India Targets 50% Private Share in Defence Production as Exports Surge

India's defence exports jumped over 60 percent to reach a record ₹38,424 crore in FY 2025-26, accelerating New Delhi's push toward an ambitious ₹50,000 crore annual milestone by 2029. Speaking at the Society of Indian Defence Manufacturers annual session in New Delhi, Defence Minister Rajnath Singh called on domestic defence firms to aggressively expand output and technological sovereignty.

At the heart of the government's roadmap is doubling the private sector's share in total domestic defence production from approximately 24 percent to 50 percent. Pointing to fast-evolving conflict dynamics, the Ministry emphasized that national security now hinges on sovereign control over critical military technologies, from tactical drones and air defence systems to secure battlefield communications.

Manufacturers must treat research and development as an operational investment rather than discretionary overhead, Singh noted, highlighting the necessity for industry to maintain rapid production surge capacity during operational contingencies. Policy frameworks like the Defence Acquisition Procedure, the SRIJAN indigenisation portal, and iDEX will continue channeling procurement toward domestic suppliers while enforcing rigorous quality and safety benchmarks.

The Ministry also conferred 15 SIDM Champion Awards to honour breakthroughs in import substitution, export performance, and domestic design. For India's private defence manufacturers, the immediate test lies in translating higher R&D outlays into rapid production scaling that can fulfill burgeoning domestic procurement lists and export contracts.