar, Agrani, and Atulya Bharat 2047” — released at the CII annual business summit here, estimates India’s defence exports to rise to Rs 2.8 lakh crore in 2047, which represents a nearly 12-fold jump compared to the corresponding figure of Rs 24,000 crore for 2024-25.

The report pegs the country’s total defence expenditure at 4.5 per cnet of GDP for 2047, up from 2 per cent of GDP at present.

The allocation for R&D (research and development) in the defence budget is also expected to from 4 per cent at present to 8-10 per cent as the country pursues the development of cutting-edge technology for military hardware.

The report observes that achieving the vision of India as a developed nation by 2047 with a strengthened defence sector, faces some challenges. However, promoting robust public-private partnerships is necessary and incentives are required to encourage the private sector enter and sustain in the defence manufacturing domain.

“Intellectual property (IP) rights and technology-transfer issues with foreign collaborators also present obstacles in achieving self-reliance. Addressing these challenges requires strategic planning, increased budget allocations, streamlined procedures, robust policy frameworks, and fostering a culture of innovation and collaboration between the public and private sectors,” the report states.

Highlighting India's aspirations to emerge as a leading nation in the global defence hierarchy, the report identifies “strategic vectors” with specific timelines to achieve this goal.

The vectors include achieving enhanced self-reliance in defence production and capabilities by 2032, by targeting critical areas for comprehensive indigenous development, reducing dependence on foreign suppliers, and fostering innovation through domestic R&D and manufacturing excellence.

The report further states that by 2038, India should aim to become one of the top-five global exporters of high-quality defence equipment and technology by expanding international partnerships, meeting global standards, and vigorously promoting defence products in international markets.

It fixes a 2045 target for India to become a world leader in developing and deploying cutting-edge niche technologies across the defence sector, by encouraging collaboration between industry, academia, and government, and driving substantial investments in futuristic R&D.

By committing to these vectors, India can turn its aspirations into reality, the report added.

- IANS

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Reader Comments

R
Rajesh K.
This is fantastic news! 🇮🇳 Finally we're moving towards true self-reliance in defence. The 12-fold jump in exports shows we can compete globally. Just hope the private sector gets proper incentives to participate meaningfully.
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Priya M.
While the vision is commendable, I worry about the 4.5% GDP allocation for defence. That's a huge amount that could otherwise fund education and healthcare. Need balance between security and development.
A
Amit S.
Great roadmap! But implementation is key. Our DRDO and defence PSUs need to improve their track record of delays. Private sector participation can bring efficiency - hope the bureaucracy doesn't create hurdles.
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Sunita R.
With China's growing aggression at borders, this investment is absolutely necessary. We can't afford to depend on foreign imports forever. Jai Hind! ✊
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Vikram J.
Hope this leads to more jobs for Indian engineers and technicians. Defence manufacturing can be our next IT sector if handled properly. But quality control must be top priority - no compromise on soldiers' safety.
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Neha P.
The R&D budget increase is most exciting part! We need to develop our own technologies instead of just assembling foreign designs. More IITs should have dedicated defence research programs.
K
Karan D.
Good vision, but where's the accountability? Every year we hear big numbers but HAL still struggles with Tejas production. Need transparent milestones and public progress reports.

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