India is on a mission to transform its defence sector into a global powerhouse, with ambitious goals that could redefine its position on the world stage.
Speaking at an event in Thiruvananthapuram on August 30, 2024, Defence Minister Rajnath Singh outlined the government’s aggressive targets: Rs 3 lakh crore in defence production and Rs 50,000 crore in defence exports by 2029.
The minister emphasized that India is making unprecedented strides towards self-reliance, particularly in the defence sector. He highlighted the government’s efforts to establish a robust production base and foster an ecosystem conducive to defence research, development, and innovation.
Key measures include the creation of Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, as well as the issuance of five Positive Indigenisation Lists encompassing more than 5,500 items. Notably, the upcoming production of GE-414 engines in India marks a significant advancement in the nation’s engine manufacturing capabilities, a critical step toward reducing dependency on foreign suppliers.
Reflecting on India’s past reliance on imports for defence equipment, Singh noted a significant shift. Where once 65-70 percent of defence needs were met through imports, today, 65 percent of this equipment is manufactured within India. This shift not only strengthens India’s defence capabilities but also boosts its economic standing.
He also highlighted India’s growing influence on the global stage, particularly as the “biggest voice of the Global South.” He credited the government’s policies and the people of India for driving this transformation, which has led to “epochal changes” in various sectors over the past decade. From economic reforms to social transformation, cultural revival, and political change, India is on the cusp of an era of unparalleled development, prosperity, and social harmony.
Financially, India’s defence sector has already crossed Rs 1.27 lakh crore in annual production, with a target of Rs 1.75 lakh crore for the current fiscal year. The export sector is also thriving, with defence exports reaching Rs 21,000 crore in FY 2023-24. The government’s aim to increase defence exports to Rs 50,000 crore by 2029 reflects its determination to make India a global hub for defence manufacturing.
Singh further underscored the rapid growth of India’s economy since 2014, transforming from one of the “Fragile Five” to being recognized among the “Fabulous Five.” India’s consistent economic growth, with an 8.2% increase in the last fiscal year, positions it as the fastest-growing major economy for two consecutive years. Projections suggest India will become the third-largest economy by 2027, a testament to its robust and resilient economic policies.
In conclusion, the Defence Minister asserted that despite rapid economic growth, India has maintained control over inflation, with retail inflation recorded at 3.54% in July 2024, the lowest in five years. Additionally, India’s start-up ecosystem, now the third-largest globally, continues to attract substantial investments, reflecting the nation’s dynamic and evolving economy.